Your Guide to Louisiana Student Loan Forgiveness

If you attended college in Louisiana, there’s a good chance you have student loan debt. After all, The Institute for College Access & Success points out that 53% of Louisiana students graduate with debt. On average, borrowers have $26,284 after completing their undergraduate degrees.

The good news is that Louisiana has repayment plan options that offer some loan forgiveness, depending on your chosen career after finishing school.

Let’s look at the loan forgiveness program options available for Louisiana residents.

Louisiana student loan forgiveness

Here are the top Louisiana repayment options for those who need help with their education loan balances.

1. State Loan Repayment Program

Eligibility for the Louisiana State Loan Repayment Program is designed for those who work in healthcare services, including physicians, social workers, nurses, dentists, dental hygienists and others. Participants must work in a designated healthcare shortage area and work full-time for at least two years.

This program includes private student loans and loans issued through the U.S. Department of Education.

2. Louisiana Bar Association Loan Assistance Repayment Program

Those who complete a law school program and are members of the Louisiana Bar, can get help paying off higher education loans for law school.

The Louisiana Bar Association Loan Assistance Repayment Program offers student loan payment help, but you must earn less than $50,000 a year working full-time for a non-profit specializing in helping those with low incomes.

Federal student loans, private student loans, bar exam loans and similar loans are considered for this student loan repayment program. However, it’s important to note that undergraduate student loans aren’t included.

3. John R. Justice Student Loan Repayment Program

This is another program for student loan borrowers who attended law school and work in the law profession. However, the John R. Justice Student Loan Repayment Program is a partnership between the federal government and the state government.

Prosecutors and public defenders can access this program. Additionally, this program is open to you if you work as a full-time employer for a nonprofit under contract with the state government as a service agency for law-related issues. To meet eligibility requirements, you must have at least $20,000 in outstanding student loan debt.

Louisiana grants and scholarships

If you’re hoping to reduce the amount you need to borrow, looking for student aid for undergraduate work can help. Louisiana has some grant and scholarship programs that can provide financial assistance and reduce the need for student loan debt.

• GO Grant. Need-based program that offers up to $3,000 per year to low- and moderate-income students and nontraditional students.
• Taylor Opportunity Program for Students. This financial assistance program has four different awards based on various eligibility criteria. Students must attend a public school or an approved trade institution.
• Rockefeller State Wildlife Scholarship. This award is up to $2,000 annually for undergraduate students, and for graduate students, it’s up to $3,000 annually. You must be pursuing a degree related to forestry, marine science or wildlife.

Check with other scholarship providers and apply for federal student aid to see if you can reduce your need for student loans by getting financial aid in grants and scholarships.

Federal loan forgiveness programs

In addition to Louisiana student loan payment help, you can also look into federal loan forgiveness programs to get rid of your student debt faster.

Public Service Loan Forgiveness program (PSLF)

To participate in PSLF and earn forgiveness, you must work for a qualified nonprofit or government employer and make 120 qualifying payments toward your eligible federal student loans.

After fulfilling all of the PSLF requirements, your federal student loan balance is forgiven, typically after ten years. Be aware of special loan waiver programs available for a limited time due to Biden Administration efforts.

Teacher Loan Forgiveness

In addition to PSLF, teachers have another forgiveness program to consider. After five years of service, the Teacher Loan Forgiveness program offers up to $17,500 in student loan forgiveness. You must work in a shortage area.

National Health Service Corps

The National Health Service Corps offers a variety of programs offering up to $100,000 in loan cancellation, depending on whether you work part- or full-time and how many years you work. Additionally, the healthcare profession you choose impacts how much you receive.

Perkins Loan Cancellation

Depending on your situation and profession, you might be eligible to have your Perkins Loan canceled. You can have a portion of the loan canceled for every year you meet the program’s eligibility requirements.

Learn more about Perkins Loan Cancelation.

Forgiveness through an income-driven repayment plan

Finally, there are different income-driven repayment programs available. These allow you to make reduced payments for 20 or 25 years, depending on your income and the plan, and have your remaining balance forgiven at the end.

If you can’t afford your payments, choosing an income-driven plan can help you make on-time qualifying payments without needing forbearance or deferment.

Before taking advantage of one of these programs, it’s important to note that not all loans — even federal student loans — are eligible. Some programs might not be available to those with a PLUS Loan unless they get a consolidation loan. Other programs aren’t available to those who have loans under the old FFEL (Stafford Loan) program; you need a Direct Loan to qualify.

In most cases, private student loans aren’t available.

Other options to reduce your student loan debt

If you aren’t eligible for loan forgiveness or income-driven repayment, you might need to look at other options to reduce your student loan debt.

Refinancing is one way to reduce what you pay and get out of student debt faster. In some cases, you might be able to get a lower interest rate and a lower monthly payment to help you manage your cash flow. However, if you choose to refinance your student loans, you lose access to federal programs like PSLF and income-driven repayment.

Carefully consider your situation, and check with lender requirements to see if you can refinance. You can also speak with a Student Loan Planner consultant who can help you create a plan to get out of student loan debt quickly.