Hi,

I have a question about IBR. I understand that if I enroll in IBR and make payments for 25 years, then the remaining balance will be forgiven. I also understand that this discharge of student debt is taxable. My question pertains to any interest that may accrue during this 25 year period. Since this interest will be forgiven after 25 years along with the principle, does that mean everything is taxable? If this is the case, I could wind up with an astronomical tax bill should my IBR payments fall short of accruing interest. Thanks so much- looking forward to your response