Governor Tom Wolf reminded Pennsylvanians working in the public service sector of available student loan forgiveness programs ahead of the new year, including the Pennsylvania Student Loan Relief for Nurses Program, which will accept applications beginning January 2022.
“As a commonwealth and as a nation, we can’t afford for astronomical student loan debt to keep talented people from choosing a career in public service. Student loan forgiveness programs demonstrate how much we value the Pennsylvanians, including our nurses, teachers and firefighters, who have chosen careers that make a difference in our communities,” said. Gov. Wolf. “These programs are a way to thank individuals for their tireless efforts and encourage more students to follow these career paths. Opportunities for loan forgiveness are available now, and we must spread the word so eligible Pennsylvanians can take advantage of these crucial programs.”
Beginning January 2022, the Pennsylvania Higher Education Assistance Agency will take applications for the Pennsylvania Student Loan Relief for Nurses Program. The program was developed to support nurses who have worked and continue to work tirelessly to fight the COVID-19 pandemic. Awardees will receive student loan relief up to $2,500 for each year of work for no more than three years, with a maximum benefit of $7,500. To learn more and ensure interested participants receive up-to-date information on the program, visit the program website here.
“As a nurse, I was proud to advocate for this funding and I’m excited to be working with Governor Wolf and PHEAA to launch this student loan relief program,” said Senator Maria Collett. “For Pennsylvania’s nurses, COVID-19 has made an already challenging and stressful job exponentially harder; this program is a great first step to better support them and keep them in the profession.”
Additionally, last week, Gov. Wolf announced that the commonwealth will not tax student loan forgiveness from the federal Public Service Loan Forgiveness Program and the Pennsylvania Student Loan Relief for Nurses Program. This decision aligns with the federal government and brings Pennsylvania in line with most states. It also removes a burden from student borrowers who receive loan forgiveness in Pennsylvania by ensuring that they aren’t surprised by a large tax bill the year they receive their loan forgiveness.
The Department of Revenue issued a revised tax bulletin to clarify the language around student loan forgiveness and make clear that loan forgiveness through these programs are not considered taxable income.
“The last 22 months battling the pandemic have put significant strain on the employees of the public service sector here in Pennsylvania and nationwide,” said Gov. Wolf. “By supporting our fellow Pennsylvanians, we keep the commonwealth competitive against other states and further prosper by ensuring the best and brightest minds call Pennsylvania home.”
