Getty Images Student loans are not taxable income, but be aware that other types of aid are treated differently. Key Takeaways Student loans don't count as income because borrowers are ultimately responsible for paying the money they received back. While forgiven student loans didn't used to be taxed, starting in 2026 they will be. Scholarships or grants used to pay room and board are also taxable. Many students borrow money or accept grants and scholarships to help pay for higher education.