Two Student Loan Things Worth Knowing Before Year-End

Student loan news tends to focus on whatever changed this week. But two quieter things could have a much bigger impact on your finances: income recertification and taxes on student loan forgiveness. Neither is a reason to panic. Both are much easier to handle when you know they’re coming.

1. Your IDR recertification date matters again

If you’re on an income-driven repayment plan, your monthly payment is based in part on your income and family size. That information doesn’t stay on file forever. Borrowers generally need to recertify once a year, and those deadlines are individual. You can find yours by logging in to StudentAid.gov and checking the recertification date listed with your loans. Federal Student Aid currently recommends submitting your recertification about 90 days before your deadline to give your servicer time to process it. Why does that matter? Because if you miss your deadline, your payment may no longer be calculated using your income and family size, which can mean a higher monthly payment. The easiest deadline to manage is the one you see coming.

Don't assume your date matches someone else's

There isn't one universal recertification day for everyone. Your date is tied to your individual repayment timeline, so the deadline a friend, coworker, or person online mentions may have nothing to do with yours. You can review Federal Student Aid's current IDR recertification guidance for instructions on finding your date and submitting updated information. And because repayment options have changed significantly this year, recertification is also a good time to make sure your current plan still fits your larger strategy. If you're navigating the transition away from SAVE, we break down what to look for in [What’s Actually Happening With SAVE Right Now?](INTERNAL URL).

2. Some student loan forgiveness may be taxable again

This is the other change worth having on your radar. For several years, a temporary federal provision made many forms of student loan forgiveness tax-free. That provision applied to qualifying discharges through the end of 2025. For debt canceled in 2026 and beyond, some student loan forgiveness may once again be treated as taxable income. The IRS explains the current treatment in its 2026 guidance on student loan forgiveness and taxes. But there's an important exception.

PSLF is different

Public Service Loan Forgiveness remains federally tax-free. So if you're pursuing PSLF, this change doesn't suddenly mean your forgiven balance will become federal taxable income when you reach forgiveness. If you're pursuing forgiveness through an income-driven repayment plan, however, the tax treatment deserves a closer look. A large forgiven balance could create taxable income and potentially a significant federal tax bill. That doesn't make forgiveness a bad outcome. It makes planning ahead a very good idea.

Timing can matter, too

Taxes rarely give us a one-size-fits-all answer, and this is no exception. The IRS notes that borrowers who became eligible for forgiveness in 2025 but didn't have the discharge fully processed until 2026 may still qualify for the previous tax treatment, depending on the circumstances. That's a meaningful distinction for borrowers who were already at or near forgiveness when the rules changed. If you're approaching the end of an income-driven repayment term, this is something to discuss with a qualified tax professional before the forgiveness happens, rather than waiting for tax season afterward.

Two dates. No reason to panic.

Your recertification deadline and your potential forgiveness date aren't the most exciting things on the calendar. But they can have real financial consequences. So know when your recertification is coming. If you're approaching forgiveness outside of PSLF, understand the potential tax implications early. And make decisions based on your timeline, not someone else's. For TSLHG clients, these are exactly the kinds of dates and changes we want on the radar before they become urgent. Because with student loans, a little planning now can save a lot of scrambling later.

This article is for general informational purposes only and isn’t legal, financial, or tax advice for your individual situation. The Student Loan Help Group is a private company and is not affiliated with or endorsed by the U.S. Department of Education. Tax treatment depends on individual circumstances; consult a qualified tax professional regarding your situation. Federal student loan rules can change quickly. Information is current as of September 13, 2026.

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Two Student Loan Things Worth Knowing Before Year-End

1. Your IDR recertification date matters again

Don't assume your date matches someone else's

2. Some student loan forgiveness may be taxable again

PSLF is different

Timing can matter, too

Two dates. No reason to panic.

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