North Carolina Student Loan Forgiveness Programs

Learn about student loan forgiveness program and its benefits. Explore the different student loan forgiveness programs available in North Carolina. Know what to do if you don't qualify for a student loan forgiveness program.

Updated by Kanishkar P on 22nd July 2020

Are you looking for opportunities that can help you clear your student debt? If yes, then the student loan forgiveness programs can be your savior. It can help you with forgiving the loan amount depending on the program type you choose. It doesn't happen overnight and isn’t an easy process, hence, we’re here to help. The public service loan forgiveness can also be looked into for a qualifying student loan forgiveness program. 

It should be noted that are a number of jobs available to help get your loans forgiven. Having an in-depth understanding of the various student loan forgiveness jobs out there is crucial to see if your job can get your loans forgiven.

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Student loan forgiveness program

There are ways that simplify your student loan repayment, among which student loan forgiveness is one. Student Loan Forgiveness can only work if you’ve taken a federal student loan. This is the special benefit of federal loans. Under special conditions, the federal government can forgive the loan up to some extent, and in some cases, it can forgive the entire amount. There are many kinds of student loan forgiveness programs for people from different backgrounds such as law, education, public service, and more. If you’re not required to pay the loan amounts any longer due to the benefits that you are getting from the government or financial institution or because of the job you do, it is called loan forgiveness. Know more about Student loan forgiveness programs and their benefits.

In this article, we focus more on the Student loan forgiveness programs available in North Carolina.

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North Carolina Student loan forgiveness programs

 The loan forgiveness programs in North Carolina are for those in public service. This includes doctors, nurses, mental health professionals, lawyers, and teachers. But there are specific eligibility criteria to get qualified for a student loan forgiveness program. Important details on a few Student loan forgiveness programs available in North Carolina are given here.

North Carolina State Loan Repayment Program

The North Carolina Office of Rural Health administers the North Carolina State Loan Repayment Program (SLRP). This program helps mental health professionals who offer primary and psychiatric care in rural and underserved areas.

Working under some departments can fetch you the qualification for the student loan forgiveness program. The below-mentioned departments are a few that qualify you for the student loan forgiveness program.   

  • Federal Community Health Centers (also known as Federally Qualified Health Centers, or FQHCs)

  • State-Sponsored Rural Health Centers

  • County Health Departments

  • State Mental Health Hospitals

  • Alcohol and Drug Abuse Treatment Centers

  • Community Mental Health Facilities

The North Carolina SLRP requires two years of service. There’s also a possibility for additional student loan forgiveness. You can only get this if you’re offered an additional one-year contract. The amount awarded is based on the amount of relevant educational loans, hours worked per week and working at an integrated care site. You can receive up to $50,000 of loan forgiveness.

North Carolina Legal Education Assistance Foundation (NC LEAF) is in place to encourage law school graduates to enter and remain in public service. If you are a lawyer working in North Carolina and have earned your accredited degree in the past 10 years, you could be eligible for the NC LEAF loan repayment program. 

Requirements to be considered to get loan forgiveness:

  • Work full time in a North Carolina qualifying public service job

  • Be in good standing with the North Carolina Bar

  • Must first use other sources of loan forgiveness available; this includes Loan Repayment Assistance Programs offered by employers

  • Annual gross income from all sources may not exceed $55,000 for a single person or $95,000 jointly

  • Must have at least $10,000 of student loan debt

  • Must receive monthly bills from a law school loan provider

If you meet these requirements, you can receive up to $400 of monthly help to repay your student loans. The total amount of forgiveness can’t exceed $4800 annually.

Forgiveness Education Loan for Service

The Forgivable Education Loans for Services (FELS) program offers student loan forgiveness for North Carolina resident students pursuing their degree. This loan is administered by the North Carolina State Education Assistance Authority. Your degree can be in any of the following fields:

  • Teaching

  • Health

  • Counseling

  • Medical

  • Nursing

There are restrictions on which area of concentration you choose in these fields. In addition, the program is open only to certain fields for undergraduate and graduate school. FELS recipients must be enrolled for at least six credit hours each semester to qualify for funding for undergraduate or graduate programs. You must also be willing to work in a North Carolina designated critical shortage profession. Along with these, you must have a specified CGPA.

This loan repayment cannot be combined with your loans from other state or federal forgiveness programs.

You can qualify for a maximum of $20,000 for your undergraduate degree; $20,000 for a master’s degree and up to $56,000 for a doctoral degree. Generally, a loan for one academic year is forgiven in return for one year of full-time employment. Loans accrue interest at the rate of 8% per year from the date of the loan disbursement. If you don’t complete the required service after graduation, you must repay the loan in cash.

North Carolina Loan Repayment Program

The North Carolina Office of Rural Health offers another loan forgiveness program — the North Carolina Loan Repayment Program (NC LRP). This program is for qualifying health-care providers. You must be willing to provide primary care services to an eligible facility. This facility must be serving those with high need and designated as a Health Professional Shortage Area (HPSA). You’ll agree to a four-year service commitment at one of such facilities. During this time, you must provide at least 32 hours per week of onsite clinical practice. If you want to work less, you can receive prorated forgiveness for part-time work of at least 20 hours per week.

Physicians and dentists can receive up to $100,000 of loan repayment. Nurse practitioners, nurse-midwives, physician assistants, psychiatric nurse practitioners, and dental hygienists can receive up to $60,000 of loan forgiveness.

Loan Repayment Assistance Programs

The University of North Carlina offers a Loan Repayment Assistance Program(LRAP) for public service practicing lawyers. You can go to the  American Bar Association state LRAP contact page to find all the LRPA programs that are open in North Carolina.

What to do if I don’t qualify for a student loan forgiveness program?

If you are from other states you need to know the top student loan forgiveness program in your state. 

North Carolina has numerous opportunities to help fund your education in school. Most importantly, you should investigate scholarships and grants. It even offers fellowships for teachers who want to return to school and pursue administration.

Private student loans are very helpful when needed. But they cannot be forgiven. Here are the solutions to tackle private student loans.

  1. Refinance your private student loans: You can refinance private student loans while pursuing a forgiveness program with your federal student loans if you have both types. When refinancing your private student loans, compare both interest rates and loan terms of different refinancing lenders. You can approach the best companies to refinance your student loans.

  2. Seek a student loan lawyer: If your private student loans aren’t in good standing, you may be getting calls from debt collectors. In North Carolina, the statute of limitations for a lender to sue you for unpaid debt is three years. However, if you’re going through financial hardship, consider looking into this option with a student loan lawyer.

Concluding Thoughts

Payment becomes an issue if all students cannot find employment directly related to their jobs. The students with better networking abilities find better jobs faster which helps them pay the debts faster. So, for the student to be able to repay the debt, skill is a must. For those who do not have the necessary abilities loan forgiveness programs act as the best options.