Written By Kevin Payne
Having student loan debt is stressful, especially if there seems to be no end in sight with repayment. Paying down loans could take decades depending on your balance and may delay your pursuit of other life goals like getting married, owning a home and starting a family.
Tennessee borrowers know all about student loan debt. Over 50% of Tennessee graduates in the class of 2020 took out student loans to pay for school, with an average debt of $26,852.
Depending on your career path and other factors, you might be eligible for one of several state-specific student loan forgiveness programs available in Tennessee. Loan forgiveness and loan repayment programs allow you to wipe out a portion of your loan debt. Typically, forgiveness is offered in exchange for several years of service in communities around the state.
Keep reading to learn more about student loan forgiveness and loan repayment plan options available through the state of Tennessee and the U.S. Department of Education.
Student loan forgiveness in Tennessee
Tennessee currently offers three state-specific student loan forgiveness and loan repayment options. These programs are geared toward healthcare professionals and teachers working in underserved areas of the state.
Tennessee Student Assistance Corporation
Two of Tennessee's student loan forgiveness programs are administered by the Tennessee Student Assistance Corporation (TSAC). The nonprofit organization offers more than 20 student financial aid programs within the state, including the loan forgiveness programs listed below.
Graduate Nursing Loan Forgiveness Program (GNLFP)
The GNLFP is specifically for registered nurses pursuing a career as teachers or administrators in Tennessee nursing education programs. You must have an unencumbered Tennessee nursing license and be enrolled at an eligible Tennessee school pursuing a master’s degree or a post master’s degree in a nursing education program.
Qualifying full-time students are eligible for $7,000 maximum in loan forgiveness annually, while part-time students are eligible for $3,500 maximum annually.
Minority Teaching Fellows Program (MTFP)
The MTFP offers financial aid assistance to eligible minority Tennesseans interested in becoming school teachers within the state. To qualify, you must be a college junior, senior, or graduate student enrolled in courses creditable to teacher certification at an eligible Tennessee college or university. You must also maintain a 2.5 GPA or higher and not be a licensed teacher already.
The program offers $5,000 each academic year for eligible applicants. Award recipients must teach (Pre-K through 12th grade) full-time for a year in a Tennessee public school for every year the award is received.
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Rural Health Association of Tennessee
The Rural Health Association of Tennessee is home to one student loan forgiveness program. The non-profit organization aims to improve the lives of Tennessee residents living in rural areas within the state.
Tennessee State Loan Repayment Program (TSLRP)
TSLRP offers loan repayment for eligible primary care practitioners in exchange for two years of qualifying service in a rural community. To qualify, you must work two years (full-time or part-time) for an eligible primary care provider.
Providers must either be a federally designated Health Professional Shortage Area (HPSA) or a facility designated as a Federally Qualified Health Center (FQHC) or Rural Health Clinic (RHC).
The program offers up to $50,000 in loan repayment assistance for an initial two-year service obligation.
Federal student loan forgiveness programs for Tennessee residents
For individuals who don't qualify for one of the state-specific loan forgiveness programs available in Tennessee, you might still be eligible for a federal loan forgiveness program.
The U.S. Department of Education offers several federal student loan forgiveness programs for qualified federal student loan borrowers, including:
- Public Service Loan Forgiveness program (PSLF)
- Income-driven repayment
- Teacher Loan Forgiveness
- Perkins Loan cancellation
Loan forgiveness terms, conditions, and amounts vary between each program. Some are more involved than others and only apply to specific student loan borrowers. Federal loan forgiveness programs can take anywhere from five to 25 years to complete depending on the program.
PSLF, for example, is geared toward individuals working for government employers or nonprofit organizations. To be eligible, you must make 120 qualifying loan payments while working full-time for a qualifying employer.
Private student loan borrowers
If you don’t qualify for Tennessee student loan programs, and have private student loans, private loans aren't eligible for federal loan forgiveness. An alternative option to potentially cut down sizable student loan balances is by refinancing your student loans.
Refinancing could lower your monthly payments or pay off your debt early, saving on expensive interest charges with the right credit.
If you refinance federal loans, you’ll lose access to government benefits, like generous deferment and forbearance timelines, income-driven repayment options, access to loan forgiveness and more.
Next steps for student loan forgiveness in Tennessee
Whether you qualify for a Tennessee loan forgiveness program or one of the available federal programs, the time is now to start applying. Most loan forgiveness and loan repayment programs require a fixed service commitment. Research each program to find the best fit for you.
If you need help determining the right repayment course, let us help. Our consultants can help you find the best loan repayment solutions for your unique situations. See how you can get ahead on your student debt.
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