Even if President Joe Biden’s student loan forgiveness plan fell through, there are still state forgiveness plans available to Americans.
All 47 states and Washington DC have their own student loan forgiveness plans for each state. Many offer more than one. Each program is slightly different, but most are narrowly tailored to a single industry or profession, such as doctors, teachers, police officers, farmers, or people who agree to work where services are in dire need. Yes. You may also need to work for as long as you need it.
Americans may want a backup plan if the Supreme Court rejects Biden’s federal proposal to cancel up to $20,000 in student loans for each eligible borrower. We plan to reopen 60 days after we make a decision about the program, or 60 days from June 30th, whichever comes first. That means repayments are likely to begin this summer.
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However, because these programs are open to residents only, “other aspects of life need to be considered, such as relationships, earning power, entertainment options, and cost of living,” said Bankrate.com’s senior industry executive. Analyst Ted Rossman cautions.
What types of student loan forgiveness plans does the state offer?
47 states and Washington DC offer student debt relief plans, and more than half offer more than one type.You can find a list of these states herebut I’ll highlight a few to give you a taste of what’s available.
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Student Loan Forgiveness Program in Maryland
The state offers three programs.
- For residents who are in debt consolidation, Smart Buy 3.0 If you have $1,000 or more in student loans and a 5% down payment, we’ll repay up to 15% of your home purchase, up to $50,000. The remaining balance must be paid in full by the deadline. About six years ago, the program provided nearly $5 billion in mortgage assistance, $121.7 million in down payments, and $25 million in debt relief.
- J.anet L. Hoffman Loan Assistance Repayment Program For residents who provide public services in Maryland or local governments, or who assist low-income or underserved residents in Maryland nonprofit agencies.
- Maryland Dent Care Loan Assistance repayment system For dentists who treat the state’s most vulnerable populations.
New York Student Loan Forgiveness Program
Empire State offers seven programs.
- Six are for specific professions, including district attorneys, assistant district attorneys, or distressed legal services attorneys. licensed social workers; farmers; child welfare workers; nurses and teachers.
- The final one is for those who graduated from a state school after 2015, earn less than $50,000 a year, live in the state, and are enrolled in certain federal payment plans.
Kansas Student Loan Forgiveness Program
The Sunflower State offers three student loan forgiveness programs aimed at boosting the state’s healthcare industry and rural communities.
- of rural opportunity zone student loan repayment program Provides student loan repayment assistance up to $15,000 for up to five years, as long as you live in one of the state’s rural counties.
- of Kansas Loan Repayment Program Provides up to $25,000 annually to medical, nursing, dental, and behavioral/mental health care professionals who work in a federally designated Health Professional Shortage Area (HPSA) for at least two years.
- of Kansas Bridging Plan (KBP) Foregoing loans to primary care and psychiatric resident physicians. The goal is to encourage them to stay and practice in Kansas after completing their tenure, and KBP will pay at least $26,000 in exchange for her 36-month contract in an eligible state county. Offer dollars. Each year he has up to 14 slots in primary care and 3 slots in psychiatry. According to the state, 85% of KBP participants continue to practice in Kansas.
Are State Student Loan Repayment Plans Worth It?
It depends on what your larger career goals are and whether you want to move to another state and possibly live in a remote area for a while.
If those rules align with your career goals, “that’s great,” Bankrate’s Rossman said. But he also said borrowers should ask themselves if the program’s requirements “are the career path they want or where they want to live.”
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People also need to consider travel costs and trade-offs, including earning power and lifestyle factors.
“My advice would be to consider the whole package. It’s probably not worth moving just for the student loan forgiveness program.”
Medora Lee is a money, markets and personal finance reporter for USA TODAY. You can contact her at mjlee@usatoday.com and subscribe to her free Daily Her Money newsletter where you can get personal her finance tips and news about her business every Monday through Friday morning.