Loan forgiveness for student loans is much awaited with the upcoming transition of president-elect Joe Biden. Regardless of the decision, loan forgiveness will be counted as taxable income. There are a few instances when student loans are tax-free, but it is important to do your research and calculate how much you would owe. IRS also offers options that allow you to either pay off or settle for a lower amount in certain situations. It is still uncertain if loan forgiveness will do happen, but one must continue prioritizing savings and setting aside for any emergency use.