Cancellation of Education Loans
If you have qualified education loans forgiven, you may qualify for a subtraction from income of the entire amount forgiven.
Do I qualify for this subtraction?
You may qualify if your qualified education loan is discharged after completing a federal income-based repayment plan. Types of discharged student loans that may qualify include any of the following:
- Minnesota Teacher Shortage Loan Repayment Program
- Income-based repayment plans
- Income-contingent repayment plans
- Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE) programs
Your discharged debt must be included in your federal taxable income to qualify for this subtraction.