Filed taxes only to receive an unexpected 1099-C, $10K code F, for state student loans, afterwards. Think I may not owe federal but may owe state, currently NC.

Backstory

The Georgia Student Finance Commission had 1% loans I qualified for back when I attended college in 2011-2015. Due to deferment from school/grad school, they only were paid on a few years in total.

Apparently, during that time, only 30% of the loans they had on their books were not in some type of delinquent status, which mine were being paid so. Or delinquent. They wanted these loans off their books because they cost more to service than the interest and sent a letter for each loan I had saying “pay this amount $0.2/$1.0” and they would cancel the rest. I may need to look up the exact language if I can dig up the offer letter they sent.

Question

I sent the money and they canceled about $10K. I am trying to figure out if I would owe the fed ,but am fairly confident I would owe state taxes in NC.

I think America rescue plan means it was forgiven in 2025 as the event date, so it would be within the timeframe and would qualify as the lender was a state entity.

I know we wouldn’t be considered insolvent, we are fortunate enough to have a positive net worth.

Currently my plan is to wait for my “accepted returns” and file amended returns with it included. I’m just trying to gauge what to expect, as sub 5% state income on 10k is a lot different than a 20-24% rate on it. We had minimal refunds since state is flat tax, and we adjusted our withholding to avoid owing but not get a massive refund.

Thank you all