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Millions of student loan borrowers could face a hidden tax bill in 2026. It’s called the Student Loan Tax Bomb, and unless Congress acts, forgiveness could once again be treated as taxable income. In this video, LoanSense CEO Catalina Kaiyoorawongs breaks down: ➤ What the “tax bomb” really means ➤ Why student loan forgiveness is only federally tax-free through 2025 ➤ Which five states are already taxing forgiveness (Indiana, North Carolina, Wisconsin, Mississippi, Arkansas) ➤ What happens if Congress doesn’t renew the exemption ➤ How to protect yourself before the window closes If you’ve paid over 10 years on PSLF or 20+ years on IDR, now is the time to act before forgiveness becomes taxable again. Chapters 00:00 – What is the Student Loan Tax Bomb? 01:25 – Why forgiveness is only temporarily tax-free 02:42 – How the 2026 expiration works 04:00 – States currently taxing forgiveness 06:55 – Why state laws vary 10:49 – What happens after 2025 if Congress doesn’t act 13:06 – How this could affect you 14:19 – What borrowers can do now 14:44 – How to prepare and next steps Helpful Links: Read our full blog breakdown: The Student Loan Tax Bomb: 2026’s Hidden Threat to Forgiveness Book a LoanSense consult with $20 off — use code LS20OFF: myloansense.com #StudentLoans #Forgiveness #TaxBomb #PSLF #IDR #LoanSense #FinancialWellness #StudentLoanForgiveness #Tax