Loan Forgiveness Programs to Be State Tax Free in Pennsylvania

Pennsylvania Governor Tom Wolf announced that Pennsylvanians will not have to pay state income tax on the student loan debt relief they get from the federal Public Service Loan Forgiveness (PSLF) Program and the Pennsylvania Student Loan Relief for Nurses (SLRN) Program. The decision by the Wolf administration will save people eligible for those programs potentially thousands of dollars in state tax. “The point of student loan forgiveness programs for public servants is that these are people who have chosen jobs, often in lower paying fields, because they want to make a difference,” said Gov. Wolf. “It’s wrong to take what should be a blessing and turn it into just another burden.”

Read the release from the state.