The start of the new year is bringing clarity (and some new pressure points) for students and families. The IRS has set the official start of tax season, colleges are making contrasting moves on tuition, and changes to student loan tax treatment and immigration-related tuition rules are beginning to land.
Here’s a quick look at the most important stories shaping higher education and student finances this week for January 9, 2026.
🎓 Headlines at a Glance
- The IRS announces the official start of the 2026 tax filing season.
- Grand Canyon University extends its undergraduate tuition freeze again.
- Student loan forgiveness becomes taxable for some borrowers in 2026.
- Virginia ends in-state tuition for undocumented students after federal action.
Would you like to save this?
We'll email this article to you, so you can come back to it later!
1. IRS Announces The Start Of Tax Season: January 26, 2026
The Internal Revenue Service confirmed that the 2026 tax filing season will begin January 26, when it starts accepting 2025 tax returns. We've cautioned that processing could be slower this year due to staffing constraints and recent tax-law changes.
For students and families, the timing matters beyond refunds. Tax returns are used to claim education credits like the American Opportunity Tax Credit, claim the student loan interest deduction, and provide income data that feeds into financial aid planning for FAFSA.
➡️ Impact: Delays in filing or processing can affect cash flow, education tax benefits, and FAFSA-related planning. Families expecting refunds or credits tied to education costs may want to file early and double-check documentation.
2. Grand Canyon University Extends Tuition Freeze for the 18th Year
Grand Canyon University announced it will hold undergraduate tuition flat for an 18th consecutive year, continuing a long-running tuition-freeze policy for its on-campus programs. This means tuition in 2026-27 will remain at $16,500 before financial aid.
At a time when many colleges are raising prices or adding new fees, the move offers cost predictability for students already enrolled and those considering admission for the upcoming academic year.
➡️ Impact: While tuition freezes don’t eliminate all college costs, they reduce uncertainty. Families comparing schools may weigh predictable pricing against factors like graduation rates, program outcomes, and living expenses.
3. Student Loan Forgiveness Becomes Taxable for Some Borrowers
As of January 1, 2026, the federal tax exclusion that made most student loan forgiveness tax-free has expired. Borrowers whose loans are forgiven under certain income-driven repayment plans may now owe federal income tax on the amount forgiven.
This change does not affect Public Service Loan Forgiveness, which remains tax-free under federal law, but it could apply to borrowers reaching the end of 20- or 25-year repayment timelines on income-driven repayment plans.
➡️ Impact: A forgiven balance can now trigger a significant tax bill. Borrowers nearing forgiveness should plan ahead and use The College Investor's Tax Bomb Calculator to understand the potential impact.
4. Virginia Ends In-State Tuition for Undocumented Students
Virginia is poised to end its policy allowing undocumented students to qualify for in-state tuition at public colleges following legal action by the U.S. Department of Justice. The change affects students who previously qualified based on residency or high school attendance in the state.
➡️ Impact: Tuition classification can double or triple college costs. Students and families impacted by immigration-related policy changes may need to reassess college choices, aid options, or transfer pathways.
Related Reading:
Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.