With the rising cost of education in the U.S., many graduates are left with overwhelming debt. While federal forgiveness programs like Public Service Loan Forgiveness (PSLF) exist, several U.S. states offer their own student loan forgiveness programs — often based on your profession, location, or community service.
In this 2025 updated guide, we’ll explore the state-by-state student loan forgiveness programs, eligibility requirements, and how to apply.
What Are State Student Loan Forgiveness Programs?
State-sponsored forgiveness programs are financial relief initiatives designed to reduce or eliminate student loan debt for residents who meet certain conditions, such as:
- Working in high-need jobs (like teaching or healthcare)
- Living in rural or underserved areas
- Practicing in public service professions
These programs are typically state-funded and separate from federal programs.
Student Loan Forgiveness Programs by State (2025 List)
Here’s a breakdown of active and noteworthy student loan forgiveness programs in each U.S. state as of 2025:
🔹 California
Program: California State Loan Repayment Program (SLRP)
Eligible Fields: Healthcare professionals in underserved areas
Amount: Up to $50,000
Website: oshpd.ca.gov
🔹 Texas
Program: Texas Student Loan Repayment Assistance Program (SLRAP)
Eligible Fields: Attorneys in legal aid services
Amount: Up to $6,000/year
Bonus: Separate programs for teachers and nurses available
🔹 New York
Program: NYS Licensed Social Worker Loan Forgiveness Program
Eligible Fields: Social workers
Amount: Up to $26,000 over 5 years
Also available: NYS Teacher Loan Forgiveness Program
🔹 Florida
Program: Nursing Student Loan Forgiveness Program
Eligible Fields: Licensed nurses working in state medical facilities
Amount: Up to $4,000 per year, max $16,000
🔹 Illinois
Program: Illinois Teachers Loan Repayment Program
Eligible Fields: Teachers in low-income schools
Amount: Up to $5,000
Requirement: Must already qualify for federal forgiveness
🔹 North Dakota
Program: STEM Occupations Loan Forgiveness Program
Eligible Fields: STEM graduates working in North Dakota
Amount: Up to $6,000 over 4 years
🔹 Kansas
Program: Rural Opportunity Zones (ROZ) Student Loan Repayment
Eligible Fields: Any profession
Amount: Up to $15,000 over 5 years
Note: Must live in eligible rural counties
🔹 Minnesota
Program: Minnesota Loan Forgiveness Program
Eligible Fields: Nurses, pharmacists, dentists, and teachers
Amount: Up to $24,000
Website: health.state.mn.us
🔹 Maine
Program: Alfond Leaders Student Debt Reduction Program
Eligible Fields: STEM careers
Amount: Up to $60,000
Bonus: High forgiveness amount makes this highly competitive
🔹 Maryland
Program: SmartBuy 3.0 Homebuyer Assistance
Eligible Fields: Homebuyers with student debt
Amount: Up to $30,000 in student loan debt forgiveness
Unique: Tied to real estate purchase
Common Eligibility Requirements
While each program is different, most require you to:
- Be a U.S. citizen or legal resident
- Be a resident of the state
- Work in a high-need profession
- Maintain employment in that role for a set number of years
- Have eligible student loans (usually federal, sometimes private)
Professions Often Eligible for Forgiveness
- Teachers (especially in low-income schools or STEM subjects)
- Nurses and healthcare workers
- Social workers and counselors
- Legal aid attorneys
- STEM professionals in rural areas
- Veterinarians and pharmacists
Tips to Maximize Loan Forgiveness Benefits
- Stack benefits: You can sometimes combine federal and state programs
- Check deadlines: Many state programs have annual or rolling applications
- Track service years: Keep employment verification ready for audits
- Reapply if multi-year benefits are offered
❓FAQs
Q1. Can I apply for more than one forgiveness program?
Yes, as long as eligibility overlaps and program rules allow it.
Q2. Are these programs open to private college graduates?
Yes, most programs do not restrict based on institution type.
Q3. Do I have to pay taxes on forgiven loans?
Some forgiven loans may be considered taxable income—check IRS rules and individual state tax laws.
Read These Also:
- Health Insurance for Digital Nomads and Remote Workers: What You Need to Know
- The Impact of AI on Health Insurance Approvals: How Artificial Intelligence Affects Claim Approvals and Denials
Conclusion
If you’re a college graduate struggling with student loan debt, your state might have the perfect solution for you. These lesser-known forgiveness programs can save you thousands of dollars—sometimes even more than federal options.
Start by checking your state’s official website or reach out to your employer or school’s financial aid office to find out what’s available in 2025.
Shane Watson is a skilled and versatile content writer with a passion for crafting engaging and informative articles across various topics. With years of experience in digital content creation, he specializes in writing about technology, business, health, lifestyle, and more. Shane’s ability to research deeply and present complex information in a clear and compelling manner makes his content valuable for diverse audiences.