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?

[KurtL1]

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.