I became totally disabled about 2 years ago. 100% SSDI and 90% VA with unemployability so I collect 100+ %. I also have an Air Force pension. Due to my not being able to work and support our farm (we were losing money), we ended up in chapter 13 bankruptcy with a 36 month pay back. I had $120,000 in student loans forgiven. They were PLUS loans to educate my son and were forgiven in 2010. I was the only person on the loans. I have not been able to find out how the IRS treats the forgiveness. I know there are exempt programs for groups like inner city teachers etc. I would never be able to pay income tax on this amount of money.
Thanks for any educated information on this subject.

Well, when you get the Form 1099-C, then (and only then) will you have to report the income for the $120K in forgiven loans.

However, if the loans were forgiven as part of a federal bankruptcy, then, as a matter of tax law, the income is NOT taxable.