Student Loan Interest

It depends - why was it forgiven?

Normally cancellation of debt is considered taxable income. But not always.

cancelled due to a disability claim.

You really have to give much more information. Again, the general rule is that any debt cancelled is considered taxable income, unless there is a rule that makes it non-taxable. You have not given any information that would give any indication that the situation would not be taxable.

Student loans cancelled due to the Death and Disability Discharge Section 437(a) of the Higher Education Act of 1965 are taxable.

I should have added that while the cancellation due to disability triggers taxable income, you may still qualify for tax-free cancellation if your loan was under one of the forgiveness loan programs. E.g., if you had committed to work for 5 consecutive years in a low income elementary or high school under the Teacher Loan Forgiveness Program and you had only worked for a few years before you became disabled, then you will be considered to have fulfilled your obligation to the program.

I should have added that while the cancellation due to disability triggers taxable income, you may still qualify for tax-free cancellation if your loan was under one of the forgiveness loan programs. E.g., if you had committed to work for 5 consecutive years in a low income elementary or high school under the Teacher Loan Forgiveness Program and you had only worked for a few years before you became disabled, then you will be considered to have fulfilled your obligation to the program. ====== Or if one is insolvent - i.e. the general rule for ignoring cancellation-of-debt income. Bankruptcy doesn't work here because there is a special rule addressing student loan debt.