6 Programs for Student Loan Forgiveness in Iowa

Pursuing higher education can mean taking on student debt to pay for education expenses. How much that amount is and how many students graduate with debt varies by state. For students in Iowa, the average student loan debt for the class of 2019-20 was $29,560, according to The Institute for College Access & Success (TICAS) with 60% of students graduating with debt.

To help make repayment easier, you can look for loan forgiveness programs in your state. Below we’ve gathered the top programs for student loan forgiveness in Iowa.

6 Programs for student loan forgiveness in Iowa

If your financial aid package didn’t offer enough grants and scholarships, you likely needed student loans to pay for college. It’s possible to have federal student loans from the U.S. Department of Education or private loans from a bank, or another type of private lender.

It’s important to know what type of student loans you have as some loan forgiveness options may only be available for federal loan borrowers. The good news is that there are federal student loan forgiveness programs (more on that later) as well as state-specific programs. Here are the programs for student loan forgiveness in Iowa.

1. Rural Iowa Primary Care Loan Repayment Program

Doctors in Iowa who are willing to serve in an eligible rural community may qualify for the Rural Iowa Primary Care Loan Repayment Program. This program was designed to address health shortage areas and can offer applicants up to $200,000 with a service commitment of five years.

Eligibility requirements:

• Must be a full-time student pursuing an MD or DO degree.
• Must be a student of either Des Moines University College of Osteopathic Medicine or University of Iowa Carver College of Medicine.
• Gets recommended by a contact from the school.
• Take part in a qualifying residency and become licensed.
• Commit to five consecutive years of service.

Forgiveness amount: Up to $200,000, or $40,000 each year (only toward federal loans, though if you refinance, you must get in touch with Iowa College Aid).

Service commitment: Five years

How to apply: Get in touch with the appropriate contact at your school.

2. Mental Health Professional Loan Repayment Program

Iowa has a loan repayment program for mental health professionals who work in a non-prescribing capacity in a designated shortage area. Qualified applicants could receive up to $40,000 in loan repayment assistance over a period of five years of full-time service. It’s also possible to adjust this amount and work part-time.

Eligibility requirements:

• Must attend and graduate from an eligible Iowa university with either a master’s degree in counseling, social work, or marriage family therapy or a doctorate in psychology.
• Must complete two years of clinical practice.
• Have a valid license as a non-prescribing practitioner from Iowa Department of Public Health.

Forgiveness amount: Up to $40,000, or $8,000 each year (only toward federal loans, though if you refinance, you must get in touch with Iowa College Aid).

Service commitment: Five years

How to apply: Check this page, as applications are open as of Spring 2023.

3. Teach Iowa Scholar Program

The Teach Iowa Scholar Program may be a good fit if you’re a teacher looking for student loan forgiveness in Iowa. The program is designed to attract teachers to shortage areas and, in exchange, teachers could receive up to $4,000 each year for up to five years.

Eligibility requirements:

• Be a recent graduate and complete all teacher prep coursework and degrees.
• Be in the top 25% academically in your class.
• Obtain a qualifying full-time job at a school in a designated shortage area.
• Have an Iowa teaching license.
• Submit an application by November 18, 2022.

Forgiveness amount: $4,000 per year for up to five years ($20,000 total toward federal loans).

Service commitment:  Up to five years

How to apply: Read more about the program and fill out an application, which opens on September 1.

4. Health Professional Recruitment Program

The Health Professional Recruitment Program is a program for student loan forgiveness in Iowa caters to various types of health professionals. The total award can be up to $50,000 for four years of service. Applicants must qualify as a nurse practitioner, registered nurse, physician, physician assistant, occupational therapist, physical therapist or athletic trainer.

Eligibility requirements:

• Complete your education and graduate from an eligible university in Iowa.
• Work in one of the qualified professions listed above.
• Must work in a high-need community that can match funds.
• Serve the high-need community for four years.

Forgiveness amount: Up to $50,000, or $12,500 per year for up to four years (only toward federal loans, though if you refinance, you must get in touch with Iowa College Aid).

Service commitment: Four years

How to apply: Fill out an application and submit it by March 31.

5. Rural Iowa Veterinarian Loan Repayment Program

Veterinarians who will soon graduate or are recent graduates/completed their degree in the previous five years may be eligible for student loan help by serving rural communities through the Rural Iowa Veterinarian Loan Repayment Program. This program offers up to $60,000 in assistance, paid out at $15,000 per year.

Eligibility requirements:

• Have a doctor of veterinary medicine degree from the past five years or be in your final year of schooling.
• Has or will obtain a valid license to practice veterinary medicine.
• Obtains full-time work in an eligible community.
• Serve for four years.
• Has not previously been awarded any help through the National Veterinary Medicine. Loan Repayment Program/National Institute of Food and Agriculture.

Forgiveness amount: $60,000 or $15,000 per year (toward federal loans only).

Service commitment: Four years

How to apply: Keep an eye on program updates about when applications open up in February 2023.

6. Health Care Award Program

Nurse educators may be able to receive student loan forgiveness in Iowa through the Health Care Award Program. This program is designed to attract nurse educators to teach at eligible Iowa universities. Qualified applicants can receive $6,000 per year for up to five years of service for a total of $30,000.

Eligibility requirements:

• Can be in final year of school or a licensed professional.
• Must work as an advanced registered nurse, nurse practitioner, or physician assistant who commits to teaching at a qualified university.
• Must serve for five years an be in an eligible area.
• Submit application by March 31.
• Complete form proving employment and service.

Forgiveness amount: $6,000 per year for five years of service (for a total of $30,000).

Service commitment: Five years

How to apply: Submit an application for the next round beginning in January 2023.

Federal student loan forgiveness programs

Don’t see any programs for student loan forgiveness in Iowa that you qualify for? Don’t give up just yet. If you have federal loans that are from the federal government, you have options. Unfortunately, student loan forgiveness programs aren’t available for private student loan borrowers.

Public Service Loan Forgiveness Program

A public sector job, like a nonprofit or government agency, may not bring home the big bucks, but there is an underrated perk for federal loan borrowers. The Public Service Loan Forgiveness Program (PSLF) allows borrowers to get their remaining balance forgiven after 10 years of service and 120 monthly payments.

You’ll want to fill out the Employer Certification Form (ECF) and also look into TEPSLF for expanded eligibility.

Income-driven repayment plan

Working in the public sector for a decade can be a commitment that you don’t want to make. But there is an alternative way to get student loan forgiveness with a longer time horizon.

If you repay federal loans on an income-driven repayment plan (IDR) — including Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), or Income-Contingent Repayment (ICR) — you can get your student loan balance forgiven after the 20- or 25-year repayment term. In the meantime, these programs cap loan payments at 10% to 20% of discretionary income as well. Note monthly payments under SAVE are capped at 5% to 10% of discretionary income, depending on whether you have undergraduate or graduate loans (beginning July 2024).

You may be required to pay taxes on the forgiven amount based on the tax laws at the time. Loan forgiveness is currently tax-free up until 2025. To qualify, talk to your loan servicer about getting on the right repayment plan. You may also qualify for the IDR waiver, which includes expanded eligibility as well.

The bottom line

Paying back student loans can be a drain on your financial resources. Reviewing loan repayment assistance programs and forgiveness options both in your state and on a federal level can provide some relief. If you need help with your loans, book a consultation with Student Loan Planner.