2 Top Options for Student Loan Forgiveness in Pennsylvania

Every state offers its own student loan forgiveness and assistance programs. Pennsylvania is no exception. Student loan forgiveness in Pennsylvania is available for health-care professionals and lawyers. Below are the student loan forgiveness opportunities for Pennsylvania borrowers.

Student loan forgiveness in Pennsylvania

There are two ways you can receive student loan forgiveness in Pennsylvania, both of which are based on your profession.

1. Pennsylvania Primary Care Loan Repayment Program

Student loan forgiveness for nurses in Pennsylvania can be challenging to find. But the Pennsylvania Primary Care Loan Repayment Program (LRP) has opportunities for multiple fields of healthcare, including nursing.

Pennsylvania wants to increase access to primary medical, dental and behavioral health-care services in underserved communities. To do this, it needs to recruit and keep health practitioners. And the Primary Care LRP seeks to do exactly this.

Who is eligible?

You must maintain a valid Pennsylvania license or certification in your field. Eligible primary care fields include:

• Physicians (primary care and psychiatrists only)
• General Dentists
• Physician Assistants (PA-C)
• Certified Registered Nurse Practitioners (CRNP)
• Certified Nurse-Midwives (CNM)
• Dental Hygienists
• Psychologists
• Licensed Clinical Social Workers (LCSW)
• Licensed Professional Counselors (LPC)
• Marriage and Family Therapists (MFT)

To be eligible for forgiveness, you must be a graduate of an accredited educational program in the United States.

What is the service commitment?

You must work at a primary care practice site approved by the LRP. You’ll care for the underserved and provide services to all without regard for ability to pay. The facility can be a designated Health Professional Shortage Area (HPSA) or serve at least 30% low-income patients.

You’ll commit to a two-year contract within the program and can choose to work full time or half time.

How much can be forgiven?

The amount forgiven depends on how much you choose to work.

For example, physicians and dentists can receive up to $100,000 for a full-time service commitment. But if you’re working part-time, you can receive up to $50,000.

However, the other professions listed above can receive up to $60,000 for full-time service and up to $30,000 for part-time work.

You must submit your application online.

2. Pennsylvania Interest on Lawyers Trust Accounts Loan Repayment Assistance Program

The Pennsylvania Bar Foundation’s Pennsylvania (PA) Interest on Lawyers Trust Accounts (IOLTA) Loan Repayment Assistance Program helps attorneys employed at IOLTA-funded legal services organizations manage their student loan debt so they can afford to remain in public service.

Who is eligible?

Loan applicants must have a license to practice law in Pennsylvania. Alternatively, you must be permitted to practice law under Bar Admission Rule 31. In addition, you must meet the following requirements:

• Have a valid Pennsylvania Supreme Court-issued identification number
• Be in good standing and practice law as an employee of an IOLTA-funded organization
• At the time of application, the applicant’s total gross salary may not exceed $66,000. If your annual net debt is greater than or equal to 10% of your current annual gross salary, you may apply regardless of the annual gross salary cap.
• At the time of application, the amount of educational debt must be greater than or equal to the amount of the LRAP grant
• The attorney’s qualifying educational debt must be in satisfactory repayment.

If you meet these requirements, you must also agree to a service commitment.

What is the service commitment?

You’ll sign a 12-month service contract and must serve at a qualifying organization. You can find these organizations under the IOLTA-funded organizations directory.

If you continue to meet the eligibility criteria, you can renew your contract a total of 10 times. In other words, you can receive forgiveness for up to 10 years if funding continues to be available.

How much can be forgiven?

This is an upfront forgiveness program. It provides one-year loans for each contract. However, the amount you receive depends on the number of applicants and the funding for that year. If you qualify, you’ll receive the distributed amount quarterly.

However, these funds must be used to repay loans incurred for undergraduate and law school education costs. This can also include bar exam study. The amount extended is considered a loan until the end of the year when the service contract is complete. Then it will be forgiven.

You can use this money to pay down federal student loans and private student loans. Forgiveness programs that allow you to pay down private student loans are rare, so if you’re eligible, it might be a good idea to take advantage of this program.

Applications for the PA IOLTA Loan Repayment Assistance Program must be submitted online.

There are more options in the state of Pennsylvania to help pay for school. If you’re still a student, you can look into state-funded grants and educational aid, too.

Don’t forget about Pennsylvania grants

If you’re still a student in Pennsylvania, you have more funding opportunities. Pennsylvania offers a number of grants and educational aid for students who are also residents.

Although the Pennsylvania Higher Education Assistance Agency (PHEAA) is more commonly known for servicing student loans, it also sponsors the majority of Pennsylvania state grants. Some of these grants include:

• Pennsylvania State Grant Program
• Blind or Deaf Higher Education Beneficiary Grant Program
• Partnerships for Access to Higher Education (PATH) Program
• Pennsylvania Chafee Education and Training Grant Program
• Postsecondary Educational Gratuity Program (PEGP)

Besides these grants, Pennsylvania also has a state work-study program, which partners eligible students with companies in their career field.

If you’re done with school, look into federal loan forgiveness options to see how they compare to the state forgiveness options.

Pennsylvania loan forgiveness vs. federal loan forgiveness

Federal loan forgiveness options are available to anyone with federal loans who meets the requirements.

When looking at the forgiveness programs, you’ll first want to check your eligibility. Then start by comparing the following loan forgiveness terms:

• Length of time you’ll be making payments until forgiveness
• Amount that will be forgiven
• Service commitments, including location and employer
• Tax consequences

Public Service Loan Forgiveness (PSLF) is a good one to begin comparing to state forgiveness programs. PSLF offers total forgiveness of your student loans after 10 years of qualifying payments and service. It’s a common strategy to pursue the PSLF program for anyone in public service, including physicians and lawyers.

Key to student loan forgiveness in Pennsylvania

Choosing a forgiveness program is never a guarantee. However, making sure to stay on track with paperwork and the requirements can help ensure you’ve done your part.

If you’ve got a mountain of student loan debt and you’re unsure about which forgiveness program to pursue, check in with the team at Student Loan Planner®. We specialize in helping those with more than $50,000 in student loans develop a solid plan to pay them off.