NY Law Protects Federal Student Debt Relief From State Tax

New York Gov. Kathy Hochul (D) on Friday signed a bill that exempts federal student loan relief from state income tax.

The legislation, S143, was introduced and passed in the Senate and Assembly after President Joe Biden announced the federal government would forgive $400 billion in student loan debt for lower- and middle-income earners—a plan that the Supreme Court ultimately struck down in June. Since then, the federal government has wiped out $132 billion in student debt through smaller, more targeted relief efforts. New York already exempts borrowers from income taxes on student loan debt that is forgiven ...