Pennsylvania Exempts Canceled Student Loans From Taxes

HARRISBURG (AP) — Pennsylvania will no longer impose state income taxes on public sector workers and nurses who receive student loan forgiveness from two major programs. The Wolf administration made the change on Friday. It impacts the federal Public Service Loan Forgiveness Program, which provides debt relief to teachers, social workers, military members and other public servants. It also affects borrowers in the Pennsylvania Student Loan Relief for Nurses Program, a recent pandemic-era initiative to forgive up to $7,500 in student loan debt incurred by state-licensed nurses.


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