President Biden’s student loan cancellation is the gift that keeps on giving, unless you’re the sucker who paid off his loan or didn’t go to college. Thanks to a little-known provision in the March 2021 Covid spending bill, student borrowers will get a hefty tax benefit on top of their $10,000 or $20,000 canceled debt.
Progressives began hounding Biden on loan forgiveness while he was still on the campaign trail, anticipating a boon in last year’s $1.9 trillion American Bailout. The provision, sponsored by Sens. elizabeth warren other Bob Menendez, makes loan forgiveness tax-free until January 1, 2026. The senators’ press release at the time boasted that this “paved the way” for President Biden to forgive up to $50,000 in debt. So it was.