Students who are under the federal income-based repayment plan (IBR) and the federal income-contingent repayment plan (ICR) are considered to have a partial financial hardship that prevents them from making full payments on their student loans. After a specified period of time, any remaining student debt is forgiven under these plans. However, this forgiven amount is currently considered to be taxable income. If an individual is paying back their student loans in good faith under these plans due to financial hardship, it would create additional financial hardship when they have to pay taxes on the discharged student loan amount. We petition that any unpaid student debt that remains on these plans be discharged if the student has fulfilled their contractual repayment obligations.
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