MN Department of Revenue: Biden administration's student loan relief plan will be taxable to state residents

(St. Paul, MN) -- President Biden's plan to cancel student loans for some students comes with a catch in Minnesota.

The state's Department of Revenue yesterday said the 10 thousand or 20 thousand-dollars in canceled student loans will be taxable. There was a plan in the state legislature to make those canceled student loans tax-free, but lawmakers never passed it.

The president is looking to cancel 10 thousand-dollars worth of student loans for people making under 125 thousand-dollars a year, and 20 thousand-dollars of loans for people who got Pell Grants.