2025 Student Loan Forgiveness Programs by State: Average Debt & Relief Options

Pursuing higher education in the United States often means taking on student loans due to soaring tuition and living expenses. While loan amounts differ significantly depending on your state, every state now offers student loan forgiveness programs designed to help graduates manage or erase their debt.

Despite regional variations, these programs provide critical financial relief for borrowers nationwide.

Important Highlights

• In 2020, 19 states had average student debt exceeding $30,000, with six states surpassing $35,000.
• New Hampshire borrowers carried the highest average debt at nearly $40,000, while Utah graduates owed the least, averaging just over $18,000.
• The District of Columbia recorded the highest on-campus costs at over $64,000 for the 2019–2020 academic year, whereas Idaho had the lowest at under $20,000.
• Minnesota stands out with the most extensive range of state loan forgiveness programs available.

Understanding Student Loan Debt and Forgiveness

Student loan debt accumulates when students borrow federal or private loans to fund tuition, textbooks, supplies, and living expenses. As of March 2024, American student loan debt totals an astonishing $1.75 trillion—surpassing the GDP of most countries worldwide.

Even with scholarships or parental support, loans remain a necessity for many, especially as education costs continue to rise.

Over 43 million Americans carry student debt, and repayment challenges can lead to delinquency or default—negatively impacting credit scores and financial futures.

Fortunately, federal and state-level forgiveness programs exist to alleviate these burdens, rewarding graduates who meet specific requirements through partial or full debt cancellation.

Below, we analyze the 2020 state-by-state student loan landscape and forgiveness initiatives, drawing on the latest data from the Institute for College Access & Success.

Student Loan Debt Statistics by State

Debt averages vary widely, with states in the Northeast generally reporting higher balances and Western states showing lower figures.

New Hampshire’s borrowers faced the highest average debt at $39,950, while Utah had the lowest at $18,350—the only state below $20,000.

Additionally, South Dakota had the highest percentage (73%) of graduates carrying student loan debt, contrasting with Utah’s lowest rate of 39%.

Private loan use also varies, with North Dakota reporting a 27% private borrowing rate, and Nevada the lowest nonfederal debt percentage at just 3%.

Cost of attendance also influences debt size. The District of Columbia had the steepest average on-campus costs ($64,354), while Idaho’s costs were the most affordable ($19,296).

Subtracting average attendance costs from average debt reveals which states provide students with more aid beyond tuition, helping cover living expenses or loan repayment. North Dakota borrowers, for example, on average have $12,592 remaining after tuition costs, whereas D.C. students face a $27,194 shortfall.

State-Specific Student Loan Forgiveness Programs in 2024

Every state and the District of Columbia now offers at least one student loan forgiveness program, totaling over 140 state-level plans nationwide.

Minnesota leads with the most diverse forgiveness opportunities, many tailored to attract professionals in high-demand sectors like healthcare, education, and law.

State programs vary in three main ways:

• Loan Forgiveness Amounts: Forgiveness ranges from a few thousand dollars annually (e.g., Florida’s Nursing Student Loan Forgiveness Program offers up to $4,000 per year) to tens of thousands over time.
• Eligibility Criteria: Applicants usually must be U.S. citizens or state residents, hold qualifying educational debt, and work in specific professions. For instance, Massachusetts’ Loan Repayment Program supports a broad range of healthcare roles, whereas Missouri’s programs focus exclusively on nursing.
• Application Processes: Unlike federal programs, state application procedures differ widely. Some states provide online portals, others require direct contact via email, and documentation needs vary.

Prospective students and graduates should explore both federal and state forgiveness options, especially if planning careers in in-demand fields. Programs like Iowa’s Health Professional Recruitment Program specifically target communities needing more healthcare providers.

While loan forgiveness should not be the sole factor in choosing an academic path, researching available state programs can provide valuable financial safety nets.

Examples of State Forgiveness Programs

• Alabama: Alabama Math and Science Teacher Education Program (AMSTEP)
• California: California State Loan Repayment Program (SLRP), CDA Foundation Student Loan Repayment Grant
• Florida: Nursing Student Loan Forgiveness Program (NSLFP), Florida Bar Foundation Loan Repayment Assistance Program (LRAP)
• Minnesota: Multiple programs including Minnesota Dentist Loan Forgiveness, Rural Mental Health Professional Loan Forgiveness, and Urban Physician Loan Forgiveness
• New York: New York State Teacher Loan Forgiveness, Albany Law School Loan Repayment Assistance Program (LRAP), NYS Licensed Social Worker Loan Forgiveness
• Texas: [Program details pending]

For a full list of programs by state, it is recommended to visit official state education or loan assistance websites.

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