loan forgiveness

Loan forgiveness is a process where a borrower’s remaining debt is canceled or reduced before they fully repay it. This often applies to student loans, where, after meeting certain requirements—such as working in specific fields or making consistent payments over time—the government or lender agrees to forgive the rest of the loan. It essentially means you no longer owe the forgiven amount. Loan forgiveness can help reduce financial burdens, but it may also have tax implications, as the forgiven amount could be considered taxable income.