Student loans in Texas
Texas levies no personal income tax on wages, so a forgiven student loan balance is not taxed by the state. The aid agency, and what it costs to attend college in Texas.
Will Texas tax a forgiven balance?
No
Texas levies no personal income tax on wage and salary income, so a forgiven balance cannot be taxed as income here.
That covers the state side only. Income-driven forgiveness is federal taxable income from 2026 wherever you live. Public Service Loan Forgiveness is not taxed federally either.
State aid
Texas administers its student aid through Texas Higher Education Coordinating Board. Grant programmes, deadlines and residency rules come from them rather than from the federal system, and they are the right first call about anything the federal pages do not answer.
Link last requested on , which answered 200.
What it costs to attend in Texas
- 136Institutions on this site
- $23,482Median published cost of attendance, a year
Sources
- Court actions affecting income-driven repayment, U.S. Department of Education. Checked on . Backs that the federal exclusion covered discharges to 31 December 2025 and was not extended; that Public Service Loan Forgiveness remains federally tax-free.
- College Scorecard, most recent institution-level data, U.S. Department of Education. Figures describe 2025-26. Collected automatically on , so nobody checked this row by hand.