Tens of millions of Americans are eligible for student loan forgiveness but Baystate residents may still have to pay state taxes. According to the tax foundation, Massachusetts is one of 13 states in the country where you might have to pay taxes but Governor Baker said it’s not set in stone. The reason why you might be taxed by the state on this is that when you have debt forgiven it can count as income. Last week President Biden announced student loan borrowers can have $10,000 in federal student loans forgiven or $20,000 if they’re a Pell grant recipient.