Student loan forgiveness programs
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Student loan forgiveness programs in New York
How recent college grads, teachers and more can reduce their debt.
New Yorkers have the 13th highest average student debt load in the nation, clocking in at $30,931. That can be a lot to handle, whether you’re paying New York City rent or living upstate with a mortgage and car loan. But you might be able to reduce that debt by applying to one of New York state’s student loan forgiveness programs.
NYS Get On Your Feet Loan Forgiveness Incentive Program
- Amount: Up to 24 months of student loan repayments
- Qualifying loans: Direct Subsidized, Direct Unsubsidized, Direct Graduate PLUS Loans, Direct and FFEL Consolidation Loans (except Parent PLUS)
The state of New York will make two years of income-based repayments on federal loans for recent graduates who went to high school, college and started their careers in New York state (NYS).
You must be on a specific income-based repayment plan, live in New York and make no more than $50,000 a year to qualify — in addition to meeting other requirements.
Eligibility requirements
You need to meet the following criteria to qualify for the Get On Your Feet program:
- Legal New York resident
- Live in New York for at least 12 consecutive months
- High school graduate with a diploma issued by NYS
- Undergraduate degree from an NYS school issued no earlier than December 2014
- Enrolled in the Income-Based Repayment (IBR) plan at 10% of your discretionary income, Pay as You Earn (PAYE) plan or Revised Pay as You Earn (REPAYE) plan
- Work primarily in New York, if employed
- Annual gross income of less than $50,000
- Current on all federal and NYS student loans and awards
- US citizen or eligible noncitizen
NYS Teacher Loan Forgiveness Program
- Amount: Up to $5,000 per year for four years
- Qualifying loans: All federal loans (except Parent PLUS), NYS loans and private student loans
The purpose of this forgiveness program is to provide an incentive for school teachers to work at understaffed New York schools. Certified New York teachers can qualify for four yearly installments of $5,000 in forgiveness as long as they teach in a subject or school district that has a teacher shortage.
Eligibility requirements
You need to meet the following criteria to qualify for the NYS Teacher Loan Forgiveness Program:
- Certified NYS teacher
- Full-time employee at an NYS elementary, middle or high school
- Teach an understaffed subject or in an understaffed district currently and for the past year.
- NYS resident
- Live in NYS for the past 12 months
- US citizen or eligible noncitizen
NYS Child Welfare Worker Loan Forgiveness Incentive Program
- Amount: Up to $10,000 a year for five years
- Qualifying loans: All federal loans (except Parent PLUS), NYS loans and private student loans used to pay for education in New York
Recent New York graduates that plan on making a career of working for child welfare services might want to consider this program. The state will forgive up to $50,000 of almost all student loans, as long as you pledge to work in child welfare during that time.
Eligibility requirements
You need to meet the following criteria to qualify for the NYS Child Welfare Worker Loan Forgiveness Program:
- Pledge to work full time as a direct care service provider at an Office of Child and Family Services-licensed nonprofit child welfare agency in NYS for five years
- Graduated from an undergraduate or graduate program in NYS within the past two years
- New York resident
- Live in New York for the past 12 months
- Current on all federal and state loans
- US citizen or eligible noncitizen
NYS Licensed Social Worker Loan Forgiveness (LSWLF) Program
- Amount: $6,500 per year for up to four years
- Qualifying loans: Federal student loans (except Parent PLUS), NYS loans and private student loans
The goal of LSWLF is to bring social workers to underserved areas. Anyone who’s worked as a social worker in an eligible county for at least a year can apply to this program. You must continue working in a qualified area to remain eligible for additional forgiveness.
Eligibility requirements
To qualify for LSWLF, you need to meet the following criteria:
- Social worker with an NYS license
- Work for at least one year as a full-time licensed social worker for at least 35 hours per week in a critical human service area
- New York resident
- Live in New York for the past 12 months
- Current on all federal and NYS student loans
NYS District Attorney and Indigent Legal Services Attorney Loan Forgiveness (DALF) Program
- Amount: $3,400 per year for up to six years
- Qualifying loans: All student loans used to pay for an undergraduate and law degree
Experienced district attorneys, assistant district attorneys or indigent legal services attorneys throughout New York State can qualify for this program. In addition to forgiveness on your current balance, lawyers can also apply to get reimbursed for past interest payments.
However, you might not want to use this program in combination with other types of forgiveness or repayment assistance. That’s because NYS deducts any other forgiveness amounts from the amount you’re eligible to receive.
Eligibility requirements
To qualify for this program, you must meet the following criteria:
- Work full time as a district attorney, assistant district attorney or indigent legal services attorney in NYS for between four and nine years
- NYS resident
- US citizen or eligible noncitizen
- Current on all federal and NYS student loans
NYS Nursing Faculty Loan Forgiveness (NFLF) Incentive Program
- Amount: $8,000 per year for up to five years
- Qualifying loans: Any loan used to fund a nursing degree, excluding Parent PLUS and Perkins Loans
The aim of NFLF is to provide a financial incentive for nurses to go into teaching in New York. It isn’t just for anyone — you need to have at least a master’s degree as well as experience teaching and working as a nurse.
Eligibility requirements
To qualify for this type of forgiveness, you must meet the following criteria:
- Master’s or doctoral degree in nursing
- Licensed to practice in NYS
- Experience working as a clinical nurse
- Work as a faculty or adjunct clinical faculty member of an NYS nursing school, giving classroom or clinical instruction for at least 12 credits during an academic year from July 1 to June 30
- Legal NYS resident
- Live in NYS for the past 12 months
- US citizen or eligible noncitizen
- Current on all federal and NYS student loans
NYS Young Farmers Loan Forgiveness Incentive Program
- Amount: $10,000 per year for up to five years
- Qualifying loans: All student loans, excluding Parent PLUS Loans
Recent college graduates thinking of going into farming might want to consider this incentive program. You don’t need to have a degree in agriculture to qualify, but you have to sign a contract agreeing to work as a farmer for the next five years.
It’s a competitive program — only 10 farmers qualify each year.
Eligibility requirements
To qualify for this type of forgiveness, you need to meet the following criteria:
- Operate an NYS farm full time
- Sign a contract pledging to continuing to operate that farm for the next five years
- Apply within two years of graduating from college
- Undergraduate degree from a school in NYS
- New York resident
- Live in New York for the past 12 months
- US citizen or eligible noncitizen.
- Current on all federal and NYS student loans
What if I don’t qualify for any of New York’s forgiveness programs?
NYS forgiveness is only one way to reduce your student debt. If you can’t qualify for any of those programs, you might want to consider one of the following options:
- Refinancing with a private lender. Trading in your student debt for a loan with more favorable rates and terms might help you save in the short and long term, adjust your repayment plan and switch servicers.
- Consolidating federal loans. Taking out a Direct Consolidation Loan might make some of your loans eligible for certain forgiveness programs if they don’t already qualify.
- Federal student loan forgiveness. The federal government offers full and partial forgiveness to public servants, nonprofit workers, members of the military, teachers and more.
I defaulted on my student loans. What’s the statute of limitations on debt in New York?
The New York debt collection statute of limitations is six years after the day your loan was considered to go into default. This means a lender can’t sue you for debt collection after six years, though you’ll still technically owe the money.
However, this only applies to private student loans — there’s no statute of limitations for government-issued student debt.
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Bottom line
Only a handful of career paths can make you eligible for an NYS student loan forgiveness program — unless you graduated from college in the past two years. But if you can qualify, some of these programs might offer enough to pay off your entire student loan balance.
Learn more about how it all works by checking out our guide to student loans.
Compare student loan forgiveness programs in other states
Frequently asked questions
How does NYS forgiveness affect my taxes?
You might have to pay income tax on any forgiven portion of your loan. Anyone who receives NYS forgiveness will receive an IRS 1099 Form, which you’re required to file along with your return.
How does NYS issue forgiveness?
It depends on your program. With some, NYS issues forgiveness directly to your loan servicer. With others, NYS gives you the funds, which you can then use to pay off your student loans.
Can I apply for NYS forgiveness if my federal loans are in default?
No — and you also can’t qualify if you’re late on a loan payment. You must be up to date with all federal and state-issued student loans to qualify for NYS forgiveness.
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