WeVote
Log In

Bill

Bill

HB 1720

Income tax; exclude from gross income certain forgiven, cancelled or discharged federal student loan debt.

2025 Regular Session Introduced by Jody Steverson

Exempts Mississippi residents from state income taxes on federally forgiven or discharged student loan debt, reducing tax liability for eligible borrowers.

Died In Committee
#waysandmeans
0
WeVote Research Nonpartisan
Bill Summary · HB 1720

Legislative bill overview

HB 1720 would exclude forgiven, cancelled, or discharged federal student loan debt from Mississippi state income tax calculations. This means Mississippians who had federal student loans forgiven through programs like Public Service Loan Forgiveness or income-driven repayment plan forgiveness would not owe state income taxes on the forgiven amount.

Why is this important

Federal student loan forgiveness can result in substantial income that would normally be taxable at the state level, creating an unexpected tax burden for borrowers. This bill would align Mississippi's tax treatment with federal tax policy and provide financial relief to residents benefiting from loan forgiveness programs. The provision is particularly relevant given the expanded federal forgiveness initiatives in recent years.

Potential points of contention

  • Revenue impact: Excluding forgiven debt from taxable income reduces state tax revenue; opponents may argue this strains the budget during competing fiscal priorities
  • Equity concerns: The benefit primarily reaches higher-income borrowers who attended college; some may view this as preferential treatment versus other debt relief or economic assistance
  • Narrow scope: The bill applies only to federal loans, creating different treatment for those with private student loans, raising fairness questions

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.