Written By Miranda Marquit
According to The Institute for College Access & Success (TICAS), about 60% of Delaware college graduates have student loan debt. The average amount of debt for graduates in Delaware was $39,705 in 2020.
That can feel like an overwhelming amount of money, especially when you consider monthly payments once you finish your higher education. However, there are loan forgiveness programs available for borrowers in the state.
4 Delaware student loan forgiveness options
Most of the student loan payment options available in Delaware state are for health services or education professionals, based on high-need areas. Here are some of the state loan repayment programs you might be able to access in Delaware.
Delaware Health Care Provider Loan Repayment Program
The Delaware Health Care Commission administers this loan relief program, which is aimed at providing primary care providers up to $50,000 a year for up to four years. Advanced degree practitioners must provide primary care either full-time or part-time. Part-time providers will receive prorated loan repayment help.
You need to commit to at least two years of practice with the state of Delaware, and you can renew for up to two years afterward.
Conrad State 30/J-1 Visa Waiver Program
For international medical graduates, the Conrad State 30/J-1 Visa Waiver program can be a way to stay in the United States longer and get help with student loan repayment. If you agree to work in a health professional shortage area, as designated by Delaware state, you might be eligible for partial student loan repayment assistance.
Additionally, you might be able to stay in the United States longer. Upon graduation, up to 30 physicians each year are exempt from the requirement to return to their country of nationality.
Get Started With Our New IDR Calculator
Federal Nurse Scholarship and Loan Repayment Programs
Another student loan repayment program (SLRP) offered by Delaware is a federal nurse program. This is a program that makes use of federal money as part of its program to encourage nursing participation in Delaware. There are three different programs you can learn more about:
- Nurse Corps Scholarship Program. Those who qualify can receive help paying tuition and fees, as well as a monthly stipend.
- Nurse Corps Loan Repayment Program. It’s possible to receive help paying up to 85% of the education debt acquired while getting a nursing education.
- Nurse Loan Repayment, Scholarship and Grant Programs. Offers eligible applicants financial assistance for nursing student debt, as well as grants and other investments for training.
Critical Need Reimbursement Program
Finally, Delaware has a program for teachers who focus on areas of critical need. If you’re willing to take courses designed to help you improve your ability to teach in certain areas, you can be reimbursed for that coursework.
To qualify, you must teach full-time in a Delaware school district or approved charter school and do so on an Emergency Certificate or Certificate of Eligibility in a high-need area. As you take courses to qualify, you can potentially be reimbursed for the costs. You can learn more about this program from the Delaware Department of Education.
Other student loan forgiveness options for Delaware borrowers
Even if you don’t qualify for other programs, you might be able to qualify for different loan forgiveness programs offered through other areas. President Joe Biden extended the pandemic-era payment pause on student loans, which can give you breathing room.
Additionally, while President Biden’s forgiveness plan is in the Supreme Court, you can look at other options for student debt relief.
Public Service Forgiveness Program
The Public Service Loan Forgiveness Program (PSLF) is designed to encourage graduates to work for government and non-profit organizations. After making 120 qualifying payments while working an eligible job, the remaining balance of your loans is forgiven.
Those working for certain non-profits, as well as federal, state and tribal governments, can potentially qualify. To increase the chances of receiving forgiveness, consider filling out the employment certification form provided by the U.S. Department of Education each year.
Teacher Loan Forgiveness
Receive up to $17,500 in student loan forgiveness when you teach in high-need areas. You need to serve in one of these areas for five years in order to be eligible for this student loan forgiveness program. It’s important to note that the five years you use toward Teacher Loan Forgiveness don’t “count” toward PSLF.
However, if you receive Teacher Loan Forgiveness, you can start the clock ticking on PSLF after that. Read more about the difference between PSLF vs. Teacher Loan Forgiveness.
National Health Service Corps
Get up to $100,000 in student loan repayment help from the federal government, depending on your area of specialty, where you provide your services and whether you work full-time or part-time.
The National Health Service Corps provides those who work as healthcare professionals, including mental health, with a way to repay their federal loans. You can learn more about different programs by looking at the Health Resources & Services Administration chart.
Income-driven repayment
Another option is an income-driven repayment plan. There are different plans you can sign up for based on your income and other eligibility requirements. These plans are designed to limit your monthly payments to a percentage of your discretionary income.
Each of these plans can make your monthly payments more affordable. Additionally, depending on the plan, you can potentially have your remaining balances forgiven after 20 or 25 years. So, even if you don’t qualify for other forgiveness, you can get relief after a set amount of time.
Income-driven repayment is also compatible with PSLF. So, if you’re working in a qualifying job and you’re eligible for income-driven repayment, you can get on one of these plans, and after 10 years, if you qualify, you might get relief through PSLF.
The bottom line
Looking into different state and federal programs can help you reduce your loan balances and potentially get student loan debt relief. If you live in Delaware, explore state and federal programs that offer student loan cancellation so that you can reach your other financial goals sooner.
Not sure what to do with your student loans?
Take our 11 question quiz to get a personalized recommendation for 2024 on whether you should pursue PSLF, Biden’s New IDR plan, or refinancing (including the one lender we think could give you the best rate).
