Written By Miranda Marquit
Student loan debt can cause stress and make it hard to accomplish some of your financial goals. If you live in a state like Washington, where the average federal student loan debt is $35,728, you might feel the pressure even more.
If you’re a Washington state resident and need help with your student loan’s monthly payments, you might be eligible for Washington state and federal student loan forgiveness programs.
Health Professional Loan Repayment Program
You can receive up to $35,000 per year for two years in loan cancellation or repayment help under the Health Professional Loan Repayment Program, now known as the State Health Program. In order to qualify, you must work as a healthcare professional in one of the areas designated as a shortage area in Washington.
In order to be eligible, you must be a United States citizen or meet certain residency requirements and provide primary care services. Providers in the program can't provide specialty care if they want to be considered. You must sign a two-year contract and serve out the terms. If you don’t complete your service agreement, you might be required to repay the money you received through the repayment plan.
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Federal student loan forgiveness for Washington residents
If you don't qualify for the Washington state student loan forgiveness program, look into federal loan forgiveness programs. The U.S. Department of Education and other agencies have information on different options for student loan repayment help when you meet certain requirements.
Public Service Loan Forgiveness (PSLF)
For those who complete 120 qualifying payments on their federal student loans, it's possible to have the remaining balance forgiven under the Public Service Loan Forgiveness program.
To receive loan forgiveness, you might need to work full-time at an employer or service agency that’s a government organization or a qualified nonprofit.
In general, PSLF works well with an income-driven repayment plan. Contact your federal loan servicer to switch to an IDR plan that works with PSLF so you can be eligible for loan forgiveness later.
Teacher Loan Forgiveness
The federal government offers the Teacher Loan Forgiveness program, allowing you to receive up to $17,500 in loan repayment help. Student loan borrowers who teach for five years in an area considered a shortage area can take advantage of this program.
Perkins Loan cancellation
If you had a Perkins Loan, you might be eligible for cancellation if you work as a teacher in shortage areas, or if you teach in a field where there's a shortage of educators. For every year of full-time teaching, you can get a portion of your loan forgiven.
Income-driven repayment (IDR) forgiveness
Even if you don't qualify for PSLF or some other loan forgiveness program, you can still potentially get loan forgiveness if you have Direct Loans and you enter into an IDR program. With IDR loan forgiveness, your monthly payments are a percentage of your discretionary income. Depending on the plan you have, you can have a remaining balance forgiven after 20 or 25 years.
If you don't have a Direct Loan, you can use student loan consolidation to meet the requirements and get on an income-driven repayment plan.
What about private student loans?
Private student loans, don’t qualify for many Washington state loan forgiveness or federal loan forgiveness programs. Instead, consider student loan refinancing to lower your interest rates and pay off your loans faster.
For those who have federal loans, but don't qualify for loan forgiveness, refinancing is an option, too. However, if you refinance federal student loans, you lose access to some programs like PSLF, IDR and automatic forbearance and deferment options that come with federal student debt.
Carefully consider your options before refinancing and make sure it's the right move for you. Look for ways to lower your student loan payments, like changing to an income-driven repayment plan, while remaining eligible for federal incentives and benefits.
Scholarships and grants for current Washington students
If you're just starting out in higher education, you can reduce your need for education loans with the help of Washington scholarships and grants. Washington state offers financial aid that can help.
The two grant programs offered by Washington include:
- Washington College Grant. You can receive up to $10,748 per year if you meet the low-income requirements. Grant money can be used at eligible Washington higher education campuses.
- Teacher Grant Program. If you're willing to commit to teaching in a shortage area, you can potentially receive the Teacher Shortage Conditional Grant. There's also the Student Teaching Residency Grant, designed to help those in teaching programs complete their requirements.
In general, it's a good idea to fill out the Free Application for Federal Student Aid (FAFSA) to see if you're eligible for work-study while in college. Additionally, you might need to fill out a FAFSA so schools that offer need-based scholarships can see your information and determine if you're eligible.
Start a Washington state student loan forgiveness program today
Any student loan forgiveness program takes years to finish, whether you use a state-specific program or use a federal program. It's important to weigh your available options and plan ahead. If you want to pursue forgiveness, keep track of your employment to help make applying for student loan forgiveness easier.
Get help from a Student Loan Planner consultant who can help you evaluate your situation, and guide you through your student loan repayment and loan forgiveness options.
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).
