Full-time workers at nonprofit organizations who had their student loan debt forgiven through one of two government programs will not have a large state income tax bill to deal with when that debt is forgiven.

Gov. Tom Wolf announced at a news conference Friday that those who received student debt forgiveness through the state Student Loan Relief for Nurses program and the federal Public Service Loan Forgiveness program will be eligible to have state taxes on the amount forgiven removed.

Previously, only Pennsylvania and Missouri charged income tax on forgiven student loans.

Wolf said teachers, first responders, nurses and others considered heroes during the coronavirus pandemic and every day should not have to come up with thousands of dollars when their student loan is forgiven.

“Pennsylvania stands by the people who do so much to stand up for others,” Wolf said. “We need to make sure financial burdens do not keep our best and brightest from accepting these positions.”

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