ISTA Calls on General Assembly to Fix Student Loan Forgiveness Penalties
09/08/2022
Yesterday, the Indiana Department of Revenue confirmed that Hoosiers with student loans forgiven under executive order by President Joe Biden will be subject to state and county tax penalties by choosing to consider the forgiveness amount as taxable income. In response, ISTA President Keith Gambill issued the following statement:
“Educators facing a lifetime of crushing student debt finally received some relief under the forgiveness proposal by President Biden. Educators with student debt owe $58,700 on average. With pay lagging behind peers with similar levels of education, Hoosier educators celebrated the opportunity to have some, or all of their loans forgiven.
ISTA is calling on legislators to remove this tax penalty on those who will benefit from student loan forgiveness. This is about doing what is right for working Hoosiers. We look forward to working with the General Assembly to make this happen.”