Student Loan Forgiveness: University Of Minnesota Eligibility

The University of Minnesota offers a variety of student loan forgiveness programs. These include the Public Service Loan Forgiveness (PSLF) program, which allows students to have the remaining balance of their student loans forgiven after they have made 120 qualifying monthly payments while working full-time for a U.S. federal, state, local, or tribal government or not-for-profit organization. The University of Minnesota also offers loan forgiveness programs specific to the state, such as the Minnesota Rural Physician Loan Forgiveness Program, the Minnesota Urban Physician Loan Forgiveness Program, and the Minnesota Nurse Loan Forgiveness Program. These programs aim to recruit and retain healthcare professionals in needed areas and facilities within the state. Additionally, residents of Minnesota can also qualify for various federal student loan forgiveness programs offered outside of the university.

Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) Program is a federal initiative that encourages individuals to pursue and continue full-time careers in public service. Under PSLF, borrowers may qualify for forgiveness of the remaining balance on their William D. Ford Federal Direct Loan Program loans after making 120 qualifying monthly payments while employed full-time in specific public service roles. The program is managed by the U.S. Department of Education, and interested individuals can find detailed information on the Federal Student Aid website.

To be eligible for PSLF, borrowers must work in public service for a minimum of 10 years, even if not consecutively. Qualifying public service jobs include working for federal, state, local, or tribal governments, as well as non-profit organizations. The specific position held within these sectors is not a factor in determining eligibility. Additionally, AmeriCorps or Peace Corps volunteer service is considered qualifying employment under PSLF.

The University of Minnesota falls under the category of a qualifying employer for PSLF. University employees seeking PSLF can contact their Office of Human Resources for guidance and assistance with the PSLF form. They also offer financial counselling services to help individuals manage their student loan debt.

It is important to note that PSLF only applies to specific types of loans, such as Direct Loans, Federal Direct Loans, and Federal Perkins Loans. Private education loans and defaulted Direct Loans are not eligible for PSLF. Additionally, borrowers must ensure they are on the right payment plan and make timely, minimum payments to qualify for forgiveness.

Minnesota Rural Physician Loan Forgiveness Program

The Minnesota Rural Physician Loan Forgiveness Program is one of many student loan forgiveness programs specific to the State of Minnesota. The program is administered by the Office of Rural Health and Primary Care (ORHPC) and funded by the State of Minnesota.

The program offers up to $25,000 per year, for a maximum period of 4 years, to primary care medical residents in their final year of training, including those in Family Practice, Obstetrics and Gynecology, Pediatrics, Internal Medicine, and Psychiatry.

To be eligible, applicants must meet the following criteria:

• Submit an application to ORHPC during the open application cycle, as a practicing physician or while completing their final year of medical residency training.
• Plan to practice/are practicing in a designated rural area. A designated rural area is defined by Minnesota statute 144.1501 as a statutory and home rule charter city or township outside the seven-county metropolitan area, excluding the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
• Serve a minimum of 3 years and a maximum of 4 years in the designated rural area.
• Practice for at least 30 hours per week, for at least 45 weeks per year.
• Provide direct patient care hours/client-centered services.

The program provides funds for the repayment of Qualified Educational Loans, including government, commercial, and foundation loans for actual costs paid for tuition, reasonable education, and living expenses related to the past graduate or undergraduate education of the physician. Credit card debt, loans from family members, and Parent PLUS loans do not qualify.

It is important to note that loans in current or active default are not eligible for forgiveness under this program, even if they are considered in good standing with the collections agency. Previously defaulted loans that have been rehabilitated and are not currently in default status are eligible.

The selection process for the Minnesota Rural Physician Loan Forgiveness Program is competitive, and selections are based on suitability for practice, as indicated by personal and professional experience and training. Preference is given to applicants who demonstrate diverse cultural competencies and are closest to completing their training.

Minnesota State Loan Repayment Program

The Minnesota State Loan Repayment Program (SLRP) is a funding program that provides money to pay back educational debt for primary care providers who agree to complete a 2-year service obligation in a federally designated Health Professional Shortage Area (HPSA). The program is administered by the Office of Rural Health and Primary Care (ORHPC) of the Minnesota Department of Health.

The purpose of the program is to increase access to primary care and mental health services in geographically isolated, diverse, and economically challenged communities. It aims to increase the number of nursing professionals in high-need rural communities with severe nursing shortages and to increase the number of Black, Indigenous, and people of colour (BIPOC) licensed mental health professionals serving within underserved diverse communities, thereby increasing access to mental health services.

The following types of health professionals may apply:

• Psychiatric Nurse Practitioners
• Clinical or Counseling Psychologists
• Licensed Independent Clinical Social Workers
• Licensed Professional Clinical Counsellors
• Psychiatric Nurse Specialists
• Marriage and Family Therapists

Preference is given to mental health professional applicants who are BIPOC and to nursing applicants working in designated rural areas outside the 7-county Minneapolis/St. Paul metropolitan area, excluding the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud.

To be eligible, applicants must:

• Be U.S. citizens
• Have no service obligations to another agency
• Be licensed and ready to begin full-time clinical practice at the approved site once a contract has been signed
• Hold a valid license to practice in Louisiana
• Have verifiable student loans not in default
• Have no other existing service commitments
• Have no outstanding contractual obligations to provide medical care
• Not have been convicted of any felonies
• Not have been convicted of or disciplined by any state Licensing Board or Agency
• Not have any federal liens
• Not have a current default on any court-ordered child support payments
• Be employed by a designated Healthcare Professional Shortage Area site
• Accept the terms of the agreement

The annual repayment amount is up to $20,000 for primary care providers practicing full-time, and up to $10,000 per year for half-time primary care providers, meeting the same requirements.

Loan forgiveness for total and permanent disability

The University of Minnesota offers student loan forgiveness for its employees through the Public Service Loan Forgiveness (PSLF) program. This program is not exclusive to the University of Minnesota and is available to a wide range of public service jobs. Under PSLF, you may qualify for forgiveness of the remaining balance on your William D. Ford Federal Direct Loan (Direct Loan) Program loans after you have made 120 qualifying payments while working full-time. Qualifying for PSLF depends on the type of loans you have, and a temporary waiver has been put in place to allow more people to be eligible for loan forgiveness.

Now, addressing the specific case of "Loan forgiveness for total and permanent disability", here is some detailed information:

If you are totally and permanently disabled, you may qualify for a Total and Permanent Disability (TPD) discharge of your federal student loans. A TPD discharge means you will no longer be required to repay your loans. There are three ways to demonstrate total and permanent disability:

• Obtain certification from a physician stating that you are unable to work and that this condition has lasted or is expected to last for a continuous period of at least 5 years (60 months).
• Receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits.
• If you are a veteran, submit documentation from the U.S. Department of Veterans Affairs (VA) indicating that you are unemployable due to a service-connected disability.

It is important to note that Nelnet assists the U.S. Department of Education in administering the TPD discharge process, and you can visit their website (www.disabilitydischarge.com) for more information. Additionally, as a result of a change in tax law, loan balances discharged due to TPD between January 1, 2018, and December 31, 2025, are not considered income for federal tax purposes. However, discharged loan amounts may be considered income for state tax purposes, so consulting a tax professional is advisable.

Other Loan Forgiveness Options

Apart from PSLF and TPD discharge, there are other loan forgiveness programs available, such as:

• Loan Forgiveness for Teachers: If you teach full-time for five consecutive years in a low-income elementary or secondary school, or an educational service agency, you may be eligible to have up to $17,5000 of your federal loan cancelled.
• Income-Driven Repayment Plan: Enrolling in an income-driven repayment plan may make you eligible for loan forgiveness after consistent payments for 20 to 25 years, depending on the plan's terms.
• School Closing: If your school closed while you were enrolled or shortly after you withdrew, you may qualify for forgiveness of your federal loans.
• Borrower Defense to Repayment for Federal Loans: If your school committed fraud, misrepresented its services, or violated applicable state law, you may be eligible for loan forgiveness under the Borrower Defense program.

Loan forgiveness for teachers

Minnesota has several loan forgiveness programs for teachers. Here is an overview of the options available:

Minnesota Teacher Shortage Loan Repayment Program

This program aims to encourage teachers, especially those from underrepresented racial or ethnic groups, to teach in Minnesota, in license shortage areas, or in rural school districts. Applicants must hold a teaching license, be employed by a school district to provide classroom instruction in their licensed area, and belong to a racial or ethnic group underrepresented in the state's teacher workforce. Selected applicants receive up to $1,000 in loan repayment assistance, with a limit of $5,000 in total repayment assistance.

Teacher Loan Forgiveness

This program is for teachers who work in schools serving low-income families.

Public Service Loan Forgiveness (PSLF)

The PSLF program is a federal initiative that forgives the remaining balance of an individual's student loans after they have made 120 qualifying monthly payments while working full-time for a U.S. federal, state, local, or tribal government or not-for-profit organization. The University of Minnesota qualifies as a public service employer under this program.

SELF Refi

SELF Refi is a student loan refinancing program that allows Minnesotans to refinance their student debt through the state to obtain a better interest rate.

Frequently asked questions