You may be right, It appears that the Fed may exclude taxes, but I haven't seen it in writing. There are approximately 13 states that have indicated that they will tax it as income: most notable is Hawaii at 10%. Notes I have seen say that in general, the IRS does tax this sort of measure unless specifically told not to. We will see. https://www.forbes.com/sites/adamminsky/2022/08/29/bidens-student-loan-forgiveness-could-be-taxable-in-some-states/?sh=41acb53b67fb