PA Removes State Income Tax On Student Loan Debt Relief For Certain Programs

Image by the Pennsylvania Governor's Office / flickr.com

HARRISBURG, PA. (WENY) – Pennsylvania Governor Tom Wolf announced that residents no longer have to pay state income tax on student loan debt relief from the federal Public Service Loan Forgiveness (PSLF) Program and the Pennsylvania Student Loan Relief for Nurses (SLRN) Program

Teachers, firefighters, and nurses, who receive debt relief from the PSLF or SLRN programs, are among those that no longer have to worry about paying state income tax on student loan forgiveness.







Gov. Wolf says nurses and public servants are the ones making the biggest difference, but their pay does not reflect their impact.

And student debt only places an additional burden on those who are already underpaid.







“As a commonwealth, as a nation, we cannot afford for astronomical student loan debt to keep talented people from choosing to serve as teachers or firefighters or nurses. We need to make sure that financial burdens do not keep our best and brightest from taking on some of these most important jobs,” said Gov. Wolf.

The decision comes at a time when many public servants and nurses continue to be overworked and underpaid, especially as COVID-19 cases continue to rise.













“Many heroic nurses in our state have worked tirelessly to fight COVID-19, to fight through this pandemic, and we want to help them continue in the nursing profession by relieving some of the burden on student loans,” said Gov. Wolf.

Wolf also says it also removes an immense burden from student borrowers who receive loan forgiveness by ensuring that they aren’t surprised by a large tax bill the year they receive their loan forgiveness.

Student loan forgiveness is not considered taxable income at the federal level. Gov. Wolf’s decision brings Pennsylvania in line with the majority of other states.

 

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