Alaska Student Loan Forgiveness Options for Student Loan Borrowers

The state of Alaska is huge, though it has a small population relative to its size. According to the most current population estimates from the U.S. Census Bureau, as of July 2022, the state of Alaska has 733,583 residents. Despite its limited number of people, 47% of graduates in Alaska have student loan debt. Borrowers owe an average of $26,356, based on data from The Institute for College Access & Success (TICAS).

If you’re an Alaska resident struggling with student loan repayment and want repayment assistance, there are options. Below we cover Alaska student loan forgiveness and loan repayment programs. 

Alaska student loan forgiveness options

Student loan payments can take a good chunk out of your paycheck. Having any student loan repayment assistance or a forgiveness program option can help. Alaskans can look into the following student loan forgiveness programs.

SHARP Program 

Health professionals in Alaska willing to work in underserved areas may be eligible for loan repayment assistance with the SHARP Program. There are two programs:

• SHARP-1. Designed to help medical, dental, and behavioral health providers offering primary care in a Health Professional Shortage Area (HPSA).
• SHARP-3. A newer program launched in 2021 that expands eligibility for health care providers and offers incentives to work in rural areas. 

SHARP-1 has a two-year service commitment, while SHARP-3 has a three-year commitment. 

Your eligibility for loan repayment assistance depends on the program and your job position. For example, for the SHARP-1 program, positions in Tier 1 with regular-fill positions may offer up to $35,000. For positions in Tier 1 that are considered Very-Hard-To-Fill, that number goes up to $47,000. Tier 2 regular-fill positions offer up to $20,000, and Tier 2 Very-Hard-To-Fill positions increase to $27,000. These numbers are cut in half for half-time workers. 

The SHARP-3 offers between $7,500 to $23,625 for half-time positions based on Tier and between $15,000 and $47,250 for full-time positions based on Tier. You can apply for either SHARP program using the same application. 

Indian Health Service Loan Repayment Program 

Health care providers and clinicians who commit to working with the Alaska Native community may qualify for the Indian Health Service (IHS) Loan Repayment Program (LRP). Health care professionals in various fields may qualify, including:

• Physicians
• Nurses
• Dentists
• Psychologists
• Optometrists
• Pharmacists
• Occupational therapists
• Physician assistants
• Other specialties like dieticians, nutritionists, acupuncturists, and more 

Through this program, eligible providers can receive up to $50,000 in loan repayment assistance in exchange for a two-year commitment. 

To qualify, applicants must be U.S. citizens, have a license, a health profession degree, and agree to work in an Indian Health facility. You can learn more about the program and apply here.

Additional Alaska student loan forgiveness programs

These two programs are the main ways to get Alaska student loan forgiveness. However, if you work in health care, you may be eligible for national programs that include Alaska, such as the National Health Service Corps (NHSC) Loan Repayment Program and the Nurse Corps Loan Repayment Program.

The NHSC LRP offers eligible candidates up to $50,000 in loan repayment assistance for two years of service. The Nurse Corps Loan Repayment Program pays 60% of your education loans with a two-year service commitment and offers an additional 25% if you serve a third year. 

Other student loan forgiveness options for Alaska borrowers

Don’t meet the eligibility requirements for the Alaska student loan forgiveness options listed above? Other forgiveness plans are available.  

Alaskans with federal student loans from the Department of Education can look into several options listed below. While not exclusive to Alaskans, these loan forgiveness programs may open up opportunities. 

Public Service Loan Forgiveness Program

Alaskans who work in the public sector, either in a government capacity or at a nonprofit entity, may be eligible for the Public Service Loan Forgiveness (PSLF) program. Aside from the employment requirement, student loan borrowers must have Direct Loans and repay student loans on an income-driven repayment plan (IDR). 

Once eligible borrowers make a total of 120 payments, they can apply for forgiveness and get the loans wiped away. Though getting forgiveness this route will take a decade of working in public service — and a potentially low salary along with it — you won’t have to pay taxes on the forgiven loan amount. 

Income-driven repayment

PSLF offers a relatively quick route to student loan forgiveness with 10 years of service. However, the forgiveness is tied to employment, which means some borrowers will be excluded. Luckily, there’s another option.

Borrowers working in the private sector or who don’t meet the exact employment requirements for PSLF should consider income-driven repayment forgiveness. 

In order to participate, you must enroll in an IDR plan. The four options include:

• Saving on a Valuable Education (SAVE)
• Pay As You Earn (PAYE)
• Income-Based Repayment (IBR)
• Income-Contingent Repayment (ICR)

Depending on the repayment plan you choose, your monthly payment comes out to be 10% to 20% of your discretionary income. Each plan has a different repayment term for forgiveness, but typically you can expect your loan balance to be forgiven in 20 to 25 years. However, the new SAVE plan offers more generous borrower benefits, including lower monthly payments for undergraduate borrowers and the possibility for faster forgiveness for small debt borrowers.

IDR forgiveness is a much longer timeline than PSLF, but it’s a forgiveness option nonetheless. As a disclaimer, understand that forgiveness under IDR may come with tax consequences. But at this time, forgiveness taxation is on hold until 2025. 

Teacher Loan Forgiveness

Teachers in Alaska with federal loans should look into Teacher Loan forgiveness. There’s also an employment requirement for this loan forgiveness option, stating that eligible candidates need to work five consecutive years in a full-time capacity at a qualifying low-income school. 

Teachers who meet the requirements of being “highly qualified” in subject areas like math,  science, and special education may receive up to $17,500 in loan forgiveness. Other teachers receive a smaller forgiveness amount of $5,000. 

PSLF is generally a better option if you can commit to teaching for the long haul though. If you have about five years (or close to it) and are considering a career change, this may be an option to consider. 

Next steps to pursue Alaska student loan forgiveness 

Getting student loan forgiveness in Alaska is possible through the various programs listed above. Though many are in health care or have other employment requirements, they can be a good fit for those who qualify. If you don’t meet the standards necessary for forgiveness and have loans from the federal government, expand your options to look at federal programs as well. 

If you need help with your student loan repayment and want customized support, book a consultation with Student Loan Planner.