- With the fate of federal student loan forgiveness programs uncertain, experts say borrowers should explore the numerous assistance options available at the state level.
- “Most states have (a program), especially if you’re in health care,” said Betsy Mayotte, president of the nonprofit Institute of Student Loan Advisors.
Because the federal government’s ability to forgive student loans is uncertain, experts say it would be wise for borrowers to explore the many available state-level assistance programs.
“Most states have a system like this, especially if you’re in the health care field,” says Betsy Mayotte, president of the Institute of Student Loan Advisors, a nonprofit that helps borrowers pay off their debt.
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An initiative to forgive student loans for nurses in nonprofit and hospital settings in Minnesota has been getting some attention lately because Vice President Kamala Harris’ running mate Tim Walz signed it into law last year. Under this program, registered nurses working in a nonprofit or public hospital in Minnesota are eligible to have their student loans forgiven up to $12,000.
There are programs with different focuses in different states.
“There’s plenty for teachers and public defenders, but there are also a few oddballs,” Mayotte added. “And some of them are really generous.”
What happens to government debt relief programs?
Currently, the federal government’s ability to forgive student loans is at risk.
The Biden administration’s new repayment plan, known as SAVE, which accelerates debt repayment for certain borrowers, is on hold due to a spate of Republican-led litigation. Biden’s broad debt repayment could be completed this fall, but will also likely end up in court.
If former President Donald Trump wins the election in November, he believes he will oppose student debt forgiveness.
In the meantime, here’s everything you need to know about student loan forgiveness options at the government level.
State forgiveness often depends on profession
Most government student debt forgiveness programs offer relief to borrowers in certain occupations, says higher education expert Mark Kantrowitz.
“So they should ask for forgiveness that is appropriate to their work, especially to their state,” Kantrowitz said.
In California, for example, licensed psychologists working in certain settings are eligible for up to $15,000 in student loan assistance. (The next application deadline is August 26.)
The Maine Dental Education Loan Repayment Program provides dentists in underserved areas of the state with student loan repayment assistance totaling $100,000.
One advantage of government debt relief programs, says Mayotte, is that private student loans are often eligible. The federal government, on the other hand, excludes private loans from its relief programs.
Other government programs may provide debt relief based on your financial situation rather than your occupation.
In New York, the Get On Your Feet Loan Forgiveness Program, introduced in 2015, allows certain residents to receive debt forgiveness for up to 24 months. Among other requirements, borrowers must have an adjusted gross income of less than $50,000 per year.
The Institute of Student Loan Advisors maintains a database of student loan forgiveness programs by state.
