The Supreme Court is still considering President Joe Biden's federal student loan forgiveness plan, but for most of the 43 million Americans who still have debt to pay off, other relief options are available at the state level.
The sky-high costs of higher education have meant many former students had to take out loans, and almost every state offers some type of forgiveness program to help residents with their repayments. Only one state—North Dakota—does not have a dedicated program, although it does offer financial assistance to borrowers in certain professions.
As of last year, there were 129 state-level student debt cancellation plans in 49 states and the District of Columbia. Most of the programs are designed to help borrowers in specific professions to help the state attract more workers to the local economy, but some offer amounts based on individual applicants. Others, like Florida's programs for nursing students, offer flat rates.
Read more: Student Loan Forgiveness Updates and FAQs: Who Qualifies and How To Apply
Here are the best and worst states for borrowers seeking relief on their loans.
Best States for Student Loan Forgiveness
Minnesota has the highest number of student loan forgiveness programs, with 15 dedicated programs. Most of those programs are set aside for those in the medical profession, such as primary care providers, dentists, nurses, pharmacists, mental health professionals and other physicians. The state also offers relief to legal aid attorneys through the Loan Repayment Assistance Program of Minnesota.
New York has the second most programs, with 10. The state offers repayment assistance to teachers, young farmers, welfare workers, social workers, nursing educators, physicians, Albany Law School graduates working in public interest law, and district attorneys and assistant district attorneys. New York's "Get on Your Feet" program provides up to 24 months of federal loan relief for state graduates who are participating in a federal income-driven plan.
Texas, Georgia and New Jersey each offer five different programs, while borrowers in Illinois, Iowa, Maine, Oklahoma and Vermont have four programs to choose from.
Worst States for Student Loan Forgiveness
North Dakota is the only state without a dedicated loan forgiveness program. But its federal loan repayment program provides assistance to certain medical professionals who agree to practice for at least two years in areas of the state with staffing shortages.
Other states that have fewer options for borrowers are Alabama, Alaska, Arkansas, Connecticut, Delaware, Hawaii, Idaho, Indiana, Kentucky, Massachusetts, Michigan, Mississippi, Montana, Nebraska, Nevada, New Hampshire, Ohio, South Carolina, South Dakota, Washington, West Virginia, Wisconsin and Wyoming. They all have just one program available.
Higher vs. Lower Student Debt by State
Where you live in the country affects not only the relief programs available but how deep in debt you might be.
The likelihood of having student loan debt as a new graduate ranges from 39 percent in Utah to 73 percent in South Dakota, according to 2020 data from the Institute for College Access and Success. Its analysis also showed that Utah was the only state where the average debt at graduation fell below $20,000.
Students in the District of Columbia pay the highest average on-campus cost of attendance, at $64,354, followed by Massachusetts at $53,853. Students in Idaho pay the lowest total cost, at $19,296.
Federal Options for Student Loan Relief
Aside from Biden's plan, other federal forgiveness options are offered by the Department of Education.
Public sector employees can apply for relief under the Public Service Loan Forgiveness programs, and borrowers who defaulted on their student loans can benefit from the Fresh Start program. The Education Department has also expanded eligibility for existing programs aimed at students who attended colleges that misled them about opportunities after graduation, as well as students who are still in college. The latter can apply for cash grants under the Higher Education Emergency Relief Fund.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Katherine Fung is a Newsweek reporter based in New York City. Her focus is reporting on U.S. and world politics. ... Read more
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