Bill > HB1653

This bill amends the Mississippi Code of 1972 to exclude forgiven, cancelled, or discharged federal student loan debt from the definition of "gross income" specifically for loans forgiven under the Public Service Loan Forgiveness (PSLF) Program. The PSLF Program is a federal program that forgives remaining student loan debt for borrowers who work full-time for government or non-profit organizations and make 120 qualifying monthly payments. By adding this provision to the state tax code, Mississippi will ensure that individuals who have their student loans forgiven through this program will not have to pay state income tax on the forgiven amount, which could potentially save eligible borrowers thousands of dollars in tax liability. The bill will take effect on July 1, 2025, giving state tax authorities time to implement the new provision and update their systems accordingly.

Budget and Finance

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB1653.xml