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CCH (cch.taxgroup.com) reports:

Forgiven student loan debt was not discharge of indebtedness income to a former student who had completed a period of service following graduation under a repayment assistance program that qualified under Code Sec. 108(f). A Loan Repayment Assistance Program (LRAP) operated by the individual's school refinanced existing loans with new loans that included provisions for forgiving part or all of the graduates' loans if they work for minimum periods of time in qualifying public-service positions. The refinanced loan still qualified as a student loan under Code Sec. 108(f)(2) because it refinanced the same sums originally borrowed as education loans, and the terms of the refinanced loan --requiring a minimum period of employment in a qualifying public service position --met the requirements of Code Sec. 108(f)(1) to qualify for the exception to the Code Sec. 61(a)(12) provision including income from the discharge of indebtedness in the graduate's gross income.
Rev. Rul. 2008-34, 2008FED ¶46,479
Other References:
Code Sec. 108
CCH Reference - 2008FED ¶7010.83
Tax Research Consultant
CCH Reference - TRC INDIV: 60,054.10
CCH Reference - TRC SALES: 12,152.10