A group of U.S. Senators is backing a proposal to eliminate a tax penalty levied on student loans forgiven after the death or disability of the borrower. The group that includes Ohio Republican Rob Portman says the government forgives some student loans in such cases, but the IRS treats the canceled debt as income, which can result in tens of thousands of dollars in tax liability. U.S. House members are also re-introducing a companion bill.
Portman Backing Bill To Eliminate Tax Penalty On Certain Student Loans
