The Supreme Court is currently deciding the legality of President Biden’s broad federal student loan forgiveness program, which has left borrowers unsure about resuming payments when the loan pause extension expires 60 days after June 30, 2023.
States that offer Student Loan Forgiveness. (Photo: FOX)
Student Loan Forgiveness and Other Cancellation
There are various types of loan forgiveness, cancellation, and discharge options offered by the federal government, such as Public Service Loan Repayment Forgiveness, Teacher Loan Forgiveness, Perkins Loan Cancellation, and income-driven repayment plans, according to an article published in Yahoo News.
Most states offer student loan repayment assistance programs to retain in-demand workers in fields such as health, education, and law. But some states are incentivizing new residents to move to their cities and towns by wiping out remaining student loan balances.
READ ALSO: Expect More Student Loan Forgiveness From Biden’s Education Department After Its Success In 2022
States that Offer Student Loan Forgiveness
Illinois has a Smart Buy home buying program that pays off 15% of a new home buyer’s student loan balance, up to $40,000. The Rural Opportunity Zones Student Loans Repayment Program (ROZ) in Kansas provides income tax waivers for up to five years or student loan repayments of up to $15,000 for new full-time residents living in designated and participating rural counties.
In a published article in Bankrate, Maine offers up to $25,000 in lifetime student loan forgiveness through the Maine Opportunity Tax Credit for residents who meet certain graduation requirements. To qualify for the credit, residents must be full-time Maine residents and work in Maine for at least nine months.
Maryland’s SmartBuy 3.0 program allows homebuyers to purchase any eligible Maryland Mortgage Program while paying off student debt, up to 15% of the home purchase price, with a maximum payoff amount of $50,000. Homebuyers must make a down payment of at least 5% to take advantage of this assistance/forgiveness program.
These state-level programs offer relief to borrowers struggling with student loan debt, but it’s important to note that eligibility requirements and conditions vary.
Students should research these programs and determine whether they meet the criteria for eligibility. While the future of Biden’s student loan forgiveness program is still uncertain, borrowers may be able to find some relief through these state-level programs.
READ ALSO: Payments For Student Loan May Resume Around Fall This Year
