If President Biden’s student loan debt cancellation plan is struck down by the U.S. Supreme Court, borrowers still have options available to them through individual state forgiveness plans.
In fact, 47 states and Washington, D.C., have their own programs, while many of them offer more than one loan forgiveness program. Every program is different with its own unique set of requirements, many of which are tailored to one profession or one specific industry. Additionally, like the Public Student Loan Forgiveness Program, many of them require the borrower to work in a specific industry for a set period of time. However, if the Supreme Court does end up striking down Biden’s proposed program, these state programs may be the only option available to borrowers.
One thing to keep in mind is these programs are only open to residents of these states. The following are a few examples of these programs:
New York student loan forgiveness programs
In total, New York offers seven student loan forgiveness programs. Six of them are for specific professions, including district attorneys, attorneys offering legal services to indigent individuals, licensed social workers, child welfare workers, nurses, teachers, and child welfare workers. This means these programs are only available to individuals who qualify with jobs in these specific industries. The other student loan forgiveness program is for state-school graduates, limited to individuals graduating in 2015 and later, who earn less than $50,000 annually. To qualify, these borrowers must live in the state and be enrolled in certain federal payment plans.
Kansas student loan forgiveness programs
Kansas offers three separate student loan forgiveness programs. These programs are aimed at helping individuals living in rural areas, as well as those working in the state’s healthcare industries. The Rural Opportunity Zones Student Loan Repayment Program gives up to $15,000 in student loan forgiveness for up to five years so long as the borrower lives in one of Kansas’s rural counties. The Kansas State Loan Repayment Program provides up to $25,000 annually for medical, nursing, dental, and mental health care professionals who officially commit to working at least two years at sites that are federally designated Health Professional Shortage Areas (HPSA).
Lastly, the Kansas Bridging Plan (KBP) gives funds for primary care and psychiatry resident physicians. The hope behind this program is that the program will encourage residents to stay and work in Kansas after they complete their residency period. To accomplish this, KBP gives $26,000 in exchange for a 36-month commitment to practice in one of Kansas’s eligible counties. Every year, Kansas has up to 14 slots for primary care and three slots for psychiatry workers. Approximately 85 percent of KBP participants do continue to practice in Kansas after their residency period is complete.
Are state student loan repayment plans worth it?
It depends on what your larger career goals are and if you want to move to a different state and possibly, live in a remote area for a while. If those rules align with your career goals, “then it’s great,” said Bankrate’s Rossman. But he also noted that borrowers need to ask themselves whether the program requirements are “not your desired career path or where you want to live?” People should also consider moving costs and tradeoffs involving earning power and lifestyle factors.
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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.