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Tax-Free Student Loan Repayment for Working in Underdeveloped Communities.

This law exempts specific post-graduation scholarship grants used for student loan repayment from federal income tax. To qualify, recipients must commit to living and working in communities identified as having lower-than-average bachelor's degree attainment rates. This change aims to incentivize skilled professionals to relocate to areas needing workforce development while easing their educational debt burden.
Key points
Money received from qualified non-profit organizations to pay off student loans will no longer be counted as taxable income.
Eligibility requires the recipient to live and work in a designated 'applicable community' (areas with low college degree rates).
Recipients cannot claim a tax deduction for student loan interest if that interest was paid using this tax-exempt grant.
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Additional Information
Print number: 118_S_1757
Sponsor: Sen. Peters, Gary C. [D-MI]
Process start date: 2023-05-30
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Workforce Development Through Post-Graduation Scholarships Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1757.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-05-30.

What are the main provisions?

Key points include:

  • Money received from qualified non-profit organizations to pay off student loans will no longer be counted as taxable income.
  • Eligibility requires the recipient to live and work in a designated 'applicable community' (areas with low college degree rates).
  • Recipients cannot claim a tax deduction for student loan interest if that interest was paid using this tax-exempt grant.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Peters, Gary C. [D-MI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Education Labor