Student Loan Forgiveness Is a Ticking Tax Bomb Again, Study Warns

October 9, 2026 – In a USA Today article about how canceled student debt balances are taxable again as income starting this year, Stacey MacPhetres, senior director of education finance at Bright Horizons, shares guidance on planning ahead for the potential tax impact and avoiding surprises when forgiveness occurs.

"For most borrowers pursuing IDR forgiveness, a taxable forgiveness event is still financially advantageous," said Stacey MacPhetres, senior director of education finance at Bright Horizons, a provider of educational advisory services. "Even if a borrower owes taxes on the forgiven amount, the resulting tax bill is typically far smaller than the balance that was discharged."

Read the full article here.