INDIANAPOLIS — loan forgiveness may come with a price tag for Hoosiers at tax time.

The Indiana Department of Revenue says they will tax student debt relief as income, similar to many other states. According to Indiana law, state residents are required to list their forgiven loans as taxable income.

Indiana’s tax rate is 3.23%.

Hoosiers receiving $10,000 in loan forgiveness will likely pay up to $323 in income tax. Pell Grant recipients could owe around $646.

In addition, residents in the state of Indiana must also pay additional county taxes on the forgiven loans.