The resolution urges Congress to amend the federal tax code to exclude all forms of discharged student loans from federal income taxation. Currently, while certain discharges, such as those for teachers and public service employees or those due to death or disability (for a limited time), are exempt from taxation, many borrowers still face tax liabilities on forgiven loans, particularly those discharged after long repayment periods under Income-Driven Repayment Plans. This creates a financial burden for individuals who have their student loans forgiven, as they are required to pay income tax on the amount discharged.

The resolution emphasizes that eliminating the tax on discharged student loans would significantly benefit borrowers, particularly those in financial distress. It calls for a reassessment of the tax code regarding student loan discharges and advocates for the permanent exclusion of all forms of discharged student loans from federal income tax. The resolution will be communicated to New Jersey's congressional representatives, the Secretary of the U.S. Treasury, and the Commissioner of Internal Revenue to promote this legislative change.