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Chloe Receives a Student Loan from a Foundation Which Encourages

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Essay

Chloe receives a student loan from a foundation which encourages students to pursue teaching careers. Under the terms of the loan, Chloe will not have to repay the loan if she teaches in a public school for ten years. What tax issues should Chloe consider?

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Definitions:

Share Dividend

A dividend payment made in the form of additional shares rather than cash payout to shareholders.

Preference Shares

A class of ownership in a corporation with a fixed dividend, having priority over common shares in asset liquidation and dividends.

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