How Real Is The Student Loan Tax Bomb? What The IRS Data Says
The student loan tax bomb returns in 2026. History says few ever paid it, but millions now near forgiveness. See what the IRS data reveals.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared toward anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications, including the New York Times, Wall Street Journal, Washington Post, ABC, NBC, Today, and more. He is also a regular contributor to Forbes.

The student loan tax bomb returns in 2026. History says few ever paid it, but millions now near forgiveness. See what the IRS data reveals.

Student loan entrance counseling is required before you can receive your first undergraduate or graduate federal student loan. Learn why.

Nelnet’s updated FAQ signals the Department of Education shortened the SAVE exit timeline: all 7 million borrowers likely get 90-day notices by end of 2026.

New IRS data shows only 165,000 tax returns paid the 529 plan penalty for 2023, totaling $76.6 million – an average of just $464 per family.

HSA Rollovers can be helpful to move an old HSA account to a new provider, but there are rules you need to follow!

The Ninth Circuit affirmed Sweet v. McMahon settlement deadlines, ordering the Department of Education to deliver debt relief to 170,000+ borrowers.

Common Sense Media rated Google’s AI Overview and AI Mode an unacceptable risk for kids, citing failed safety tests, fabricated facts, and no off switch.

Juniors and seniors can get student loans without a cosigner. Compare Funding U, Ascent, and GradBridge rates, limits, and eligibility rules.

The University of Nebraska System faces a surprise $36 million state funding cut after Gov. Jim Pillen ordered mid-year spending reductions.

The SAVE plan is ending, but up to 3 million borrowers may still qualify for $0 student loan payments on IBR. See the 2026 income cutoffs.

Americans’ confidence in higher education fell to 38% in 2026, per Lumina-Gallup. Cost, campus politics, and AI’s threat to degrees drive doubts.
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