Written By Miranda Marquit
Large student loan payments can cause a lot of stress in your life once you finish school. If you’re a graduate from an Oregon school, you might be one of the 53% who has student loan debt. When you consider that the average educational debt among Oregon borrowers is $26,504, it’s no surprise that you might be looking for some help with loan repayment.
Here’s what you need to know about student loan forgiveness in Oregon.
Student loan forgiveness in Oregon
Oregon offers state-specific repayment plans for qualifying borrowers with federal student loan debt. Below are two student loan repayment options available through the state.
Health Care Provider Incentive Program
Under Oregon’s Health Care Provider Incentive Program, certain healthcare professions can have up to $35,000 per year forgiven of a qualifying student loan balance.
Some professions that are eligible include dentists, dental hygienists, physicians, primary care providers (like nurse practitioners), physician assistants and certain licensed counselors.
To qualify, you must provide services in an underserved area within the state, or serve Medicaid and Medicare patients and commit to three years of service.
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Oregon State Bar Loan Repayment Assistance Program
The Oregon State Bar’s Loan Repayment Assistance Program is aimed at encouraging Oregon law school graduates, including public defenders, to get involved with public service law. The program offers up to $7,500 a year in exchange for three years of service.
Applicants must earn less than $70,000 a year through a qualified employer, including doing nonprofit work. Additionally, the applicant must have at least $35,000 in student debt at the time of application.
Federal student loan forgiveness programs for Oregon residents
In addition to state-specific repayment plans and assistance, there are also federal programs. Depending on the program, you might be able to use federal loan forgiveness options after exhausting your state-sponsored loan forgiveness program.
Public Service Loan Forgiveness Program (PSLF)
If you work for a qualifying Oregon employer, including nonprofit and government entities, you might be eligible for cancellation under the Public Service Loan Forgiveness Program. After making 120 qualifying payments your remaining federal student loan balance is forgiven.
In general, you’re likely to find success with this approach if you’re on an income-driven repayment plan. See how much you’d save by using a PSLF savings calculator.
Teacher Loan Forgiveness
The federal Teacher Loan Forgiveness program is available to Oregon teachers who have eligible federal Direct Loans or Federal Family Education Loan (FFEL) Program Loans. Participants can have up to $17,500 of loan debt forgiven.
To qualify, you’ll also need to spend five consecutive years teaching at an elementary school, secondary school or educational service agency that serves low-income students.
Related: PSLF vs. Teacher Loan Forgiveness: Which Is Better for Teachers?
Perkins Loan cancellation
Perkins Loan cancellation is available for certain Oregonian teachers and workers, like law enforcement officers, firefighters, nurses or medical technicians, and others.
Each year, you can have a portion of your Perkins Loan canceled until your Perkins Loan is fully discharged.
National Health Service Corps Loan Repayment Assistance (NHSC LRP)
There are multiple NHSC loan repayment options for health professionals who meet certain requirements, including committing to service in Oregon’s underserved areas.
It’s possible to get up to $100,000 in loan forgiveness. How much you’re eligible for through its student loan repayment program depends on whether you work full-time or half-time, and the type of health professional you are.
Income-driven repayment
Finally, if you don’t qualify for PSLF, but are on one of four income-driven repayment (IDR) plans, you might still be eligible for loan forgiveness. After completing 20 or 25 years of payments under an IDR plan, your remaining federal loan balance is discharged.
The duration in which your loans are discharged depends on the IDR plan you’re on. Contact your loan servicer for more information about qualifying for income-driven repayment.
Private student loan debt and refinancing
Many of the programs above focus on federal student loan forgiveness. Your Oregon private student loans might not be eligible for forgiveness depending on the program you pursue.
Double-check your program’s requirements. In some cases, it might make sense to refinance private loans. Refinancing your private student debt might help you access a lower interest rate which means lower monthly payments and paying off the debt faster.
Each lender has its own rate and lending criteria so compare refinancing offers before proceeding.
Refinancing federal student loans
If you don’t qualify for a student loan forgiveness program, and you aren’t concerned about accessing federal forbearance options or income-driven repayment, you can also refinance your Direct Loans.
However, at this point, your federal loans become private student loans and you’ll lose the federal benefits you have, currently. If you want to maintain federal benefits, federal Direct Loan Consolidation might make more sense.
Alternative financial aid options for current Oregon students
If you’re a current Oregon student, you can reduce how much student loan debt you graduate with by applying for grant- and scholarship-based financial aid. Oregon offers its own scholarships and grants which can cover college expenses without having to be repaid.
Some of the available resources include:
- Oregon Office of Student Access and Completion (OSAC) scholarships. There are hundreds of scholarships available to Oregon students. Check the annual OSAC catalog for information about different scholarships and requirements.
- Oregon Opportunity Grant. Get up to $3,612 if you’re a low-income student.
- Oregon Promise Grant. Designed for recent high school graduates, this grant offers between $1,000 and $4,131 per year.
- Oregon National Guard State Tuition Assistance Grant. Aimed at students who are in the National Guard. This can provide tuition funding depending on how many credits you’re taking.
In many cases, you need to fill out the Free Application for Federal Student Aid (FAFSA) to qualify for these grants.
Start an Oregon student loan forgiveness program today
Student loan forgiveness in Oregon — or any state — can take time to get started. Most loan cancellation and forgiveness programs require you to devote at least three years or more of service before you can qualify.
Additionally, if you use the U.S. Department of Education programs, you might need to fill out extra paperwork. For example, if you’re on an IDR plan, your income status must be verified each year.
Pursuing a path toward student loan forgiveness in Oregon can be daunting. If you want help mapping out the best program that fits your needs, meet with a Student Loan Planner consultant. We’re credentialed professionals who work with you to create your ideal student loan forgiveness plan.
Not sure what to do with your student loans?
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