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Are Loan Repayment and Scholarship Program tax free?

April 26, 2017Free loan program repayment scholarship tax

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Are Loan Repayment and Scholarship Program tax free?

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The “American Jobs Creation Act of 2004” (H.R. 4520, P.L. 108-357), enacted on October 22, exempts NHSC loan repayment awards from federal income taxes. Scholarship expenses paid by NHSC, except for the monthly stipend, are also federal tax free. Since the laws for State income taxes vary from state to state, please contact your tax preparer or tax advisor to verify the taxability of NHSC/LRP funds.