Q: My name is Sam and i have accumulated over $70,000 in student loan debt over the last 25 years.

A: You haven't posted enough information, and you should see a tax professional. However, the federal government has published on this topic (state taxing authority may have a different view):

"Is the discharge of a student loan for Total and Permanent Disability (TPD) taxable?

Loan balances that are discharged are generally considered income for federal tax purposes and possibly for state

tax purposes in the year they are considered discharged. Under the Total and Permanent Disability Discharge

process, a student loan will be considered discharged at the end of the three-year monitoring period. A discharged

loan amount is generally treated as income and can result in income tax liability, but exceptions are available in

some circumstances. For example, section 108(a)(1)(B) of the Internal Revenue Code generally allows a taxpayer

to exclude a discharged loan from income if the discharge occurs when the taxpayer is considered “insolvent” for

tax purposes. A taxpayer is considered “insolvent” if the taxpayer’s liabilities (including the loan that is being

discharged) exceed the taxpayer’s assets at the time of the discharge. Under this insolvency exclusion, a taxpayer is

able to exclude the amount of discharged debt from income to the extent that the taxpayer’s liabilities exceed the

fair market value of his or her assets. In general, to claim the insolvency exclusion, a taxpayer must submit

information about his or her assets and liabilities to the IRS on a Form 982, Reduction of Tax Attributes Due to

Discharge of Indebtedness (and Section 1082 Basis Adjustment), with his or her Federal income tax return.

For information about this exclusion and discharges of debt in general, borrowers may want to review IRS

Publication 4681 (available at https://www.irs.gov/pub/irs-pdf/p4681.pdf) or consult with a tax professional to

determine how this affects personal taxes. To help a borrower file a tax return correctly, the Department will send

an IRS Form 1099-C after the three-year monitoring period, if the discharged debt is $600 or more. This form will

show the total amount of the discharged debt and the year it is considered to have been discharged. The Department

will also send this information to the IRS."

https://ifap.ed.gov/eannouncements/attachments/ProctectingSSABenefitsforBorrowerswithDisabilities.pdf

Whether or not you are "insolvent" as defined by section 108(a)(1)(B) is unknown.

A: Any time you have a debt that is forgiven, you will owe taxes on what is considered forgiveness of debt income. How much you will owe depends on the state where you live as well as what type of income you have on top of the cancellation of debt income.

A: As the other lawyers have mentioned, you will likely receive a 1099-C (cancellation of debt). If you are considered insolvent at the time of the cancellation you may not have to pay taxes. When you recieve the 1099-C, take it and your other financial information to a good accountant. Do not use one of the pop up places you see around tax time. You will need someone with experience in this area. If you cannot find someone call a local tax attorney and ask them to refer you to someone.