NJ AR95

Urges Congress to permanently exclude all forms of discharged student loan debt from federal income taxation, not just those forgiven through specific programs like Public Service Loan Forgiveness or Teacher Loan Forgiveness

Notes that the "American Rescue Plan Act of 2021" temporarily exempted student loan forgiveness from income tax for debt discharged between January 1, 2021 and January 1, 2026

Highlights that after January 1, 2026, borrowers receiving loan forgiveness will face potential tax liabilities on discharged amounts, including those in Income-Driven Repayment Plans after 20-25 year repayment periods

Anticipates an unprecedented number of borrowers will receive forgiveness under proposed federal regulations covering accrued interest, low-financial-value program enrollees, and borrowers experiencing hardship

Directs copies of the resolution be sent to New Jersey's congressional delegation, the U.S. Treasury Secretary, and the IRS Commissioner