Written By Miranda Marquit
Student loan debt can be stressful — especially if you have tens of thousands of dollars in outstanding education loans. In fact, student loans are one of the financial burdens that can cause anxiety and stress in your daily life.
The average student loan debt in Massachusetts is $34,573, and that can feel problematic when combined with other bills you might have to pay just to survive. However, depending on your profession, there are some state-specific and federal government options for Massachusetts student loan forgiveness.
Massachusetts student loan forgiveness program
Massachusetts offers only one state-specific student loan forgiveness program, the Massachusetts Loan Repayment Program for health professionals. However, it’s possible to get access to federal loan forgiveness programs as well.
MCPHS loan forgiveness
Healthcare professionals who are willing to practice in underserved areas can get loan forgiveness of up to $50,000 after working a two-year contract. It’s important to note, however, that awards are based on the discipline of the health professional.
This is one way to get nurse loan forgiveness in Massachusetts, as well as forgiveness for primary and critial care physicians, dentists, social workers, psychologists, counselors and more.
Those who participate in this program can’t work toward other loan forgiveness programs, including being a member of the National Health Service Corps.
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Massachusetts scholarships and grants
If you’re currently attending school, there are some state-specific scholarships and grants that can help you reduce your reliance on student loans to begin with. You can see a list of available scholarships and grants from the Massachusetts Office Student Financial Assistance.
Some of the available scholarships and grants include:
- The MASSGrant
- Massachusetts Part-Time Grant
- Massachusetts Public Service Grant
- Paraprofessional Teacher Preparation Grant
- Agnes M. Lindsay Scholarship
- One Family Inc. Scholarship Program
- Paul Tsongas Scholarship
Massachusetts also offers a variety of tuition waivers that can be used, depending on your situation. This includes waivers for career advancement, teachers, graduate students and foster tuition.
Qualifying for a grant, scholarship or waiver could reduce, or even eliminate, the need for Massachusetts student loan forgiveness later. Combining a grant or scholarship strategy with planning for student loan forgiveness later can be one way to help you navigate the costs of college.
Federal student loan forgiveness programs for Massachusetts residents
If you don’t qualify for a state-specific Massachusetts student loan forgiveness program, you might be able to take advantage of a federal program. Some of the well-known federal programs apply to Massachusetts residents.
Some of the federal programs require student loan borrowers to work in areas of Massachusetts that might be designated a shortage area. Shortage areas are determined on a state-by-state basis.
National Health Service Corps Loan Repayment
There are several different NHSC Loan Repayment programs available, including nurse loan forgiveness for Massachusetts residents. These programs require you to provide healthcare service in underserved or rural communities.
Award amounts can be up to $100,000, depending on your profession. For example, registered nurses are eligible for a higher repayment amount than dental hygienists. Additionally, how much you receive in loan repayment help depends on whether you work full-time or part-time, as well as how many years you work.
Perkins Loan cancellation
Depending on the situation, you might be eligible for 100% Perkins Loan debt cancellation. To qualify, you need to be a teacher, and work in an area that serves low-income families, special education or teach in a subject area that Massachusetts considers to have a shortage of qualified teachers.
Other professions are eligible for Perkins Loan cancellation, including law enforcement, firefighter, nurse, public defender or some volunteer service like AmeriCorps or Peace Corps.
Teacher Loan Forgiveness
It’s possible to receive up to $17,500 in federal loan cancellation if you teach in a low-income school. To qualify for loan forgiveness, you need to teach for five consecutive years. After meeting those requirements, and passing the eligibility tests as a “highly qualified” educator, you can apply for loan forgiveness.
Once you receive your Teacher Loan Forgiveness, if you have a remaining balance, you can start on the Public Service Loan Forgiveness program (PSLF). However, the five years you spent teaching to receive Teacher Loan Forgiveness won’t count toward PSLF.
Public Service Loan Forgiveness
One of the most talked-about loan forgiveness programs is PSLF. As a Massachusetts resident, you’re eligible for PSLF if you work at certain nonprofit or government jobs. You must work full-time for the agency in question, and be up-to-date on your payments.
After making 120 qualifying monthly payments, you’re eligible to apply for PSLF. Only Direct Loans are eligible; private student loans and loans made under the old FFEL program aren’t eligible.
Public Service Loan Forgiveness works well in conjunction with income-driven repayment. If you’re on an income-driven repayment plan, chances are that you’ll still have a balance left on your student loans at the end of 10 years. You can then pay off your remaining balance.
Peace Corps/AmeriCorps
For those willing to work in areas of need either abroad or at home, it’s possible to receive some money toward student loan repayment. Peace Corps offers eligibility to work toward PSLF, in addition to the possibility of partial loan cancellation.
With AmeriCorps, you can use your Segal Education Award to make payments toward your student loans — and receive up to 12 qualifying payment credits for PSLF. Carefully review your options before moving forward. Additionally, you can use income-driven repayment while serving in the Peace Corps or AmeriCorps.
Income-driven repayment
If you don’t qualify for any other loan forgiveness or repayment help, you might be able to get a portion of your student loan balance forgiven after being on an income-driven repayment plan. Depending on the plan, and the types of loans you have, if you still have a balance after being on the plan for 20 or 25 years, your remaining balance could be forgiven.
Before getting on income-driven repayment, it’s important to note that interest rates still apply and your loan balance could rise. These student loan payments are more manageable for your budget, but because you might not be paying all of the interest you owe, it continues to accrue and is added to your loan balance.
Having a plan, such as using income-driven repayment in conjunction with another program like PSLF, can help reduce how your debt grows over time.
Start a Massachusetts student loan forgiveness program today
Any forgiveness or repayment program takes years to complete. It makes sense to carefully consider your options and create a strategy for getting rid of those student loans as soon as possible. Research and apply for student loan forgiveness programs that are likely to meet your needs and that you qualify for. Depending on the program, you might be able to combine different options to tackle a larger portion of your debt.
If you want a team of professionals to consult during this process, we can help. Student Loan Planner® works to look at all of your loan repayment and forgiveness options to set you on a path of getting rid of your student loan debt.
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