HARRISBURG, Pa. (WHTM) — Governor Tom Wolf joined Senator Katie Muth in Harrisburg Friday morning to announce that Pennsylvanians will not have to pay state income tax on the student loan debt relief they receive from the federal Public Service Loan Forgiveness (PSLF) Program and the Pennsylvania Student Loan Relief for Nurses (SLRN) Program.
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According to the press release from the governor’s office, those who qualify for the programs could potentially save thousands of dollars in state tax. Student loan forgiveness is not considered taxable income at the federal level, and Gov. Wolf’s announcement will bring Pennsylvania in line with a majority of other states.
“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.”
According to an example provided in the press release, a Pennsylvanian with $50,000 in student loans forgiven through one of the programs will not have to pay $1,535 in state income tax.
To learn more about the PSLF program, click here, and to learn more about the SLRN program, click here. Or, to view the revised tax bulletin posted today to clarify language around student loan forgiveness, click here.