Trump is going to be taxing student loan forgiveness costing borrowers $7-12k in new taxes.

The claim can be broken down into several components: 1) Trump is enacting tax changes affecting student loan forgiveness; 2) these changes will cause forgiven student loan amounts to be taxed again; and 3) borrowers could face new tax bills ranging from $7,000 to $12,000. Evidence shows that the American Rescue Plan Act of 2021 made student loan forgiveness tax-free at the federal level through the end of 2025.

However, Trump's 'Big Beautiful Bill' does not extend this tax exemption permanently, meaning forgiven amounts after 2025 could be considered taxable income again.kiplinger.comkiplinger.comTrump Targets Student Loan Forgiveness: Here’s How Taxes and Repayment Could... This reintroduction of taxation on forgiven loans would increase borrowers' tax burdens. Estimates from various analyses suggest that affected borrowers might owe several thousand dollars in additional taxes, with figures around $7,000 to $12,000 cited depending on the amount forgiven and individual tax situations.cnbc.comcnbc.comStudent loan forgiveness may soon be taxed againkiplinger.comkiplinger.comTrump Targets Student Loan Forgiveness: Here’s How Taxes and Repayment Could...

The bill also introduces changes to repayment plans and borrowing limits that could indirectly affect borrower costs. While the exact tax impact varies by borrower income and forgiveness amount, the general effect of increased tax liability on forgiven loans is supported by multiple credible sources. Some nuance exists because certain specific types of loan relief remain tax-free under parts of the bill, but the broad federal exemption is not extended.

Therefore, the claim is largely accurate but depends on timing (post-2025) and individual circumstances.