Despite state taxes, you should still apply for student loan forgiveness. ----Here's why.

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Many Americans were relieved by the Biden administration's student loan forgiveness programme, 

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which allowed certain borrowers to have up to $20,000 in federal student loans cancelled. Due to their state's decision to classify the money saved through 

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student loan forgiveness as taxable income, many people are on the fence about applying.

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States like Minnesota, Arkansas, West Virginia, and Wisconsin haven't made up their minds on the subject, while North Carolina, Mississippi, and Indiana have.

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Even while it may be perplexing, for many borrowers, forgiving student loans is still worthwhile, even when they are taxed.

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Taxes are not "one size fits all." Everything depends on how the government measures income, said Jacob Channel, a senior economist at LendingTree.

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"We all believe that our income is determined by our pay or compensation. However, other items do frequently fall under the umbrella of revenue,  

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If you receive a grant while in school, for instance, the award money may be added to your income.

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Furthermore, according to Channel, these taxes will probably vary from state to state.

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