With the federal government’s ability to forgive student debt up in the air, experts say it would behoove borrowers to explore the many state-level relief programs available.
“Most states have one, especially if you’re in health care,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit that helps borrowers navigate the repayment of their debt.
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A student loan forgiveness initiative for nonprofit and hospital nurses in Minnesota has gotten some attention of late, because Vice President Kamala Harris‘ running mate Tim Walz signed it into law last year. Under that program, registered nurses who work at a nonprofit or public hospital in Minnesota are eligible for up to $12,000 in student debt relief.
Different states have programs focusing on various fields.
“There’s a bunch for teachers and public defenders, and some oddball ones,” Mayotte added. “And some of them are really generous.”
What’s happening with federal forgiveness programs
Currently, the federal government’s ability to forgive student debt is in jeopardy.
The Biden administration’s new repayment Saving on a Valuable Education plan, known as SAVE, that leads to expedited forgiveness for certain borrowers is on hold amid a barrage of Republican-led legal challenges. Biden’s broad-based forgiveness effort could be finalized this fall, but is likely to end up in court, too.
Should former President Donald Trump win in November, his record shows an opposition to loan forgiveness for students.
In the meantime, here’s what to know about student loan forgiveness opportunities at the state-level.
State forgiveness often based on occupation
Most state-level student debt forgiveness programs offer relief to borrowers in specific occupations, said higher education expert Mark Kantrowitz.
“So they should look for forgiveness based on their job, especially for their state,” Kantrowitz said.
For example, in California, licensed mental health professionals who work at certain facilities may be eligible for up to $15,000 in student loan assistance. (The next application deadline is Aug. 26.)
The Maine Dental Education Loan Repayment Program offers a total of $100,000 in student loan repayment assistance to dentists in underserved areas of the state.
One benefit of the state loan forgiveness programs, Mayotte pointed out, is that private student loans are often eligible. The federal government, meanwhile, excludes private loans from its relief.
Other state programs may offer forgiveness based on your finances rather than your occupation.
In New York, the Get On Your Feet Loan Forgiveness Program, rolled out in 2015, allows certain residents to get loan forgiveness for up to 24 months of their payments. Among other qualification requirements, borrowers must have an adjusted gross income of less than $50,000 a year.
The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.