10 Cities and States That Help Pay Off Your Student Loans

Student loan debt is a huge problem in the United States. This is because college is seen as a way to improve your chances of finding a good job, which is a way to make more money, which is a way to pay off your debt. But there are many rewards for going to college, and many ways that you can reduce your debt, without going to college.

By now you’ve probably heard that student loan debt is among the highest in the U.S., and it’s expected to rise even further over the next decade. The personal finance website Nerd Wallet created a ranking of U.S. cities and states when it comes to student loan debt, and you may be surprised by some of the results.

Student loans are a common type of debt, whether you are a student going to college or you are a recent graduate searching for a job. Since most student loans come with a variable interest rate, you don’t want to pay more than you have to. Unlike other forms of debt, student loans have few options for repayment. Not all student loans are funded by the government, and it is important to compare your options and find the one that works best for you.. Read more about states that will pay off student loans and let us know what you think.About 43 million Americans currently have federal student loan debt, and many of them also have private loans. Not surprisingly, student loan repayment states and cities across the country are resourceful in encouraging borrowers to move to their areas.

Many student loan assistance programs are designed for specific occupations in low-income areas. For example, many states offer loan repayment programs for medical or dental professions.

But innovative student loan assistance programs are becoming more popular as cities and states try to attract more young professionals.

In this list, we’ve included unique states or cities that repay student loans, as well as programs in professions that offer the most loan benefits.

1. California

Help with student loans : Up to $110,000 (price varies based on stakes).

The California State Loan Repayment Program (SLRP) is designed for physicians, physician assistants, nurse practitioners, nurse midwives, pharmacists, dentists, dental hygienists and those working in mental or behavioral health care.

Applicants must be licensed in California and willing to work at a SLRP-approved practice site in a Health Professional Shortage Area (HPSA).

A commitment of initially two years is required for a permanent position. The maximum premiums are as follows:

  • First commitment: $50,000
  • Expansion (first year) : $20,000
  • Renewal (second year) : $20,000
  • Renewal (third year) : $10,000
  • Renewal (fourth year) : $10,000

However, with a four-year contract, part-time options are also available.

2. Hamilton, Ohio

Help with student loans : Up to $10,000 (within 30 months)

The Talent Attraction Program Scholarship is offered by the Hamilton Community Foundation to recent graduates who plan to live in certain areas of Hamilton, Ohio.

Preference will be given to those who have completed a STEAM program (science, technology, engineering, art or math) within the past seven years. Persons residing in the City of Hamilton are specifically excluded.

This reverse scholarship is paid in monthly installments of $300 over 30 months to a total of $10,000. However, the recipient must remain employed in the City of Hamilton or Butler County to receive the full amount of the loan.

3. Illinois

Help with student loans : Up to $40,000 (depending on the purchase price of the home).

The Illinois Housing Development Authority’s SmartBuy program offers up to $40,000 in student loan assistance to encourage home buying in the state. The actual amount of the student loan is based on 15% of the purchase price.

In addition, down payment assistance is available in the form of a $5,000 second mortgage at 0% with no monthly payments until the first mortgage is paid off in full.

This innovative program was launched in December 2020. But the $25 million in funding has already been used up, so the program is closed to new buyers. However, we have added this popular program to the list in case funding is extended.

4. Kansas

Help with student loans : Up to $15,000 (over five years).

The Kansas Rural Opportunity Program includes 95 designated counties, some of which offer up to $15,000 in student loan repayment assistance if you move there.

The following counties are currently participating in the 2021 program: Decatur, Norton, Phillips, Jewell, Republic, Nemaha, Doniphan, Rooks, Wallace, Gove, Lincoln, Greeley, Rush, Rice, Marion, Franklin, Edwards, Haskell, Kiowa, Clark, Harper, Cowley and Labette.

Borrowers with a university, undergraduate, graduate or professional degree and an active student loan balance are eligible.

5. Maryland

Help with student loans : Up to $30,000 (depending on the purchase price of the home).

Maryland SmartBuy 3.0 is a proven student loan repayment program that has had ongoing funding for several years. It allows for the repayment of student loans up to 15 percent of the purchase price of a home in Maryland, with a maximum amount of $30,000. The program also offers $5,000 in down payment assistance.

However, this program has strict admission requirements, including a credit score of at least 720. Additionally, it is an all-or-nothing loan agreement that requires at least one borrower’s balance to be paid in full at closing. So if you have more than $30,000 in outstanding student debt, you must pay it off to an acceptable amount.

6. Michigan

Help with student loans : Up to $200,000 (amount varies depending on service commitment).

The Michigan State Loan Repayment Program (MSLRP) provides up to $200,000 in tax-exempt funds over an eight-year period to eligible primary care, dental and mental health providers.

To be eligible, the individual must have worked full time at the HPSA or a non-profit clinic in Michigan for at least two years.

The MSLRP does not set a premium for each year of service, but calculates it based on total outstanding student debt. This amount is divided by eight years (or the number of remaining years of acquisition) and multiplied by two.

For example, if you are a new applicant with $150,000 in debt, your first two-year contract will include $37,500 in student loan assistance.

Each time an applicant receives a new policy, premium amounts are recalculated.

7. Niagara Falls, New York

Help with student loans : Up to $6,984 (over two years)

The City of Niagara Falls offers a student loan repayment program for graduates who wish to live in a particular downtown neighborhood. Grantees receive $3,492 per year with a two-year agreement.

Admission requirements include an application to the city within 24 months of completing a two-year associate technical degree or within 36 months of completing a bachelor’s degree or higher.

8. North Dakota

Help with student loans : Up to $80,000 (price varies depending on service commitment).

Newly graduated veterinarians in North Dakota can participate in the state’s veterinary relief program. The program was designed to attract new food veterans to low-income areas of the state. However, only three veterans are selected each year.

Veterans who qualify will receive up to $80,000 for a four-year contract. The maximum premiums are as follows:

  • Year 1: $15,000
  • Year 2: $15,000
  • Third year: $25,000
  • Fourth year: $25,000

However, you can get service commitments of two and three years.

9. St. John’s County St. Clair, Michigan

Help with student loans : Up to $15,000 (paid quarterly)

The Community Foundation of St. John’s St. Clair County offers the Homecoming Award to attract and keep graduates in the region.

Requirements for applicants include having completed a related STEAM course within the past 10 years and living and working in St. Louis County. Clearly. Anyone currently living in the District or about to move to the District is not eligible for the program.

This reverse scholarship is paid quarterly and there is no mandatory contract period. However, funding for the scholarship will lapse if the recipient moves out of the district.

10. Texas

Help with student loans : Up to $2,500 per year for five years

The Teach for Texas loan repayment program is designed to attract and retain teachers in disadvantaged areas and districts in Texas. Eligible teachers will receive up to $2,500 per year for five years. An updated application must be submitted for each award year.

In 2020-2021, the deficit areas include:

  • Bilingual/English as a Second Language (K-12)
  • Vocational and technical education (K-12)
  • Mathematics (grades 7-12)
  • Special education (K-12)

Teachers in other professions may be eligible if they work in a community where there is a shortage.

Other possibilities to waive study loans

These cities and states are not the only ones paying off their student loans. As the student debt crisis worsens, more and more municipalities are expected to realize how useful these programs can be in attracting college graduates as new residents.

In addition, federal student loans have access to a number of loan forgiveness programs, including public service forgiveness and income-based forgiveness.

Don’t know what assistance and waiver programs are available to you? Contact our team of student debt experts for a customized repayment plan that maximizes all discharge and repayment strategies.

Frequently Asked Questions

What states pay off student loans?

The United States government has a lot of different programs to help you pay for college, and many of them work together. There’s the Federal Direct Loan Program, the Federal Family Education Loans Program, and the William D. Ford Federal Direct Loan Program, which are all government-funded, and help you with the private student loans that you may have taken out to pay for tuition.

The average student loan debt in the U.S. is at an all-time high, and it’s expected to rise even more as a result of the 2008-09 financial crisis. In fact, the national average is now $25,000, and that number is expected to reach $30,000 by 2017. It’s not just recent graduates who are feeling the burden, either.

According to a recent report from the Department of Education, more than half of all student borrowers received money from other sources to cover their costs, with an average of about $1,200 per year. But even if you haven’t borrowed from the federal government, or if you can wrangle your loan payments down to less than $200 per month, there

Who can help me pay off my student loans?

If you have student loans, you know that the interest rates for student loans are extremely high. If you want to pay off your student loans and don’t know who to turn to, you should contact one of the ten cities and states that help pay off your student loans. If you don’t have the money to pay off your student loans, you have options.

The federal government, states, and some cities offer student loan repayment assistance programs. A few states and cities offer disability benefits, and some offer loans for low-income students. Here’s a look at how some states and cities can help you with your student loans.

Are there any programs to help pay student loans?

The student loan crisis is a very serious problem for a lot of people, but that doesn’t mean it’s a problem that should keep you awake at night. It’s easy to start thinking about student loans as a total burden, but there are actually quite a few ways to make them easier to pay back and stop them from piling up.

The average student loan debt is over $28,000. That’s because there are no government programs to help pay off student loans. In fact, the student loan debt is the second-highest debt for most Americans behind their home mortgages.


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