Dental Loan Repayment Assistance Act of 2025
H.R. 1758, the Dental Loan Repayment Assistance Act of 2025, would expand the federal tax treatment of certain federally subsidized loan repayments. Specifically, it amends the Internal Revenue Code to exclude from gross income loan repayments made under a broader set of loan repayment programs for dental school faculty, including those funded through grants or contracts under section 748(a)(2) of the Public Health Service Act (the Dental Faculty Development and Loan Repayment Program). In practical terms, eligible dental faculty receiving such subsidized loan repayments would not owe federal income tax on those repayments. The change is prospective, applying to amounts received in taxable years beginning after enactment. The bill also requires a GAO review and report analyzing participation and retention of dental providers and faculty in areas and schools funded by the DFDLRP, including whether recipients remain full-time faculty and practice in dental clinics associated with dental schools, hospitals, or community-based sites after receiving funding.
Key Points
- 1Expands the tax-exclusion: The bill broadens the exclusion from gross income under IRC 108(f)(4) to include loan repayments under a federal loan repayment program funded by a grant or contract under section 748(a)(2) of the Public Health Service Act (Dental Faculty Development and Loan Repayment Program), in addition to existing programs.
- 2Naming and scope update: The heading in IRC 108(f)(4) is expanded from “Payments under national health service corps loan repayment program and certain state loan repayment programs” to “Certain federal and state loan repayment programs,” explicitly enabling inclusion of the dental faculty program.
- 3Effective date: The change applies to amounts received in taxable years beginning after enactment of the bill.
- 4Oversight provision: Requires the Comptroller General (GAO) to report to appropriate Congressional committees on participation in the DFDLRP and on whether funded dental providers/faculty remain full-time and continue teaching and practicing in related dental clinics after receiving funding.
- 5Policy purpose: Aimed at recruiting and retaining dental faculty by reducing their after-tax burden on federally subsidized loan repayments, potentially strengthening dental education capacity and access to care.