IF the excelsior scholarship in New York is really a forgivable loan since it converts to a loan if you do not maintain residency and employment, so how do you report it?

The Excelsior Scholarship in New York is revocable if you do not meet the residency requirement. It becomes a no-interest loan which you will then be required to pay back.

If and when the scholarship converts to a loan, you would be able to amend your prior tax returns to take the education credit as if the funding of your educational expenses were a loan at that time. If the tax years to be amended are beyond the 3-year time frame, you would not be able to receive any tax benefit.