Mississippians may be taxed for student loan forgiveness

JACKSON, Miss. (WCBI)- When it comes to student loan debt, the Federal Government may be forgiving, but the state of Mississippi isn’t forgetting.

If you are a Mississippi resident approved for federal student loan forgiveness, you may be paying some of that money back to the state, this is according to Bloomberg.

States have the option to collect these taxes because President Biden’s debt forgiveness, like many debt cancellations, is considered income. The state’s Department of Revenue confirmed the debt cancellation will be subject to income.

Some states are considering exempting residents from being taxed, while Mississippi is planning on moving ahead with collecting the taxes.