revoked the award recipient's license to practice.
(5) An award recipient who fails to begin or complete
the obligations contracted for shall pay to the agency the
amount of the loan received under the terms of the contract.
Providing false information or misrepresentation on an
application or verification of service shall be deemed a
default. Determination as to the time of the default shall be
made by the agency. The award recipient and the agency shall
make every effort to resolve conflicts in order to prevent a
breach of the agreement.
(f) Agreement enforcement.--Notwithstanding 42 Pa.C.S. ยง
8127 (relating to personal earnings exempt from process), the
agency may seek garnishment of wages of an award recipient who
fails to comply with the agreement under subsection (d) for the
amount of student loan forgiveness provided to the award
recipient.
Section 5. Tax applicability.
Student loan forgiveness received under this act shall not be
considered taxable income for purposes of Article III of the act
of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
Section 6. Annual report.
(a) Development of report.--By September 1, 2021, and each
September 1 thereafter, the agency shall compile a report
regarding the operation of the program for the immediately
preceding fiscal year. The report shall include the following
information:
(1) The number and amount of student loan forgiveness
agreements executed and renewed for eligible individuals.
(2) The number of defaulted student loan forgiveness
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