For 2023 tax filings, student loan borrowers may deduct up to $2,500 in interest paid due to the resumption of payments. Despite the blockage of sweeping student loan forgiveness, some borrowers have received relief. Notably, forgiven debt remains non-taxable federally until 2025, but state taxes may apply. Additionally, the Education Department is providing refunds for payments made on loans that were later forgiven, which are not taxable.
