Client is totally disabled as of 2008. Student loans in the amount of $95K+ forgiven in 2011 due to disability. 1099-C is from U.S. Department of Education. Question: Is this 1099-C taxable? I can find no regulation that allows exception for debt forgiveness. If Student Loan is forgiven due to working in appropriate fields for the proper time, the forgiven amount is not taxable and no 1099-C will be issued. Any ideas?