How to Get South Carolina Student Loan Forgiveness

If you attended college in South Carolina, there’s a good chance that you have student loan debt. The Institute for College Access & Success points out that 60% of South Carolina students graduate with student debt, and borrowers in the state have an average student debt of $32,635.

For those who feel overwhelmed with student loans, there are repayment plans and programs that can help. Currently, there are only two programs for South Carolina student loan forgiveness, but there might be other plans available to you.

Here’s what you need to know about higher education loan help in South Carolina.

South Carolina student loan forgiveness

The loan repayment programs designed for South Carolina borrowers focus on graduate students working in the legal field or working as a teacher who are eligible for the state’s special teacher loan forgiveness program.

Public Interest Law Loan Forgiveness Program

Established in 2002, the Public Interest Law Loan Forgiveness Program is designed to help graduates who attended the University of South Carolina law school.

To qualify, borrowers must be working in a field of public interest law and show that they need loan repayment assistance. Award amounts vary, and applicants must agree to continuous employment in a public interest law field for two years.

SC Teachers Loan

If you plan to teach at a South Carolina school in a subject area of critical need, or in a geographic location of need, you can borrow using the SC Teachers Loan program.

Undergraduates and graduate students can borrow an aggregate of $27,500 to help them pay for school. Once you begin teaching, you can receive up to $5,000 in forgiveness for each full year of teaching, depending on your circumstances.

South Carolina scholarships and grants

Another option to reduce student loan debt is getting a scholarship or grant. South Carolina offers financial aid to high school students who plan to get a higher education. There are also federal student aid programs, including grants and work-study, that can help lower how much you end up borrowing toward higher education.

Some of the available scholarships and grants that can reduce the loan amount needed to complete school include:

• Palmetto Fellows Scholarship. This opportunity is designed to recognize academic achievement and offers up to $7,500 throughout school.
• LIFE Scholarship. LIFE is another merit-based scholarship that helps high school students with aid up to the cost of attendance at an eligible school in South Carolina.
• HOPE Scholarship. Freshmen students who don’t qualify for the Palmetto or LIFE scholarship can get help paying for their higher education through the HOPE Scholarship.
• Need-based grant. Students demonstrating financial need can get up to $2,500 a year for full-time enrollment or up to $1,250 a year for half-time enrollment.

Federal loan forgiveness programs

If you don’t qualify for the South Carolina programs, you can get help with your student loan payments through different federal programs.

Public Service Loan Forgiveness (PSLF)

After making 120 qualifying payments while working at an eligible nonprofit or government job, you might be eligible for the Public Service Loan Forgiveness program. Additionally, in some cases, you might be able to take advantage of the expanded PSLF waiver that is in effect through October 2022.

PSLF works best in combination with income-driven repayment plans, so consider those repayment options when tackling your loan balance after graduation. You must have a federal Direct Loan to qualify and private student loans aren’t eligible.

See how much you can get forgiven using our PSLF forgiveness calculator.

Teacher Loan Forgiveness

Teachers who commit to five consecutive years of teaching in a designated area can receive up to $17,500 in federal student loan forgiveness.

Note that you can’t receive credit for Teacher Loan Forgiveness and PSLF at the same time. For example, if you want your existing payments to count toward Teacher Loan Forgiveness, you’ll have to make an additional 120 separate qualifying payments for PSLF.

National Health Services Corps Loan Repayment

Certain graduates in healthcare professions can take advantage of the various loan repayment assistance options available through the National Health Services Corps (NHSC).

Eligible professions include physicians, nurses, physician assistants, social workers, psychologists and others. Award amounts depend on your specialty as well as years of service, and whether you work full-time or half-time. Awards can be as much as $100,000 in forgiveness.

Perkins Loan cancellation

If you have a Perkins Loan, you might qualify for cancellation if you work in qualified fields. Eligible careers through this program include teaching, law enforcement, fire fighting and other professions. A portion of the loan is forgiven for each year that you continue in the profession.

Income-driven repayment

There are four different income-driven repayment programs available for those with qualifying loans. Federal student loans are eligible, while private student loans aren’t.

Depending on the program you qualify for, you might be able to reduce your monthly payments and receive forgiveness for the remaining balance after 20 or 25 years.

In some cases, only debt from the Direct Loan program is eligible for this type of repayment and cancellation. If you have debt from the older FFEL program (sometimes called Stafford Loans), you might need to use a Direct Consolidation Loan to access this program. Some PLUS Loans are also eligible for income-driven repayment.

Other ways to lower your South Carolina student debt

If you don’t meet the eligibility requirements for an SC student loan forgiveness or income-driven repayment option, refinancing your loans might help lower your interest rate. Qualification for refinancing depends on the private lender and its criteria.

You can refinance both federal student loans and private student loans, but it’s important to consider the consequences. Refinancing federal loans means losing access to advantageous programs, like PSLF or income-driven student loan repayment.

One option is refinancing your private student loans and getting a separate Direct Consolidation Loan for your federal student loans to retain federal benefits.

Before moving forward with refinancing, explore state and federal loan programs and see if you’re eligible for forgiveness or cancellation. Additionally, our student loan experts can help you review repayment plans and compare your options to find the smarter path forward from your student loan debt.