Your Guide to Student Loan Forgiveness in Utah

Living in Utah can come with a variety of perks, including access to the great outdoors and a relatively low cost of living. However, if you completed school in Utah, you might have student loan debt.

In fact, 39% of Utah graduates have some type of education loan, and the average amount of student loan debt is $18,344, according to The Institute for College Access & Success (TICAS). If you’re looking for a way to handle loan payments and potentially receive student loan forgiveness, here are some of the programs available to college students and graduates.

Student loan forgiveness in Utah

The two main student debt forgiveness programs in Utah seek to benefit health professionals. Students also have the option to reduce the amount of money they borrow by applying for financial aid and looking into various scholarships offered to Utah college students.

1. Health Care Workforce Financial Assistance Program (HCWFAP)

This repayment assistance program is aimed at different healthcare professionals, such as physicians, nurses and counselors that work in high-need areas. Depending on the specialty, it’s possible to get up to $75,000 toward helping to pay your remaining balance of student loans.

You must commit to at least three years at the site and submit progress reports. Additionally, the site where you work must match 20% of the award in order for you to qualify for reducing your loan amount owed.

2. Rural Physician Loan Repayment Program (RPLRP)

It’s possible to receive up to $20,000 a year, depending on whether you work part-time or full-time as a physician in a rural area of need.

As with the HCWFAP program, you must submit a progress report and serve for a set amount of years. You must also submit a copy of your employment contract in a rural area of high need.

3. Utah scholarships and grants

One way to reduce the impact on student loan borrowers is to look for scholarships and grants. Student aid programs in Utah can help students avoid getting in over their heads with student loan debt. Some of the scholarships and grants available in Utah include:

• Higher Education Success Stipend
• Opportunity Scholarship
• T.H. Bell Education Scholarship
• Veterans Tuition Gap Program

Scholarships and grants don’t have to be repaid as long as the recipient maintains eligibility. With the right approach, scholarships and grants can significantly reduce the cost of higher education.

You could also get a break on tuition and costs by attending school in Idaho. Participating schools in various western states might participate in a tuition exchange program. This can reduce the overall cost of school, even for out-of-state college students in Utah.

Private student loan forgiveness in Utah

In some cases, Utah graduates could get private student loan forgiveness. Utah has a statute of limitations on debt contracts — including private student loans. The statute of limitations is six years.

Depending on the situation, you might be able to have your private student loans successfully discharged. Review your situation and consider consulting with consumer debt or student loan lawyer to see if you have a potential case.

Federal student loan forgiveness programs for Utah residents

Those looking for repayment assistance have different loan forgiveness programs for federal loans. The federal government provides various programs for qualifying graduates who need loan repayment assistance.

Additionally, some are waiting to see if the U.S. Department of Education under the Biden Administration will provide additional student loan relief, beyond extending measures that were enacted during COVID-19.

Here are some of the loan forgiveness programs offered by the federal government:

• Public Service Loan Forgiveness (PSLF): This program forgives your remaining balance after you make 120 qualifying payments while working for an employer in the public or nonprofit sphere. The PSLF program has also been extended through a limited-time waiver.
• Teacher loan forgiveness: After working five years in an area with a shortage, you could receive up to $17,500 in student loan repayment help.
• Perkins Loan cancellation: If you have a Perkins loan, and you go into different professions, such as teaching or law enforcement, you might be eligible for the school to cancel those loans after a set number of years of service.
• National Health Service Corps: There are a number of different programs for health professionals. Depending on the type of service you provide, whether you work full-time or part-time, and how long you work in an area with high need, you could have up to $100,000 in loan cancellation.
• Income-driven repayment plan: For those who enter income-driven repayment, including with consolidation loans, it’s possible to have your remaining balance canceled after 20 or 25 years. Check with your student loan servicer to find out what repayment plan you might be eligible for.

If you have private student loans, you won’t be able to use federal loan forgiveness progams. Instead, you might consider refinancing as a way to reduce your monthly payments and save money with a lower interest rate. Before deciding to refinance, however, it’s important to consider all your options.

You can refinance federal student loans, but once you refinance, you no longer have access to federal government benefits like income-driven repayment. If you have student debt through the Direct Loan program, you may want to first consolidate federal loans, and then compare lenders to refinance your private loans.

Start a Utah student loan forgiveness program today

Any student loan forgiveness program you start will take between two and 25 years to complete, depending on whether it’s a state program or a federal government program. You also need to meet specific requirements to have your loans canceled. It’s best to start planning ahead for forgiveness.

If you want a team of professionals who can help you through this process, consider meeting with one of our consultants. Student Loan Planner can help you navigate your choices so you can create a plan to get rid of your student loan debt faster and avoid student loan forgiveness scams.