Written By Caitlin See
Vermont residents carry a federal student debt load of around $3 billion, according to 2023 U.S. Department of Education data. If you’re from the Green Mountain State and looking for debt relief options, check out these Vermont student loan forgiveness programs.
11 Vermont student loan forgiveness options
Vermont has quite a few loan repayment and debt cancellation programs available for healthcare professionals, dentists, lawyers, teachers and food animal veterinarians. But it also has a pilot program that allows new graduates from any educational background to qualify for loan repayment if they stay in Vermont.
Note that your federal, state and private loans might be eligible, depending on the program.
1. Green Mountain Job and Retention Program
Amount: $2,500 per year
Maximum amount: $5,000 over two years
The state of Vermont recently announced a new loan repayment program designed to incentivize and retain new graduates from its state colleges and universities to remain in Vermont. Eligible schools include:
- Bennington College
- Castleton University
- Champlain College
- Goddard College
- Landmark College
- Middlebury College
- Northern Vermont University
- Norwich University
- Saint Michael’s College
- Sterling College
- University of Vermont
- Vermont Technical College
Spring 2023 graduates who earned a bachelor’s degree and plan to live and work in Vermont for at least two years can qualify for a $5,000 loan repayment award.
2. Vermont Educational Loan Repayment Program for Physicians, Nurse Practitioners and Physician Assistants
Amount: Up to $50,000 per year
Maximum amount: Up to $300,000 over six years
This state loan repayment program aims to increase access to primary health and dental care for underserved communities by addressing the health professional shortages in these areas. One- and two-year service obligations are available, with varying award amounts. Loan repayment maxes out at $300,000 over six years.
Eligible professions and qualifications include:
- Physicians (MD, DO or ND)
- Geriatricians
- Psychiatrists
- Advanced practice registered nurses (APRN)
- Certified nurse midwives
- Physician assistant (PA)
However, you must be employed at a primary care practice, urgent care site, outpatient mental health or substance abuse disorder setting, or an inpatient mental health setting. Qualifying primary care specialties include: family medicine, general internal medicine or adult primary care, pediatrics, obstetrics and gynecology, geriatrics and psychiatry.
3. Vermont Educational Loan Repayment Program for Nurses
Amount: Up to $15,000 per year
Maximum amount: Up to $60,000 over four years
Vermont nurses (RN and LPN) who agree to work at an eligible work site for one year can receive up to $15,000 in loan forgiveness. Eligibility is prioritized for nurses working in underserved communities in nursing homes, long-term care, home health, state public health, mental or behavioral health, substance abuse settings, hospital operating rooms, and hospital post-anesthesia care units. K-12 school nurses are also eligible.
Note you can receive loan repayment funds for a maximum of four years.
4. Vermont Dental Educational Loan Repayment Program
Amount: Up to $50,000 per year
Maximum amount: Up to $300,000 over six years
Vermont licensed dentists might qualify for up to $50,000 in loan repayment, depending on your award amount and voluntary employer match. You must practice an average of 20 direct patient clinical hours per week and meet a certain Medicaid patient target.
Service contracts are available for 12 months and two years. You may receive loan repayment funds for a total of six years.
5. Vermont Educational Loan Repayment for Nurse Educators/Faculty
Amount: Up to $50,000 per year
Maximum amount: Up to $300,000 over six years
If you’re a nurse educator or faculty at a nursing program in Vermont, you might be eligible to receive $10,000 to $50,000 in loan repayment per year. Eligible nursing programs include:
- Castleton University
- Norwich University
- Vermont Technical College
- University of Vermont
Eligible recipients may reapply and receive loan repayment funds for a maximum of six years.
6. Vermont Bar Foundation Loan Repayment Assistance Program
Amount: Up to $5,000 per year
Maximum amount: Number and amount of awards may be limited at discretion of the Grants Committee
Licensed attorneys employed in nonprofit organizations serving low-income individuals in Vermont might receive loan repayment assistance from the Vermont Bar Foundation (VBF). You must make less than $60,000 annually and work for a qualifying employee, such as:
- Disability Rights Vermont
- Have Justice-Will Travel, Inc.
- Legal Services Law Line of Vermont
- Office of the Public Defenders (Employees)
- Safeline
- South Royalton Legal Clinics of Vermont Law School
- Spectrum Youth and Family Services
- Vermont Legal Aid, Inc.
Awards max out at $5,000 per year. Former recipients can apply for future award cycles if they still meet employment and income requirements.
7. Vermont Law & Graduate School Loan Repayment Assistance Program
Amount: Up to $6,000 per year
Vermont Law and Graduate School JD degree recipients who are entering low-paying, public interest work can apply for loan repayment of $1,000 to $6,000 per year. This might include working for a legal service office, government agency or an advocacy group. Prosecutors and public defenders are also eligible.
Applicants with the highest debt-to-income ratio are given priority.
8. Vermont Student Loan Repayment Assistance Program for Early Childhood Educators
Amount: Up to $4,000 per year
Maximum amount: No cap as long as the program continues
Full-time early childhood educators can receive up to $4,000 in loan repayment annually. Qualifying employment settings include privately operated early childhood education programs, home programs regulated by the Child Development Division (CDD), and the Vermont Head Start program.
Applicants must earn $60,000 or less and work an average of at least 30 hours per week.
This program was expanded and relaunched on June 1, 2023. It now allows for retroactive payments and new eligibility requirements.
9. Vermont Food Animal Veterinary Education Loan Program
Amount: Up to $30,000 per year
Maximum amount: $120,000 over four years
The Vermont Veterinary Medical Association administers this program, providing up to $30,000 in loan repayment annually for food animal veterinarians. Eligible disciplines include dairy, beef, small ruminants, swine, poultry and bees (apiary). However, you’re only required to average 20 hours of food animal activities each week. Therefore, you can continue equine or other private practice focus areas.
Eligible applicants can receive loan funds for a maximum of four years.
Other student loan forgiveness programs for Vermont borrowers
If you don’t qualify for one of the Vermont student loan forgiveness programs, you can still take advantage of federal student loan relief programs.
10. Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness program helps public servants and nonprofit employees wipe away their remaining federal debt after 120 qualifying payments. The limited PSLF Waiver. helped fast-track many borrowers on the PSLF path. But if you missed out on applying for it, you can still reap similar benefits with the income-driven repayment (IDR) account adjustment.
11. Income-driven repayment forgiveness
IDR forgiveness is available through various income-driven repayment plans, including President Biden’s new SAVE plan. These plans offer lower monthly payments based on 5% to 20% of your discretionary income with eventual loan forgiveness after 20 to 25 years of payments.
Get a custom student loan repayment strategy
Going for loan forgiveness can be a smart decision if you’re aware of the ins and outs of available state and federal programs. Unfortunately, the details of each program aren’t always straightforward. So, it’s easy to make a misstep that can end up costing you.
Our team of student debt experts has consulted on over $2.6 billion of student loan debt. Reach out today to receive a custom repayment strategy that takes a holistic approach to your finances.
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).
