The start of a new year brings clarity (and some new stress points) for students and families. The IRS has marked the official start of tax season, colleges are taking contradictory steps on tuition, and changes to the tax treatment of student loans and immigration-related tuition rules are beginning to emerge.
Here’s a quick look at the most important stories shaping higher education and student finances this week on January 9, 2026.
🎓 Top headlines at a glance
- The IRS announces the official start of the 2026 tax filing season.
- Grand Canyon University extends its undergraduate tuition freeze again.
- Student loan forgiveness becomes taxable for some borrowers in 2026.
- Virginia is ending in-state tuition for undocumented students after federal action.
1. The IRS announces the start of the tax season: January 26, 2026
the Internal Revenue Service She confirmed that The 2026 tax filing season will begin on January 26when 2025 tax returns will begin being accepted. We’ve warned that processing may be slower this year due to hiring restrictions and recent changes to the tax law.
For students and families, timing is important beyond refunds. Tax returns are used to claim education credits such as the American Opportunity Tax Credit, claim the student loan interest deduction, and provide income statements that feed into financial aid planning for the FAFSA.
➡️ impact: Delays in filing or processing can affect cash flow, education tax benefits, and planning related to the FAFSA. Families anticipating refunds or credits associated with education costs may want to submit documents early and double-check.
2. Grand Canyon University extends tuition freeze to the eighteenth year
Grand Canyon University It announced that it will keep undergraduate tuition fees flat for the 18th consecutive year, continuing a long-standing tuition freeze policy for its on-campus programs. This means tuition in 2026-27 will remain at $16,500 before financial aid.
At a time when many colleges are raising prices or adding new fees, this move provides cost predictability for students already enrolled and those considering admission for the upcoming academic year.
➡️ impact: While a tuition freeze does not eliminate all college costs, it reduces uncertainty. Families comparing schools may weigh expected prices against factors such as graduation rates, program scores and living expenses.
3. Student loan forgiveness becomes taxable for some borrowers
As of January 1, 2026, The federal tax exemption that made most student loan forgiveness tax-deductible has expired. Borrowers whose loans were forgiven under certain income-driven repayment plans may now be in debt Federal income tax On the forgiven amount.
This change does not affect Public Service Loan Forgiveness, which remains tax-exempt under federal law, but could apply to borrowers who reach the end of 20- or 25-year repayment timelines on income-driven repayment plans.
➡️ impact: The forgiven balance can now result in a large tax bill. Borrowers approaching forgiveness should plan ahead and use College Investor’s tax bomb calculator to understand the potential impact.
4. Virginia ends in-state tuition for undocumented students
Virginia is Preparing to end its policy Allowing undocumented students to qualify for in-state tuition at public colleges after legal action taken by the US Department of Justice. This change affects students who previously qualified based on residency or high school attendance in the state.
➡️ impact: Tuition classification can double or triple your college costs. Students and families affected by immigration policy changes may need to reevaluate their college choices, aid options, or transfer pathways.
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