Student Loan Tax Bomb The Student Loan Tax Bomb has entered our vernacular with the introduction of the Income Driven Repayment (IDR) options – IBR, PAYE and REPAYE. The tax bomb is an affectionate (not really) term for the tax liability resulting from any student loan forgiveness realized with an IDR option. In this blog post, I’ll address why this could be a good thing, how to manage & invest for this event and how delaying your investment influences both the future value