The resolution urges Congress to amend the federal tax code to exclude all forms of discharged student loans from being subject to federal income tax. Currently, while certain types of loan forgiveness, such as those for teachers and public service employees, are exempt from taxation, other forms, including discharges after 20 or 25 years in Income-Driven Repayment Plans, still incur tax liabilities. The resolution highlights the financial burden this creates for borrowers who have their loans forgiven but are then required to pay taxes on the forgiven amounts.

Additionally, the resolution calls for the permanent exclusion of discharged student loans from federal income tax, particularly emphasizing the need to make the current temporary exemption for discharges due to death or disability a permanent fixture in the tax code. By doing so, the resolution aims to alleviate the financial strain on borrowers who benefit from loan forgiveness, thereby supporting those in greatest need of assistance. Copies of the resolution will be sent to relevant congressional representatives and tax authorities to advocate for this change.