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States that will pay off your student loans for moving there

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Paying off student loans can be a difficult journey, in some cases taking 20 years or more. While there are federal programs that will forgive your student loans after a certain number of payments, these can be hard to qualify for. Plus, borrowers with private student loans are not eligible for these programs.

Thankfully, there are other niche ways to find student loan forgiveness, including state-based programs that pay off your loans just for moving there.

States that will pay off student loans for moving there

Whether it’s to attract a younger population or stimulate the local economy, states can have a variety of reasons for offering student loan forgiveness to new residents. Before packing your bags, read the eligibility requirements to see if the program is the right fit for you. In some cases, you could get a significant portion of your debt forgiven.

Kansas

If you move to one of 95 counties in Kansas designated as a Rural Opportunity Zone, you could be eligible for student loan repayment assistance of up to $15,000 over a period of five years. You must have a student loan balance in your name and be a new resident of one of these designated areas to qualify.

Maine

Maine offers student loan payment reimbursement through a program called the Opportunity Maine Tax Credit. You must be a full-time resident of Maine to be eligible, and there are other eligibility requirements based on the year you graduated.

Depending on your degree, when you graduated and how much your monthly student loan payments are, you may be eligible to receive more than $4,000 in student loan forgiveness.

Maryland

Maryland’s SmartBuy 3.0 program provides $5,000 in down payment assistance and student loan repayment assistance to borrowers who want to buy a house. You must have at least $1,000 in student debt to participate, and the program will pay off a student loan amount equal to 15 percent of the home cost, with a maximum payoff amount of $30,000. To be eligible for this program, the payoff amount must completely eliminate the homeowner’s student loan balance.

Michigan

If you agree to work as a health care provider in a Health Professional Shortage Area in Michigan, you may qualify for up to $200,000 in student loan repayment assistance through the Michigan State Loan Repayment Program. You must participate in the program for at least two years to qualify for the full repayment assistance amount.

Paying off student loans if you can’t move

If you aren’t able to relocate and you don’t live somewhere with student loan forgiveness programs that you are eligible for, there are still some options available.

Federal student loan forgiveness

If you have federal student loans, you may be eligible for one of these federal student loan forgiveness programs:

  • Public Service Loan Forgiveness. This program requires you to work in a public service job for 10 years, after which time you could have your remaining student loan balance forgiven.
  • Teacher Loan Forgiveness. Teachers who work for five consecutive years in a low-income school could have up to $5,000 or $17,500 of their student loans forgiven, depending on the subject they teach.
  • Perkins Loan Cancellation. If you have a Perkins Loan, you could have up to 100 percent of your loans forgiven by working for five years in an eligible position. This program is available to teachers, nurses, firefighters, librarians and more.
  • Income-driven repayment plan. There are several income-driven repayment plans for federal loans that base your monthly payment on your income and family size. After 20 or 25 years of payments, your remaining balance will be forgiven.

Employer repayment assistance

If you have student loans, your employer may offer up to $5,250 in student loan repayment assistance. This amount is tax-free for both borrowers and employers. Ask your HR department if your company offers this benefit.

Major companies like Google, Aetna and Fidelity Investments also offer their own student loan repayment assistance. As student debt continues to be a mounting problem for young professionals, more and more companies will likely offer repayment assistance as a benefit.

Occupation-based student loan forgiveness

Certain professions like nurses, doctors, lawyers and teachers have access to specific student loan forgiveness programs. For example, attorneys who work for the Department of Justice for three years could have up to $6,000 in student loans forgiven per year. Nurses who work in underserved communities could also have up to 85 percent of their balance forgiven through the Nurse Corps Loan Repayment program.

Try searching online for special forgiveness programs for your profession, especially if you’re a teacher, nurse, doctor or lawyer.

Private student loan repayment

If you don’t qualify for federal forgiveness programs, there are still ways to make your student loan repayment more manageable.

If you have private student loans, one of the best ways to do this is by refinancing. This gives you a new interest rate, a new repayment timeline and a new monthly payment. If you qualify for a lower interest rate, you could save a significant amount over the life of your loan.

You might also consider asking for deferment or forbearance of your student loans, which temporarily pause payments.

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Written by
Emma Woodward
Contributing writer
Emma Woodward is a former contributor for Bankrate and a freelance writer who loves writing to demystify personal finance topics. She has written for companies and publications like Finch, Toast, JBD Clothiers and The Financial Diet.
Edited by
Student loans editor