State Forgiveness – Nevada

According to The Institute for College Access & Success, 46% of students attending a four-year university in Nevada graduate with student loan debt. The average amount of student loan debt held by Nevada students in the class of 2020 was $21,357.

This type of debt can place a burden on graduates, making it hard to meet other obligations due to student loan payments. One way to combat loans from higher education is by looking for student loan forgiveness programs. Qualifying graduates can have some — or even all — of their debt forgiven.

Here’s what you need to know about student loan repayment programs available to graduates in the state of Nevada.

Nevada student loan forgiveness

Only one state-specific program for student loan borrowers in Nevada results in debt cancellation. However, there are other opportunities in Nevada to get student loan debt relief.

Nevada Health Service Corps

Established in 1989, the Nevada program encourages health professionals to practice in underserved areas. Nevada Health Service Corps funds come through a federal partnership, and providers must apply.

Amounts vary based on your health specialty. You must work full-time for at least two years to qualify for the program. You must also practice in an area that meets federal designates for healthcare shortages.

Nevada Promise Scholarship

To reduce your need for student loans, getting a Nevada scholarship is possible. The Nevada Promise Scholarship offers financial aid to students at participating community colleges. This is what’s known as a last-dollar scholarship, meaning that it covers registration and other mandatory fees that aren’t paid for out of other financial aid.

It’s important to note that Nevada students attending community college in the state do not have to pay tuition. One of the reasons that Nevada’s average student loan debt is below the national average is due to some of its programs to help students avoid high costs.

Navient Settlement

Although this type of loan cancellation is limited to affected borrowers, it still offers valuable relief. Some Nevada students who had Navient as a federal loan servicer saw loan forgiveness as the result of a lawsuit that the attorney general participated in.

Navient was accused of steering students toward forbearance programs instead of an income-driven repayment program. Those forbearance programs came with fees, allowing Navient to pad its profits rather than providing borrowers with the information needed to access more affordable repayment plans.

Those affected shared $17 million in student loan debt relief due to practices employed by Navient. Another $1 million was paid in restitution for nearly 4,000 federal loan borrowers in the state of Nevada. Affected borrowers need to check their StudentAid.gov accounts to update their addresses.

Federal loan forgiveness programs

Nevada universities and colleges offer a variety of different programs aimed at low-income students to help them cover costs. The UNLV Grant for those attending school in Las Vegas, and the Nevada Guarantee for those at the University of Nevada, Reno, can cover some tuition expenses and even some of the costs of books.

However, if you don’t qualify for these programs, you might have a loan balance when leaving school. That’s where federal loan forgiveness programs can help you.

Public Service Loan Forgiveness (PSLF)

For those who work in the nonprofit sector or for a government entity, it’s possible to obtain Public Service Loan Forgiveness after making 120 qualifying payments. File an employer certification form each year so that the U.S. Department of Education can better track your progress.

After making your qualifying student loan payments, your remaining loan balance will be forgiven. Only federal loans are forgiven under PSLF.

Teacher Loan Forgiveness

The federal government offers loan forgiveness for teachers who complete five years of work in underserved areas. You can receive up to $17,500 in education loan forgiveness. In Nevada, that’s almost enough to pay off the average student loan debt held by graduates.

Perkins Loan cancellation

For those who have Perkins Loans, it’s possible to have them canceled if you work in certain professions. Teachers, firefighters, law enforcement officers, nurses and others can have some of their loans canceled for each year of service, up to five years.

If you work in a qualifying profession for five years, 100% of your Perkins Loan can be canceled.

Income-driven repayment

Another option is income-driven repayment. There are four repayment options under this program. Monthly payments are figured based on income. After being on one of these programs for 20 or 25 years, depending on the terms, your remaining loan balance is forgiven. However, it’s important to note that income-driven repayment is only available for certain Direct Loans.

Income-driven repayment can be used in conjunction with other federal programs, like PSLF and Teacher Loan Forgiveness.

Other options to reduce your student loan debt

If you don’t qualify for Nevada student loan forgiveness or one of the federal loan programs, you might be able to refinance your student loans. Refinancing creates one larger loan, which is used to pay off your original student loans. It results in one interest rate and one payment. In some cases, this might be a lower interest rate — allowing you to save money and pay off your debt faster.

However, it’s important to note that student loan refinancing is a type of private loan. Your credit score will be checked, and if you aren’t eligible for a good rate, you might need a cosigner to help you qualify.

Additionally, if you refinance federal student loans, you lose access to government benefits. Private student loans aren’t eligible for federal deferment, income-driven repayment or PSLF, for example. If you think you might need these benefits in the future, a Direct Consolidation Loan for your federal debt might be a better option. You can still refinance any private loans you have.

Before refinancing, research state and federal forgiveness programs and consider your own financial situation. Look for ways to reduce your student loan balance with free money before refinancing.

Our team of student loan experts can help you explore all of your repayment options and put you on the most efficient path to becoming student debt-free. Schedule a consultation today.