FOR IMMEDIATE RELEASE

October 21, 2022

Gov Wolf Reassures Pennsylvanians Applying for Federal Student Loan Forgiveness They Will Not Be Taxed by State

Harrisburg, PA – As Pennsylvanians begin applying for up to $20,000 in student loan forgiveness under President Joe Biden’s Student Debt Relief Plan, Governor Tom Wolf today reminded them that they will not be taxed by the state for the relief.

“Student loan debt holds us all back. Individuals, families, and the commonwealth as a whole. President Biden’s Student Debt Relief Plan is a weight lifted off of shoulders and we will not burden Pennsylvanians who benefit from this relief with taxes at the state level,” said Gov. Wolf. “Congratulations to the 1.7 million Pennsylvanians eligible for this opportunity. I encourage everyone eligible to apply so that you can breathe easier and chase your dreams.”

The governor took action to ensure Pennsylvanians aren’t taxed by the state on student loan relief in December 2021. At the time, the programs providing relief that wouldn’t be taxed included the federal Public Service Loan Forgiveness Program and the Pennsylvania Student Loan Relief for Nurses Program.

If Governor Wolf had not taken this action, Pennsylvanians receiving $20,000 in necessary student loan relief would be faced with a $614 income tax bill.

In Pennsylvania, there are 1,719,800 borrowers who are eligible for debt relief, including 988,800 who are eligible for $20,000 in debt relief, and 731,000 who will have their federal loans completely forgiven, according to the federal Department of Education (DOE).

Pennsylvanians are encouraged to apply for this opportunity online at studentaid.gov/debt-relief/application. The application is available now and the deadline to apply is December 31, 2023.

MEDIA CONTACT: Elizabeth Rementer, ra-gvgovpress@pa.gov, 717-783-1116

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