Reps. Gomez and Pascrell Introduce Bill to Make Student Loan Forgiveness Tax-Free
Washington, June 9, 2023
WASHINGTON, D.C. – Today Reps. Jimmy Gomez (CA-34) and Bill Pascrell (NJ-09) introduced the Student Tax Relief Act, legislation to ensure student loan forgiveness is tax-free permanently.
“We’re not waiting for the bogus lawsuit to wrap up to do what needs to be done—student debt cancellation is legal, just, and necessary, and it needs to be tax-free,” said Rep. Gomez. “Student loan debt is a trillion-dollar industry that is crippling graduates of all ages and backgrounds nationwide, especially first-generation students and people of color. This crisis is so severe that it impacts people even decades after graduation, including myself. No matter what the court decides, House Democrats will not stop fighting for broad tax-free student debt relief for millions of Americans.”
"For tens of millions of Americans carrying debts to pay for their educations, the burden can be crippling,” said Rep. Pascrell. “Our legislation will build on the success we achieved in the historic American Rescue Plan by making permanent the tax relief on student loan tax forgiveness. Millions of Americans deserve the opportunity to continue life with a cleaner slate. While Democrats are working to ease the enormous burden of working Americans, congressional Republicans are asking the Supreme Court to kill President Biden’s modest student debt relief measure. We must succeed so lives can be changed for the better through our plan to make loan forgiveness tax-free."
The American Rescue Plan Act included Reps. Gomez and Pascrell’s legislation to make student loan relief tax free through 2025. This updated bill makes it permanent.
For the complete text of the Student Loan Tax Relief Act, please click here.