Page 48 - Other Income for Individuals

Cancelled Debt
Student Loan
 Certain student loans contain
a provision that all or part of
the debt incurred to attend
the qualified educational
institution will be canceled if
you work for a certain period
of time in certain professions
for any of a broad class of
employers.
 You don’t have income if your
student loan is canceled after
you agreed to this provision
and then performed the
services required.
 To qualify, the loan must have
been made by:
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Student Loan
 The federal government, a state
or local government, or an
instrumentality, agency, or
subdivision thereof;
 A tax-exempt public benefit
corporation that has assumed
control of a state, county, or
municipal hospital, and whose
employees are considered
public employees under state
law; or
Student Loan
 An educational institution:
a. Under an agreement with an
entity described in (1) or (2)
that provided the funds to the
institution to make the loan, or
b. As part of a program of the
institution designed to
encourage its students to serve
in occupations with unmet
needs or in areas with unmet
needs and under which the
services provided by the
students (or former students)
are for or under the direction
of a governmental unit or a
tax-exempt organization
described in section 501(c)(3).
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