How to Get Student Debt Forgiveness Through Your State Program: Some Are ‘Really Generous,’ Expert Says – NBC New York

• Experts say that amid uncertainty about the fate of federal student loan forgiveness programs, borrowers should consider the many relief options available at the state level.
• “Most states have (a program), especially when it comes to health care,” said Betsy Mayotte, president of the nonprofit The Institute of Student Loan Advisors.

Experts say that given the uncertainty about the federal government’s ability to forgive student debt, borrowers should consider taking advantage of the many relief programs available at the state level.

“Most states have this kind of arrangement, especially when it comes to health care,” said Betsy Mayotte, president of the Institute of Student Loan Advisors, a nonprofit that helps borrowers pay down their debt.

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The Minnesota nonprofit and hospital-based nurse student loan forgiveness initiative has recently attracted attention since Kamala Harris’ vice presidential candidate Tim Walz signed it into law last year. Under the program, registered nurses who work at a nonprofit or public hospital in Minnesota are eligible for up to $12,000 in student loan debt relief.

Different states have programs focusing on different areas.

“There are a lot of them for teachers and public defenders, and a few weirdos,” Mayotte added. “And some of them are really generous.”

What’s happening with federal debt relief programs

Now, the federal government’s ability to forgive student debt is in jeopardy.

The Biden administration’s new Saving on a Valuable Education repayment plan, known as SAVE, which provides accelerated forgiveness for some borrowers, is on hold amid a flurry of legal challenges led by Republicans. Biden’s sweeping forgiveness effort could be finalized this fall, but it also likely will end up in court.

If former President Donald Trump were to win in November, his record so far would show he would oppose student loan forgiveness.

In the meantime, check out what you need to know about student loan forgiveness options at the state level.

State forgiveness is often based on seizure

Most state student debt relief programs offer relief to borrowers in certain professions, says higher education expert Mark Kantrowitz.

“Therefore, they should seek forgiveness for the sake of their work and especially for the sake of their state,” Kantrowitz said.

In California, for example, licensed mental health professionals who work in certain facilities may be eligible for up to $15,000 in student loan assistance. (The next deadline to apply is Aug. 26.)

The Maine Dental Education Student Loan Repayment Program offers dentists from underserved areas of the state assistance with paying off student loans totaling $100,000.

One benefit of state loan forgiveness programs, Mayotte pointed out, is that private student loans often qualify. Meanwhile, the federal government excludes private loans from its relief.

Other state programs may offer forgiveness based on financial circumstances rather than occupation.

In New York, the Get On Your Feet Loan Forgiveness Program, introduced in 2015, allows some residents to receive loan forgiveness for up to 24 months of repayments. Among other qualification requirements, borrowers must have an adjusted gross income of less than $50,000 per year.

The Institute of Student Loan Counselors maintains a database of student loan forgiveness programs by state.