program and demand repayment of the amount of the loan as
of the date of the conviction.
(v) Recipients who fail 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.
(c) Limitation.--A loan forgiveness award under this act
shall not be made for a loan that is in default at the time of
application. Loan forgiveness provided under the provisions of
this act shall not be concurrently awarded to a recipient of
another Commonwealth-provided loan forgiveness program.
Section 4. Tax applicability.
Loan forgiveness repayments by a student shall not be
considered taxable income for purposes of Article II of the act
of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
Section 5. Annual report.
(a) Development of report.--The agency shall publish a
report by October 1, 2021, and each year thereafter, for the
immediately preceding fiscal year. The report shall include
information regarding the operation of the program, including:
(1) The number and amount of contracts executed and
renewed for qualified applicants.
(2) The number of defaulted contracts, reported by
cause.
(3) The number of full-time staff employees of school
entities participating in the program, reported by type of
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