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Predicting the Future of the Tax Bomb
Episode 42612th May 2026 • Student Loan Planner • Travis Hornsby
00:00:00 00:18:22

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What happens when forgiven student debt becomes taxable income again? That’s the “tax bomb” we’re breaking down this week — why it’s coming back, who could get caught by surprise and what you can actually do about it (even if Congress keeps punting the ball down the road). We’ll get into 20- and 25-year forgiveness for private-sector folks, insolvency exclusions and why the whole mess falls hardest on servicers and borrowers.

We also talk about the real-world impact of recent rule changes, state-level quirks and my predictions for what might (and might not) change after 2026.

Key moments:

(00:42) Public Service Loan Forgiveness (PSLF) stays tax-free

(02:59) Who needs to worry about the tax bomb

(13:12) Using insolvency exclusions to lower (or wipe out) your student loan tax bill

(16:15) Why we expect Congress to make student loan forgiveness permanently tax-free in the future

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Want more? Check out our other podcast

Starting to think beyond your student loans? Check out our other show, Financially Free Era. It's about what comes next, investing, building wealth, and designing a life you actually want. Find "Financially Free Era by SLP Wealth" in your podcast app.

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122. Beware Hidden Agendas in the Student Loan Industry
00:49:41
121. Student Loan Forgiveness Is Tax-Free Now. Or Is It?
00:42:40
120. Is 2021 a Bubble for Investing?
00:46:59
119. What You Need to Know About Taxes in 2021
00:43:33
118. Will President Biden Block Student Loan Cancelation?
00:45:59
117. The Perfect Income for Peak Happiness as a Student Loan Borrower
00:59:27
116. Is It Ever a Good Idea to Abandon Student Loan Forgiveness?
00:52:00
115. Be a Clydesdale, Not a Pony: Why Borrowers Shouldn't Be Afraid of Taking More Professional Risks
00:45:34
114. My Thoughts on What President Biden's Interest and Payment Freeze Means for the Future of Student Loans
00:57:37
113. Ron Lieber, NY Times Columnist, on Debunking the Complexity of College Education and the Financial Aid System
00:43:50
112. Feeling Frustrated About Your Student Debt? Here's the High Cost of Student Loan Complexity
00:40:06
111. Get Rich When You Can't Predict 2021
00:29:37
110. Save for Your Kids Education Using a 529 College Savings Plan
00:34:24
109. Best Student Loan Repayment Strategy Tips by Occupation
00:42:39
108. Why Your Student Loan Strategy Depends on Where You Live
00:39:50
107. Fighting Debt with Weapons from the Last War
00:48:37
106. Student Loan Repayment, Student Debt Cancelation and Justin Sloan, CFA, CFP, from Buckingham Strategic Wealth on How to Save for Retirement
00:37:24
105. Why The First Degree to Cost $700,000 is Worth It
00:40:20
104. Declining Reimbursement Rates, plus What Trump's Finances Show About Student Loans
00:43:36
103. What President Biden Might Do to Student Loans
00:52:52
102. Why Your Retirement Accounts Don't Matter Nearly As Much As You Think
00:39:20
101. 5 Biggest Risks To Your Finances Post-Election
00:37:12
100. What Will Happen to Student Loans After the Election?
00:41:22
99. Back to Basics: What You Need to Know About IDR Plans
00:37:34
98. Scary Student Loan Stories
00:39:59
97. Your Student Loan Questions Answered
00:42:12
96. Best Tips for Financial Planning: How to Balance Saving, Investing, and Paying off Debt with Student Loans
00:55:55
95. Unique Student Loan Considerations for Physicians
00:41:48
94. The Good, the Bad, and the Ugly About Student Loans and Your Personal Finances
00:44:18
93. How to Love Your Job (Or Leave It) - Despite your Debt
00:44:08
92. Best and Worst Jobs During the Pandemic
00:50:38
91. How Student Loans are like being a California or New York resident
00:51:22
90. What the Trump Student Loan Order Means
00:39:22
89. Pandemic Recession Investing Q&A
00:43:54
88. Should You Stay in a Job Because of Loan Forgiveness?
00:36:08
87. How can you invest when everything is so expensive?
00:48:21
86. Compassion Fatigue, Moral Distress, and Mental Health in Veterinary Medicine
00:45:00
85. The Coming Chaos in Student Loan Servicing
00:48:30
84. Nicole Hatcher on Being a PA and Systemic Racism in Medicine
00:53:59
83. What does the future of student loan refinancing look like after the pandemic?
00:43:26
82. The Danger of Becoming an Accidental Landlord
00:45:19
81. How to Plan Pre-Student Loan Debt
01:07:59
80. Shrinking the Racial Wealth Gap, with Lauryn Williams
01:04:12
79. The mental health challenges of student loans
00:53:11
78. The Double Debt Loophole for Married Couples Explained
00:43:36
77. What Business Owner Dentists, Vets, Optometrists, and Lawyers Need to Know, with Tom Bodin
00:58:59
76. Paying Nothing, Borrowing the Max, and What this Recession Means for Student Loan Policy
00:56:19
75. Some Good student Loan News (people are still saving money)
00:57:47
74. Your Quarantine Stories
00:56:59
73. Student Loan Default Guide: How to help yourself or your friend
00:58:30
72. Is there any hope for veterinarians? With Diana Care
00:42:22
71. Q&A about the stimulus and what it means for you
00:39:59
70. Conquering anxiety and depression after 300k of film school debt, with Stephanie Bousley
00:43:24
69. Getting relief on your loans during economic disaster
00:55:16
68. Coronavirus, Asymmetric Bets, and Your Questions
00:38:54
67. Tax Guide for Student Loan Borrowers
00:53:35
66. Your interest is not nearly as bad as you think
00:55:14
65. Avoid Fraud and Fake Experts with Jantz Hoffman
01:02:42
64. Election Hot Takes with Lauryn Williams
00:58:29
63. Student Loan Travisties
00:45:54
62. How Money From Your Employer For Loans Can Hurt You
00:32:13
61. Student Loan Hacks You Haven't Heard Before with Meagan Landress
00:43:34
60. How Taxes and Student Loans Get Weird in a Hurry with Ben Nanney
00:52:38
59. Course Launch Recap
00:38:29
58. Go from Six Figure Debt to Six Figure Net Worth in 2020
00:33:36
57. You Could Work Twice as Hard or Learn About Growing Your Assets
00:30:44
56. Why Your Student Loans Don't Matter
00:25:19
55. Debating the Future of PSLF and Student Loans with Dr. Ben White
00:47:00
54. Top Gifts for Student Loan Borrowers
00:32:25
53. How to Solve the Student Loan Crisis According to Borrowers
00:39:12
52. Becoming a PA with Savanna Perry
00:42:39
51. Bad Decisions by Physicians with Ryan Inman
00:55:43
50. Reflections After 3 Years of Helping Borrowers with Student Loans
00:40:39
49. Physician on FIRE Shares Secrets of Early Retirement
00:50:26
48. How the economy impacts what rates you get on student loan refinancing
00:41:47
47. Can You Retire Before Mom and Dad? With Robert Berger
00:45:40
46. Why you should start a business (yes, really)
00:37:59
45. Is this the best time ever to be a dentist? With Reese Harper
00:55:18
44. Why do financial advisers give lousy student loan advice?
00:38:47
43. The first couple in history to BOTH get tax free loan forgiveness
00:48:00
42. The Refinancing Ladder approach
00:45:36
41. 26 ReasonsThat Make Your Student Loan Plan Unique
00:42:18
40. How Vanguard's website (and roboadvisors) cost America billions of dollars
00:36:50
39. Your Questions Answered (our voicemail works!)
00:40:49
38. Case study on whether parents should help pay for graduate school
00:53:04
37. Only sweat the big stuff (because the small stuff doesn't matter)
00:40:10
36. 10 most common student loan servicer mistakes
00:41:24
35. Is your savings rate good or bad?
00:49:21
34. Private Loans: When you should use them
00:51:00
33. Explaining 529s with Collegebacker CEO Jordan Lee
00:47:10
32. Dr. Zachary Kingsberg on starting your own practice
00:35:42
31. Real Estate Investing with lots of Student Loans: Is it possible?
00:50:44
30. The Risk of PSLF and Taxable Forgiveness is Vastly Overestimated
00:40:54
29. Student Loan Success (and carnage) Stories
00:41:29
28. Resident physician tips on optimizing loan forgiveness
00:52:49
27. Robert Farrington on the Fastest Ways to Get Out of Debt
00:50:24
26. SLP Consultants Debate Shady (and Legit) Payment Strategies
00:38:50
25. Don't be an investing disaster like most student loan borrowers
00:49:18
24. What dental, medical, veterinary and pharmacy residency programs are worth it?
00:40:23
23. Mark Stucker shares secrets of going to undergrad debt free
00:44:14
21. National security professional reveals personal FedLoan trainwreck
00:54:39
21. Alex reveals the financial life and challenges of a marriage and family therapist
00:51:44
20. Becoming a millionaire with six figures of student debt
00:44:58
19. Tim Ulbrich of Your Financial Pharmacist discusses the future of the pharmacist profession
00:39:18
18. Justin Harvey shares his passion for helping student loan borrowers
00:43:44
17. Moving to Dubai with massive dental school debt with David Donelson
00:46:46
16. Lauryn's path from Olympic gold medalist to student loan consultant
00:52:43
15. How to deal with the tax bomb from vet school with Amanda Ensor
00:46:29
14. Can you work part time (or not at all) with more than $100,000 of student loans?
00:44:09
13. Law school in the most expensive city in America with Jessica Cox
00:48:27
12. Student Loan Hacks if you're over 50
00:43:29
11. Military careers to lower law school debt with Eric Meissner JD
00:35:24
10. Are Student Loans good debt or bad debt?
00:41:44
9. Our first client veterinarian Elaina Petrone shares how it all started
00:51:29
8. How the FIRE movement could help you as a six figure student loan borrower
00:48:09
7. The Cost of Becoming a Naturopath with Katelyn Bailey
00:50:29
6. The Breadwinner Loophole with pediatric dentist, Dr. Quinn Yost
00:50:59
5. Where do people lose most of their money? | Robert Bertman
00:44:59
4. Paying down debt from nursing school with Jenna
00:39:59
3. Dealing with Dental School Debt | Samantha the Debtist
00:47:59
2. The PSLF Snowball Effect
00:34:29
1. Introducing: The Student Loan Planner Podcast
00:13:00