A Department of Education program may forgive student loans for up to 50,000 students of closed Corinthian Colleges, including Everest Institute in Rochester. The IRS has just announced it will not treat that debt forgiveness as taxable income. IRS will also not seek to recover prior year education credits or interest deductions attributed to these loans.
This applies to any taxpayer who took out Federal student loans to finance attendance at a school owned by Corinthian Colleges, Inc. that are discharged under the Closed School discharge process or the Defense to Repayment discharge process.
