Tax Benefits for Education›2025 Returns›! tax-free treatment if it is canceled because of
Student Loan Repayment Assistance
Publication 970 — Tax Benefits for Education · 2026-10-03 edition · updated 2026-10-04 · United States
Student loan repayments made to you are tax free if you received them for any of the following.
The National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program).
A state education loan repayment program eligible for funds under the Public Health Service Act.
Any other state loan repayment or loan forgiveness program that is intended to provide for the increased
availability of health services in underserved or health professional shortage areas (as determined by such state).
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