Ref: Revenue Procedure 2018-33 (amplifying Rev Proc 2015-57)

When Corinthian Colleges, Inc closed, the Department of Education (ED) estimated that fifty thousand attending students had taken out loans.  American Career Institutes (ACI) was another for-profit college that closed with thousands attending.  The ED is in the process of discharging those student loans under its “Closed School” program.

The IRS has indicated that the students with these discharged loans won’t have cancellation-of-debt (COD) income on their returns.  Additionally, they won’t have to amend and repay prior education tax credits claimed or reverse education loan interest deducted.

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