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Pennsylvania exempts canceled student loans from taxes

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(Commonwealth of Pennsylvania)HARRISBURG - 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 announced Friday.The change impacts participants in the federal Public Service Loan Forgiveness Program, which provides debt relief to teachers, social workers, military members and other public servants, and 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.Most other states and the federal government do not subject student loan forgiveness to taxation, but state lawmakers who pushed for the change said the.

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