In 2021, Susan borrows from the U.S. Department of Education (ED) pursuant to the Direct Loan Program to finance her
attendance at an institution of higher learning. In 2023, when the balance of her outstanding Direct loans is [tex]$20,000,
Susan establishes as a defense against repayment within the meaning of the Higher Education Act of 1965 that the school
misled her and that its actions would give rise to a cause of action against the school under applicable state law. ED cancels
Susan's outstanding student loan and reports the discharge to the IRS on Form 1099-C - Cancellation of Debt. Under the
Tax Cuts and Jobs Act, Susan must include what amount of the cancellation of debt in her gross income on her income tax
return?
OA. $[/tex]0
OB. [tex]$5,000
Oc. $[/tex]10,000
OD. $20,0