The-Tax-Lady
Level 9

Is it a Parent Plus loan? If so, I would say the parents, who are the actual borrowers, would report the 1099C on their return. 

Student loans are tough to cancel, is it a private loan, not Federally backed? What was the code for the cancelled debt and is the box checked that the debtor is personally liable?

Try to work up an Insolvency Worksheet to eliminate the debt from being taxable.