Many people with student loans feel relieved that now student loan payments are in line with their income. This potential new tax bill will allow loan holders to limit the monthly payments to what each individual can pay. Then, after about 10-25 years, the government will forgive any remaining balance. However, since there is usually an income tax on forgiven debt, many people will have to pay a large amount of money, fully and immediately. This could cause problems for individuals with debt in six figures.