arrow_back Trending Legislation
Share share

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.
article Official text account_balance Process page notifications_active Track this Bill
gavel
Status:
Expired
Record your position for audit.
Why does your vote on bills matter?
It creates raw, undeniable proof. Civic Will provides the permanent data to verify the Government's loyalty towards its citizens (explained here). Start recording it now.
Additional Information
Workforce Development Through Post-Graduation Scholarships Act of 2023
Print number: S 1757
Sponsor: Sen. Peters, Gary C. [D-MI]
Process start date: 2023-05-30