Millions of Americans carry the burden of student loan debt. And with payments set to resume on federal student loans in the very near future after a multiyear pause, a lot of people with educational debt are worried about how they're going to manage those payments.
Some Massachusetts workers, however, may be in luck. That's because the state is awarding more than $140 million in student loan relief. And some workers could soon see their debt burden shrink.
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Healthcare workers are getting a lifeline
Under the MA Repay Program, which provides financial support to healthcare workers, more than 2,900 employees in Massachusetts will be eligible for student loan relief. This includes nursing professionals and social workers.
Those eligible for debt relief are expected to receive between $12,500 and $300,000 per borrower. To be eligible for relief under the MA Repay Program, workers usually must commit to working for a qualifying employer for four or five years.
Other opportunities for student debt relief
Clearly, the MA Repay Program has the potential to be life-changing for those who are eligible to benefit from it. But it's also not the only path to student debt relief.
Certain public service professionals, including teachers, may be eligible for student loan relief as well. And doctors who practice in underserved areas may be entitled to have some of their debt forgiven. The same applies to certain attorneys who work for qualifying legal aid programs.
If you owe money in student loan form, it's a good idea to read up on debt-forgiveness programs and see if there's one that applies to you based on where you live and/or what you do. And remember, some federal student loan repayment programs are set up to automatically forgive a portion of your balance after a period of time, too.
What if you're not eligible for student loan relief?
Ultimately, some borrowers won't be let off the hook as far as their student debt goes. If you're in that boat, you may want to sit down with a financial advisor who can help you manage your loan payments and make it less likely that they'll impede your financial goals. Also, if you borrowed privately for college, it could pay to look into refinancing your student loans if your credit is great and you're eligible for a lower interest rate on them.
Granted, these days, borrowing costs are up on the heels of a string of interest rate hikes implemented by the Federal Reserve to combat inflation. So at this very moment, refinancing student debt may not be as appealing an option. But it could still be worth looking into if you're worried about covering your loan payments.
At this point, U.S. student loans are close to the $1.8 trillion mark. So if you're carrying debt, you're in good company. It's nice that some Massachusetts residents are in line for student debt relief. But even if you live elsewhere, it pays to see if there's a relief program that targets people in your shoes.
