Dental Loan Repayment Assistance Act of 2025
The Dental Loan Repayment Assistance Act of 2025 would change the tax treatment of certain federally subsidized student loan repayments for dental school faculty. Specifically, it would add loan repayments made under the Dental Faculty Development and Loan Repayment Program (funded through grants or contracts under section 748(a)(2) of the Public Health Service Act) to the list of loan-repayment benefits that are excluded from a recipient’s gross income for federal income tax purposes. In practical terms, eligible dental faculty receiving these repayments would not have those payments counted as taxable income. The bill also renames the relevant section of the tax code to cover “certain federal and state loan repayment programs,” and it requires a Government Accountability Office (GAO) review. The GAO would assess how dental providers and faculty participate in programs funded by the Dental Faculty Development and Loan Repayment Program, including whether participants remain full-time faculty and continue practicing in dental clinics after receiving funding. The tax exclusion would apply to amounts received in taxable years beginning after enactment.
Key Points
- 1Expands the tax exclusion under Section 108(f)(4) of the Internal Revenue Code to include loan repayments made under a loan repayment program that receives a grant or contract under section 748(a)(2) of the Public Health Service Act.
- 2Renames the heading of the related provision to reflect “certain federal and state loan repayment programs.”
- 3Effective date: applies to amounts received in taxable years beginning after the enactment date.
- 4GAO oversight requiring a report on participation and retention of dental providers and faculty in the Dental Faculty Development and Loan Repayment Program, including whether recipients stay full-time faculty and practice in dental clinics after funding.
- 5Purpose is to bolster recruitment and retention of dental school faculty by increasing the after-tax value of loan-repayment benefits.