States That Will Pay Off Your Student Loans

Many states have programs that offer assistance in paying off student loans. To be eligible, individuals may need to buy a home or work in specific fields such as healthcare, education, or law. Some state programs require a certain length of residency before receiving benefits, while others are open to newcomers. However, establishing residency may still be necessary, which could involve tasks like obtaining a license or paying taxes in the state.

Below are some state-based repayment assistance programs to consider:

Program for homebuyers and new residents

Maryland’s SmartBuy 3.0 program provides student loan borrowers with the opportunity to finance a home with a 3% down payment and a 30-year conventional mortgage if they owe between $1,000 and $20,000. Participants can also receive a second loan, not a mortgage, at zero percent interest for up to 15% of the home’s purchase price, capped at $20,000. This loan covers the individual’s student loan balance and does not require any monthly payments. The state forgives 20% of the second loan each year for five years, and if the home is sold before the loan is fully forgiven, the remaining balance must be repaid.

Ohio offers two local-level programs that provide student loan assistance to newcomers and potential homebuyers. Participants can receive grants to have 50% of their student loans repaid, up to $50,000, by buying a home in Newburgh Heights for at least $50,000 and residing there for 15 years. At the 10-year mark, individuals will receive 80% of the award amount, with the remaining balance provided at 15 years of residence. For those not ready to buy a home, Hamilton, Ohio’s Talent Attraction Program Scholarship offers up to $15,000 in loan assistance to individuals who move to a neighborhood within Hamilton city limits and hold full-time employment in Butler County or have a full-time remote role. The $15,000 is distributed in $400 monthly payments, requiring participants to stay in the program for around three years to maximize the benefit.

Kansas offers up to $15,000 in student loan repayment assistance over five years to individuals who relocate to one of the state’s 95 rural opportunity zones. This program is only available to those new to the area, who must demonstrate previous residency elsewhere and current domicile in a Kansas rural opportunity zone.

Maine provides residents with a Student Loan Repayment Tax Credit, allowing individuals to receive up to $2,500 annually and a maximum of $25,000 over a lifetime to put towards paying off their student loan. To be eligible, individuals must have earned a minimum annual income, gotten an associate, bachelor’s, or advanced degree from an accredited university after 2007, and make required student loan payments throughout the year.

Programs for healthcare workers

Most states offer student loan repayment assistance programs for healthcare professionals, including mental healthcare workers. Requirements may include working in underserved areas or specific locations within the state. For example, Georgia and Idaho require recipients to work in rural communities. Dentists may also be eligible for student loan assistance, such as Delta Dental of South Dakota’s program that provides up to $125,000 in loan repayment over five years for new dentists licensed in the state who serve a certain percentage of Medicaid-insured patients.

Lawyers and teachers may also have opportunities to receive loan repayment help in certain states, with programs having different requirements and income caps. To learn about education and legal loan assistance programs, individuals can refer to their school’s financial aid office, state’s higher education office, or bar association website.

Before pursuing state-based assistance, it is essential to weigh the pros and cons of each program, particularly if relocation is necessary to access a specific offer. Individuals should thoroughly review program details, confirm requirements, and address inquiries with a designated contact person to ensure the best decision for their financial situation. Additionally, individuals should assess if relocating aligns with their overall financial well-being, considering factors like cost of living, salary, new financial obligations, and lifestyle preferences. It is also advisable to check if there are existing assistance programs in the current state, especially for those in healthcare, education, or legal professions.

Explore unique state-based student loan repayment programs that offer innovative solutions for borrowers. From Maryland’s SmartBuy 3.0 program, which helps homebuyers finance their student loan debt, to Ohio’s initiatives for newcomers and potential homebuyers, these programs provide incentives to address financial burdens. Consider options like Ohio’s grants for buying a home in specific neighborhoods or Maine’s Student Loan Repayment Tax Credit for eligible degree holders. Dive into specialized programs for healthcare workers, lawyers, and teachers, each with varying requirements and benefits. Before making a move for state assistance, carefully evaluate the pros and cons to ensure it aligns with your financial goals and lifestyle. Research thoroughly, understand the details, and weigh the feasibility of relocating for student loan relief. Ultimately, making an informed decision can lead to significant savings and a more manageable repayment journey.

In today’s society, student loan debt has become a heavy burden for many recent graduates. With the average student loan debt reaching over $30,000 in the United States, it’s no surprise that many individuals are struggling to make ends meet while trying to chip away at their student loans. However, there is some good news for those feeling overwhelmed by their student loan debt – some states are offering programs that will help pay off your student loans. In this article, we will explore the states that are offering student loan repayment assistance programs and how you can take advantage of these opportunities.

**Introduction to Student Loan Repayment Assistance Programs**

Student loan repayment assistance programs are initiatives offered by some states to help individuals pay off their student loan debt. These programs can vary in eligibility requirements, the amount of assistance offered, and the duration of the assistance. In general, these programs aim to support graduates who are working in high-demand fields or in underserved communities where the need for professionals is high.

**States That Will Help Pay Off Your Student Loans**

1. **New York**: New York is one of the states that offers student loan repayment assistance programs. The state’s Get on Your Feet Loan Forgiveness Program provides up to two years of student loan repayment assistance for graduates who are working and earning less than $50,000 per year. This program is open to recent graduates who have earned their degree from a college or university located in New York.

2. **Maryland**: Maryland offers the Student Loan Debt Relief Tax Credit program, which provides tax credits to individuals who have at least $20,000 in outstanding student loan debt. The tax credit can be up to $5,000 per year for up to two years. To be eligible for this program, individuals must have earned their degree from a Maryland college or university and be working in a designated high-demand field.

3. **Kansas**: Kansas offers the Rural Opportunity Zone (ROZ) program, which provides student loan repayment assistance up to $15,000 for individuals who move to one of the designated counties in the state. To be eligible for this program, individuals must have earned an associate, bachelor’s, or postgraduate degree from an accredited college or university and be working in a designated profession.

4. **Michigan**: The Michigan State Loan Repayment Program (MSLRP) offers up to $200,000 in student loan repayment assistance for individuals who are working in a Health Professional Shortage Area (HPSA) in the state. This program is open to healthcare professionals, including physicians, dentists, nurse practitioners, and social workers.

5. **Ohio**: Ohio offers the Ohio Dentist Loan Repayment Program, which provides up to $25,000 per year in student loan repayment assistance for dentists who are practicing in underserved areas of the state. This program aims to address the shortage of dental professionals in rural and urban underserved communities.

**How to Take Advantage of These Programs**

If you are interested in taking advantage of these state student loan repayment assistance programs, there are a few steps you can take to get started:

1. Research the eligibility requirements for each program: Before applying for any of these programs, make sure you meet the eligibility requirements. Each program may have different criteria, such as the field of work, income level, or location of employment.

2. Gather required documentation: Once you have determined which program you are eligible for, gather all the necessary documentation, such as proof of employment, proof of student loan debt, and proof of residency in the state.

3. Submit your application: Follow the instructions provided by the state for submitting your application. Make sure to complete all required forms accurately and provide all requested documentation to support your application.

4. Stay informed: Keep track of any updates or communications from the state regarding your application. Be proactive in following up with the state if you have any questions or concerns.


Student loan repayment assistance programs offered by states can be a valuable resource for individuals struggling with student loan debt. By taking advantage of these programs, graduates can alleviate some of the financial burden associated with their student loans and focus on building their careers and achieving their goals. If you are eligible for any of these programs, do not hesitate to explore your options and apply for assistance. Remember, each state program may have its own unique requirements and benefits, so it is important to do your research and find the program that best fits your needs.

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