ST. PAUL, Minn. – Minnesotans who take advantage of the Biden college loan forgiveness plan will need to pay state taxes on the money, according to the state Revenue Department. Borrowers could face up to $985 in additional tax liability if they receive the maximum $10,000 in relief. The liability would be more for Pell grants, which are eligible for $20,000 in forgiveness. There would be no federal taxes, however. Minnesota is one of five states that would tax the relief as income.
