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Student Loan Forgiveness Debt Relief: What States Offer the Program?

Student loan forgiveness debt relief
Several states offer student loan forgiveness debt relief. (Photo: Yahoo)

As the legal battle over President Joe Biden’s student loan forgiveness debt relief program continues, some states are taking matters into their own hands by offering assistance programs.

Student loan forgiveness debt relief

Several states offer student loan forgiveness debt relief. (Photo: Yahoo)

Different Student Loan Forgiveness Debt Relief in Several States

The national program, Biden’s student loan forgiveness debt relief program, is no longer accepting applications due to legal challenges. But several states, including Kansas, Maine, Maryland, and Michigan, have their own programs to help ease the burden of student loan debt, according to a published report in The U.S. Sun.

Kansas offers a student loan forgiveness debt relief repayment program that provides up to $15,000 in assistance over five years to individuals with an active student loan balance in their name, as well as a completed associate’s, bachelor’s or post-graduate degree. Applicants must have proof of domicile in a qualifying county, proof of previous permanent residency, and transcripts with degree dates, as well as student loan balance information with distribution dates.

Maine’s program called the Opportunity Maine Tax Credit provides borrowers with up to $25,000 in lifetime forgiveness in the form of a tax credit. While the requirements are currently being updated, borrowers must be full-time residents of Maine, and other requirements involve graduation date and where they went to school.

Maryland’s SmartBuy 3.0 program provides a maximum payoff of $50,000 to borrowers who purchase a home that meets the Maryland Mortgage Program guidelines. Borrowers must have a minimum balance of $1,000 in student debt, and the program provides up to 15% of the home purchase price to the borrower to pay off their debt.

In Michigan, the State Loan Forgiveness Debt Relief Repayment Program offers up to $300,000 in repayment to healthcare providers in a Health Professional Shortage Area, with a minimum commitment of two years.

READ ALSO: Student Loan Debt In The Balance: The Supreme Court Considers The Fate Of Loan Forgiveness Programs

How Many Millions Applied for Student Loan Forgiveness Debt Relief?

According to The White House, nearly 26 million Americans applied for federal student loan forgiveness debt relief before the program’s current pause, and 16 million were approved.

The plan would have provided up to $20,000 in assistance for those making less than $125,000 per year. An estimated 42.8 million Americans have federal student loan debt currently, Bank Rate reports.

While the legal challenges continue to hold up the national program, borrowers may still be eligible for state-provided assistance. Additionally, there are several direct payments going out next month that could help pay down debts, and borrowers may qualify for monthly payments of $500 for a year.

READ ALSO: Student Debt Forgiveness: Biden’s $34 Billion “Fresh Start” Plan Benefits Borrowers


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