LOS ANGELES — Governor Gavin Newsom on Saturday called on the California Legislature to act quickly to prevent student borrowers from having to pay state income taxes on up to $20,000 in federal debt forgiveness .
The Biden administration announced a sweeping, one-time loan cancellation program in August that would erase thousands of dollars of direct federal debt. Borrowers who meet the program’s income limits — less than $125,000 for an individual or $250,000 for a couple — will have up to $10,000 in debt forgiven, or up to $20,000 if they received a federal Pell grant.
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