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Tax Relief for Post-Graduation Student Loan Repayments in Specific Areas

This act aims to exclude post-graduation student loan repayment grants from taxable income. It applies to scholarship programs run by non-profit organizations that require recipients to live and work in areas with lower educational attainment rates. This can help citizens reduce their financial burden from education while supporting local community development.
Key points
Money received for student loan repayment after graduation will not be counted as taxable income.
These programs must be run by charitable organizations and require recipients to live and work in areas needing skilled workers.
The act encourages graduates to settle and work in less developed areas, supporting their economic growth.
You cannot claim a double benefit by also deducting student loan interest if the repayment was tax-exempt.
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Additional Information
Workforce Development Through Post-Graduation Scholarships Act of 2021
Print number: S 2191
Sponsor: Sen. Peters, Gary C. [D-MI]
Process start date: 2021-06-23