President Biden’s student-loan write-off is the gift that keeps on giving, unless you’re the sap who paid off her 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 in canceled debt.
Progressives started hounding Mr. Biden on loan forgiveness while he was still on the campaign trail, and they tucked a perk into last year’s $1.9 trillion American Rescue Plan in anticipation. The provision, sponsored by Sens. Elizabeth Warren and Bob Menendez, makes loan forgiveness tax free through Jan. 1, 2026. The Senators’ press release at the time boasted that this “paves the way” for President Biden to forgive up to $50,000 in debt. And so it did.