Two top DFLers on the Senate Tax Committee said today that they are pushing to ensure that Minnesotans eligible for the federal student loan forgiveness announced last week by President Biden will not be taxed on that relief.
Senators Ann Rest (DFL – New Hope) and Kari Dziedzic (DFL-Minneapolis) said they are planning to press legislation as soon as they can to prevent any tax consequences for Minnesotans whose student loans are fully or partially forgiven under the federal plan. Their tax prevention measure will be introduced when the Legislature returns in January, or sooner, if there is a special session this year.
State officials in both Mississippi and North Carolina have said residents of their states will get taxed on student loan forgiveness. Minnesota is one of several states that could tax student loan forgiveness without legislative action.
“We are going to ensure that student loan debt reduction doesn’t get taxed in Minnesota – period,” said Senator Rest, the DFL Lead on the Senate Tax Committee.
“We stand ready to act as soon as possible to prevent taxes on Minnesotans who are eligible for student loan forgiveness,” said Sen. Dziedzic. “Whether we do it in a special session this year, or when the legislature returns in January, we will push to ensure student loan relief is not taxed.”
Both Senators said the state also needs to explore ways to bring down the cost of higher education.