About 3 million student loan borrowers could face a $12,000 tax penalty on debt relief, a group warns.

Borrowers who get relief over the next decade may see their tax bills triple, reports say.

The risk comes from federal rules that can treat forgiven debt as taxable income.

Affected borrowers could owe an average of about twelve thousand dollars.

State tax rules will add to the burden in some regions.

Louisiana borrowers face the biggest “tax bomb” because of state tax codes, the article says.

Financial advisors recommend reviewing forgiveness timelines now to reduce future liabilities.

Policymakers are weighing possible legislative changes to protect vulnerable households.

Read the full article for more details on the student loan tax risk.