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Student loan borrowers in the Golden State have access to multiple California student loan forgiveness programs. If you’re a California resident and are eligible for one of the state’s programs, it might be a helpful way to reduce the average time it takes to pay back student loans. And while you’re at it, you’ll help a community in need.Here’s a look at 10 student loan forgiveness programs in California you might consider, including what each program offers, what its eligibility requirements are, and how you can apply.
Why Does California Offer Student Loan Forgiveness?
California offers student loan repayment assistance programs to incentivize residents to acquire an education and training as a high-need professional. These programs are also designed to encourage trained professionals to serve in underserved areas of the state.
How Does Student Loan Forgiveness Work in California?
The process for earning loan forgiveness through a California program varies. Typically, you’ll need to work in an eligible profession and have a state license that’s in good standing. You must not have already participated in, or breached a contract for, a student loan forgiveness program in California.To earn student loan forgiveness, you’ll also need to have unpaid student loans and agree to work at a qualifying employer in a designated area of the state. Your weekly service hours and total duration of service must reach the minimum that’s required for the loan forgiveness program, as is generally the case for student loan forgiveness for each state.
10 Student Loan Forgiveness Programs in California
Below is an overview of student loan forgiveness programs for California borrowers, including how the program works, award amounts, and eligibility criteria. Taking advantage of such a program can cut down on how long it takes you to repay your debt compared to the average time to pay back student loans.
1. California State Loan Repayment Program (SLRP)
The California State Loan Repayment Program (SLRP) offers up to $100,000 in student loan forgiveness to eligible participants. It’s the broadest loan forgiveness option in the state, since it’s offered to various types of state-licensed health care providers. You must be a U.S. citizen or U.S. national, and you can’t actively be engaged in another loan forgiveness service contract or have a prior history of breaking a service obligation. Individuals who have federal judgments for unpaid debt or who are not current on child support obligations are ineligible. You'll receive $50,000 in California student loan forgiveness in exchange for two service years working full-time (40 hours per week) at a qualifying site. Recipients can earn additional loan forgiveness awards by extending their service commitment in one-year intervals.How to apply: Applications can be found on the state’s Department of Health Care Access and Information website. The next application cycle opens in July 2023.
2. Bachelor of Science Nursing Loan Repayment Program
Nurses with a bachelor of science in nursing degree and unpaid student debt can receive up to $15,000 in loan forgiveness. To qualify for the state’s Bachelor of Science in Nursing Loan Repayment Program (BSNLRP), you must be licensed to practice in the state and be in good standing with the California Board of Registered Nursing.A 12-month service contract providing direct patient care is required at a minimum of 32 hours per week. Additionally, you can’t have another current or breached service contract on record.How to apply: Applications can be found on the state’s Department of Health Care Access and Information website. The next application cycle opens in May 2023.
3. Allied Healthcare Loan Repayment Program
As a County Medical Services Program (CMSP) Allied Healthcare Loan Repayment Program (AHLRP) participant, you can receive up to $16,000 in student loan forgiveness in California. This program is aimed at health service professionals who play critical roles, such as associate clinical social workers, cardiovascular technologists, chiropractors, medical assistants, occupational therapists, paramedics, and more.To be eligible, you must serve at a facility in one of the 35 CMSP-designated counties for at least 32 hours per week over a 12-month period. During this time, you must provide direct patient care to satisfy your obligation.How to apply: Applications can be found on the state’s Department of Health Care Access and Information website. The next application cycle opens in May 2023.
4. CalHealthCares Loan Repayment Program
Dentists and doctors who are licensed to practice in California can access the CalHealthCares Loan Repayment Program. It offers a sizable loan forgiveness award of up to $300,000 for physicians who are nearing the end of their residency or fellowship, or who have just graduated in the last five years. Participating dentists must have graduated from dental school or residency in the past 15 years. A five-year service obligation serving Medi-Cal patients is required. You must meet caseload requirements for the program.How to apply: Applications can be found on the Physicians for a Healthy California website. The next application cycle opens in January 2023.
5. California Dental Association (CDA) Student Loan Repayment Grant
You can receive student loan forgiveness in California for up to $50,000 per year for five years through the CDA Foundation Student Loan Repayment Grant. You must be a recent dental school or specialty program graduate and eligible to practice in the state. The maximum possible award, if received for all five years, is $250,000. To be eligible, you must offer dental care in an approved underserved California area.How to apply: Visit the CDA website to apply. The next application cycle opens in May 2023.
6. Licensed Mental Health (LMH) Services Provider Education Program
Another California student debt forgiveness program is the LMH Services Provider Education Program. Mental health providers who are licensed in California can receive up to $30,000 in loan forgiveness by completing a two-year service obligation offering direct mental health care. You must commit to serving for 24 months, working at least 32 hours per week providing direct client care at an approved facility in a medically underserved area.How to apply: Applications can be found on the state’s Department of Health Care Access and Information website. The next application cycle in May 2023.
7. County Medical Services Program (CMSP) Loan Repayment Program
The CMSP Loan Repayment Program is a county-sponsored loan forgiveness program for dentists, primary care nurse practitioners, and other medical professionals. It offers $50,000 in student loan repayment in exchange for a two-year service commitment at a CMSP service site.You can choose between a full-time or part-time service for either a $50,000 or $25,000 award, respectively. There is also the possibility of extending for additional years of service in exchange for further loan forgiveness.How to apply: Applications can be found on the state’s Department of Health Care Access and Information website. The application cycle is open until February 2023.
8. Steven M. Thompson Physician Corps Loan Repayment Program (STLRP)
STLRP offers up to $105,000 in student loan forgiveness to California-based physicians and surgeons. You must be licensed in California and in good standing with the state medical board. Additionally, you must be willing to practice full-time under a three-year service contract. A minimum of 32 hours in direct patient care is required while working in a state-designated underserved community or facility for three years. Obstetricians are only required to fulfill a minimum of 21 hours each week of direct patient care.How to apply: Applications can be found on the state’s Department of Health Care Access and Information website. The next application cycle opens in May 2023.
9. Licensed Vocational Nurse Loan Repayment Program (LVNLRP)
California-licensed vocational nurses can earn up to $6,000 in student loan forgiveness for a 12-month service obligation in a medically underserved area. The state’s LVNLRP requires participants to provide a minimum of 32 hours of direct patient care each week.How to apply: Applications can be found on the state’s Department of Health Care Access and Information website. The next application cycle opens in May 2023.
10. Advanced Practice Healthcare Loan Repayment Program (APHLRP)
Specific health care professionals, like California-certified nurse midwives, clinical nurse specialists, dentists, pharmacists, and others can receive up to $25,000 in loan forgiveness. California’s APHLRP requires participants to offer full-time direct patient care and work at a qualified facility for 24 months, at a minimum of 32 hours per week.How to apply: The program is not holding an application cycle for the 2021-22 year. Keep an eye on the Department of Health Care Access and Information website for updates about future cycles.
The Takeaway
If you’re a California-licensed health care professional with substantial education debt, working toward a state loan repayment program is one of the most valuable student loan repayment ideas to consider. Although participating in student loan forgiveness in California requires a service commitment, it can be worth it to get some of your student loan debt forgiven. But just as you’d weigh the advantages and risks of refinancing a student loan before doing so, it’s important to consider your decision carefully. That way, you ensure you’ll be able to follow through with meeting the requirements for a student loan forgiveness program in California.
3 Student Loan Tips
Once the pandemic-related pause on federal student loan payments ends, going back to making payments may be hard on budgets. One solution is to refinance to a lower interest rate, longer loan term, or both, depending on your situation. (The tradeoff is that you’ll be forfeiting federal benefits such as repayment programs.) Find out your student loan refinancing rate.
Paying extra each month on your student loan can reduce the interest you pay and so lower your total loan cost over time. (The law prohibits prepayment penalties on federal or private student loans.)
Depending on their income, qualified borrowers can deduct the interest they pay for student loans, both federal or private, up to $2,500 per year. The deduction phases out for modified adjusted gross incomes of $70,000 to $85,000 for single individuals and $145,000 to $175,000 for people married and filing jointly.
Frequently Asked Questions
How do you qualify for student loan forgiveness in California?
Does California have a student loan forgiveness program?
What student loan forgiveness programs does California offer?
Photo credit: iStock/Xavier Lorenzo
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About the Author
Jennifer Calonia
Jennifer Calonia is a Los Angeles-based finance writer who has covered the gamut, including student loans, credit card rewards, consumer loans, and debt. Her work has been featured in outlets like Bankrate, NerdWallet, Business Insider, Yahoo Finance, and U.S. News.
