The proceeds of loans aren’t generally treated as taxable income unless the loan is forgiven.

Though called a tax credit, it is effectively an income guarantee, paid monthly regardless of whether a family has earned any taxable income.

In 2015, more than 6 million Californians filed for the deduction, reducing their federal taxable income by an average of $18,438, according to the Urban-Brookings Tax Policy Center.

There also may be tax implications to settling your debt—forgiven debt may be considered taxable income.

Meanwhile, those without employer paid health insurance must use taxable income to purchase their own insurance.