For more on grounds to cancel or discharge a federal student loan debt, see NCLC’s Education loan Laws Chapter 10. That chapter examines the closed school, false certification, unpaid refund borrower defense, disability, and death discharges, and also forgiveness for public service, teachers, other professions, and for other categories of student loan borrowers. Forgiveness based on income-driven repayment plans is examined at NCLC’s Student loan Law Chapter 3.

When the principal amount of a homeowner’s mortgage debt is partially or fully forgiven through a short sale, loan modification or otherwise, the amount forgiven is included in a taxpayer’s gross income, triggering a potential hefty tax liability. Lees verder “Present Regulations In addition to Excludes Mortgage Obligations Forgiveness from Nonexempt Income”