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 under specific forgiveness programs, are exempt from taxation, many other forms of discharged student loans remain taxable. This includes discharges that occur after the 20 or 25-year repayment period under Income-Driven Repayment Plans, which can create a financial burden for borrowers who have their loans forgiven.

The resolution highlights the need for a reassessment of the tax implications surrounding discharged student loans, particularly emphasizing that borrowers who have their loans forgiven should not be subjected to federal income tax on the forgiven amounts. It calls for the permanent exclusion of all discharged student loans from taxation, including those discharged due to death or disability, which currently have a temporary exemption until 2026. The resolution will be communicated to New Jersey's congressional representatives, the Secretary of the U.S. Treasury, and the Commissioner of Internal Revenue.