Texas Student Loan Forgiveness And Repayment Programs

Student borrowers in the State of Texas have a number of student loan repayment options that can be availed to eliminate debt and save money on education. Find out more on the eligibility, amount awarded and status of the programs for application.

Updated by Jason Joy Manoj on 18th November 2019

Although Texas is one of the most affordable places to study, there has been an increase in the number of borrowers and an increase in tuition fees, to tackle this the Texas state government provides student borrowers with multiple student loan forgiveness programs.

If you wish to eliminate your debt and you're a resident of Texas state, there are a couple of student loan forgiveness and repayment programs, most of which are provided for those in the healthcare stream and those who are in the education system.

There are many other opportunities for those who do not fall under any of these two categories mentioned. Do keep in mind that some of the programs to be mention have been suspended, but their funding might be reinstated at a later period.

Let's take a look at some of the forgiveness and repayment programs available to student borrowers in the state of Texas.

List of contents

Physician's Education Loan Repayment Program 

The purpose of this program is to encourage qualified physicians to practice in Health Professional Shortage Areas (HPSA’s)  which are designated by the US Department of Health and Human Services and also provide health care services to recipients under the medical assistance program authorized by the Texas Human Resources Code.

Amount - 

Eligible students for this program can get up to a maximum amount of $160,000 over a period of 4 years in order to help out in loan repayment debt which was incurred during the process of becoming a doctor.

Applications are accepted quarterly, and service periods are then renewed on a yearly basis. To be able to receive the full amount of $160,000 you must be certified in any of the following specialties in the time period lasting from either before or during your service period - Internal medicine, Pediatrics, Family Medicine, Psychiatry, Geriatrics, Obstetrics, and Gynecology. The amount awarded based on the service period is - 

  • $25,000 for the first service period or 16% if the total loan balance is less than $160,000.

  • $35,000 for the second service period or 22% if the total loan balance is less than $160,000.

  • $45,000 for the third service period or 28% if the total loan balance is less than $160,000.

  • $55,000 for the fourth service period or 34% if the total loan balance is less than $160,000.

The eligibility requirements for this program -

  • Be a US citizen or permanent resident with a full physician license from the Texas Medical Board with no restrictions

  • if the physician has not already earned and maintained board certification he or she must be eligible to take up the board exam from the specialty board established by the THECB administrative rules during the first, second or third service period

  • the physician must agree to provide 4 years of consecutive service in a federally designed  HPSA, a secure correctional facility operated or under contract with the Texas Juvenile Justice Department or Texas Department of Criminal Justice  

  • the physician must agree to provide direct medical care to Medicaid enrollees

  • the physician shouldn't be obligated to provide medical services as a part of any scholarship agreement or another student loan repayment program

Eligible Loans -

  • Must be evidenced by a promissory note which required the loan proceeds to be used to pay for the cost of attendance for undergraduate, graduate, or medical education

  • Must not have been made during residency or to cover costs incurred after completion of medical school

  • Must not be in default at the time of the physician’s application

  • Must not have an existing service obligation for forgiveness through another program

  • Must not be subject to repayment through another student loan repayment or loan forgiveness program or repayment assistance provided by the physician's employer while the physician is participating in the program

Alternative ways of getting eligible -

Legislation passed by the 83rd Texas Legislature allows primary care physicians who are not practicing in HPSAs or secure correctional facilities to qualify for participation in the PELRP if, during the applicable year, they have provided services to a designated minimum number of Medicaid or Healthy Texas Women Program enrollees.

Applications based on this provision will be considered during the quarter ending August 31, only if funds are available after financial commitments for state fiscal year funds have been made to primary care physicians practicing in HPSAs and secure correctional facilities. The following number of unduplicated clients are required per practice specialty: 

  • Family Medicine: 200

  • Internal Medicine: 200

  • Pediatrics: 200

  • Obstetrics and Gynecology: 200

  • Geriatrics: 25

  • Psychiatry: 150

Program Status - The current quarterly deadline for applications is 31st August 2019.

As per the Texas Higher Education Coordinating Board of Student loans,

Address

1200 E. Anderson Lane

Austin, TX 78752 

P.O. Box 12788, Austin

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


Math and Science Scholars Loan Repayment Program

This program is for scholars who studied in the fields of Math and Science. This award tends to vary according to the point system which in turn is based on the number of Math and Science courses that have been completed by the applicant.

Amount - The amount awarded under this program is $5,000.

The requirements for this program are as follows -

  • You are required to hold a U.S. Citizenship

  • You must have completed a program (undergraduate or graduate) in the fields of Math or Science

  • You must have a degree that you finished with a cumulative GPA of 3.5 or above

  • You must also be certified to teach Science or Math in a public school in the state of Texas

  • You are required to have a contract to teach at a Title I School as a full-time teacher

  • You are not eligible if you're a beneficiary of any other teacher loan forgiveness program

Eligible Loans

  • Must be evidenced by a promissory note for loans to pay for the cost of attendance for undergraduate or graduate education

  • Must not be in a default status at the time of application.

Program status - Applications are no longer available for the year 2018-19 so check for the year 2019-20 in early to mid-2019.

As per the Texas Higher Education Coordinating Board of Student loans

Address -

1200 E. Anderson Lane,

Austin, TX 78752

P.O. Box 12788, Austin,

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


St. David's Foundation Public Health Corps Loan Repayment Program

As of 1st Jan 2018, the Texas Higher Education Coordinating Board is no longer administering this program. 

Amount - Physicians and Dentists are able to apply to avail up to an amount of $30,000 a year for a period of 4 years.

These health practitioners may secure up to $15,000 a year from this student loan forgiveness program in the state of Texas.

The requirements for this program are as follows -

The St. David's foundation provides money to the THECB to disburse to healthcare providers who meet the stipulations mentioned below:

  • You are required to be a U.S. citizen, be a permanent resident, or have some other authorization to work in the U.S

  • You are required to provide service at a participating site for at least 4 years

  • You are required to have and keep a proper license or certification from a recognized governing body

Program status - Currently on Hold. The state organization will no longer be the one administering the program. Grants have been given out for the year 2017, but applications since the year 2018 haven't.

If you have an interest in the program contact Andrew Levack at - ALevack@stdavidsfoundation.org 

Address - 

St. David’s Foundation

1303 San Antonio St.  Suite 500

Austin TX 78701

Phone – 512-879-6614

As per the Texas Higher Education Coordinating Board of Student loans

Address

1200 E. Anderson Lane

Austin, TX 78752 

P.O. Box 12788, Austin

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


Loan Repayment Program for Mental Health Professionals

The purpose of this program is to encourage qualified mental health professionals to practice in a Mental Health Professional Shortage Area (MHPSA) and provide services to recipients under the medical assistance program authorized by the Texas Health and Safety Code.

Amount - the following is the maximum aggregate amounts awarded over a period of five years (based on the types of health professionals):

  • Psychiatrists - up to $160,000

  • Psychologists - up to $80,000

  • Licensed clinical social workers with a doctoral degree - up to $80,000

  • Licensed professional counselors with a doctoral degree - up to $80,000

  • Advanced practice nurses who are board-certified in mental health or psychiatric nursing - Up to $60,000

  • Licensed professional counselors and clinical social workers who are without a doctoral degree - Up to $40,000

If the verified loan balance is less than the maximum aggregate award amount:

  • 10% of the original verified loan balance will be awarded in year one

  • 15% of the original verified loan balance will be awarded in year two

  • 20% of the original verified loan balance will be awarded in year three

  • 25% of the original verified loan balance will be awarded in year four

  • 30% of the original verified loan balance will be awarded in year five

The requirements of this program are as follows -

  • You are required to work in an area that is currently in a shortage for Mental Health Professionals

  • You also need to have no more than about 25% of the total employment hours conducted through telemedicine

  • You need to service those that are enrolled in the Children's Health Insurance Program and Medicaid

  • You are required to agree to provide 5 consecutive years of service

Loans eligible are - 

  • Must be evidenced by a promissory note which required the loan proceeds to be used to pay for the cost of attendance for the undergraduate, graduate, or professional education of the individual applying for repayment assistance

  • Must not have been made during residency or to cover costs incurred after completion of a graduate or professional education

  • Must not be in default at the time of the physician’s application 

  • Must not have an existing service obligation

  • Must not be subject to repayment through another student loan repayment or loan forgiveness program or as a condition of employment

One criterion that would determine your eligibility for this program is your mental health job. Money is awarded based on how many years you have spent in service or the program.

Applicants may get about 10% of the total amount in the first year, which increases in percentage every successive year until they reach the maximum dispensible amount.

Program status - Currently closed for the 2018 fiscal year but could reopen for the year 2019 soon depending on available funding

As per the Texas Higher Education Coordinating Board of Student loans

Address

1200 E. Anderson Lane

Austin, TX 78752 

P.O. Box 12788, Austin

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


Nursing Faculty Loan Repayment Assistance Program

The purpose of this program is to improve access to nursing education and encourage more qualified nurses to serve as faculty at institutions in the state of Texas.

Amount - The amount awarded is $7,000 per year for up to 5 years under this program.

You are required to provide some information about your lender because this program pays for your loans directly without routing the funds through you.

The requirements of this program are as follows -

  • You are required to have completed a master's or a doctoral nursing degree

  • You need to be licensed by the Texas board of nursing

  • You need to be employed as a full-time faculty for a period of 1 year at least in an eligible nursing program

  • You should not be in default on any of your student loans

Loans eligible - 

  • must be evidenced by a promissory note which required the loan proceeds to be used to pay higher-education costs

  • may not have an existing service obligation

  • may not be in default status at the time of application 

Program status -  the applications for the current academic year  2018-2019 are now closed

As per the Texas Higher Education Coordinating Board of Student loans

Address

1200 E. Anderson Lane

Austin, TX 78752 

P.O. Box 12788, Austin

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


Teach for Texas Loan Repayment Assistance Program 

The purpose of this program is to recruit and retain certified classroom teachers in communities and respective fields where there is a shortage in the state of Texas. 

The fields of shortage are updated on the website each year.

Amount -  This program awards a maximum of up to $2,500.

Requirements for this program are as follows - 

  • You are required to teach at any public school in Texas

  • You need to be certified in the field that is identified as having a shortage

  • You need to be willing to teach full time at a school that is identified to have a shortage of teachers

designated shortage fields for this program are - 

  • Bilingual/English as a Second Language (Grades PK-12)

  • Career and Technical Education (including Technology Applications and Computer Science) (Grades 7-12)

  • Mathematics (Grades 7-12)

  • Special Education (Grades PK-12)

Eligible loans are - 

  • Must be evidenced by a promissory note which required the loan proceeds to be used to pay for the cost of attendance for the undergraduate or graduate education of the teacher applying for repayment assistance

  • Must not be in default at the time of the teacher’s application

  • Must not have an existing obligation to provide service for loan forgiveness through another program

Program Status - The application period for the year 2018-2019 is now closed

As per the Texas Higher Education Coordinating Board of Student loans

Address

1200 E. Anderson Lane

Austin, TX 78752 

P.O. Box 12788, Austin

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


Border County Doctoral Faculty education loan repayment program 

The purpose of this program is to recruit and retain people holding a doctoral degree to become or remain as a full-time faculty with instructional duties at the Texas institution for higher education located at the counties that are bordering Mexico. 

Amount

You are eligible to receive up to a set amount of $5,000 every year for up to a period of 10 years from this program if you have a doctoral degree and you also agree to teach full time at any public college or university in Texas county that borders Mexico.

The requirements of this program are as follows -

  • You received your doctoral degree at an accredited institution on or after the date of 9/1/1994

  • You are employed full time as a doctoral faculty member involved with instructional duties

  • You have experience working as a full-time faculty in said capacity for a period of one full academic year

Program status - Currently on hold and not accepting applications until September of 2019 at the earliest. 

As per the Texas Higher Education Coordinating Board of Student loans

Address

1200 E. Anderson Lane

Austin, TX 78752 

P.O. Box 12788, Austin

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


Dental Education Loan Repayment

The purpose of this program is to recruit and retain qualified dentists at Dental Health Professional Shortage Areas (DHPSA’s) of Texas. You can find a list of federally designated DHPSAs in Texas by visiting the Health resources and services administration website.

Amount -You are eligible to receive up to $10,000 every year to help you pay back your student loans.

The requirements of the program are as follows -

  • You are either practicing Pediatric or general dentistry

  • You serve patients regardless of their ability to pay

  • You accept Medicaid assignments as full payment

  • You maintain a license from the Board of Dental Examiners in the state of Texas

  • You have no disciplinary actions pending or completed from the Board of Dental Examiners in Texas

Program status - Currently on hold and not accepting any applications until the Sept of 2019 as of the earliest

As per the Texas Higher Education Coordinating Board of Student loans

Address

1200 E. Anderson Lane

Austin, TX 78752 

P.O. Box 12788, Austin

TX 78711-2788 


Contact: (512) 427-6101 

Student Loans: (800)-242-3062 or (512)-427-6340


Other repayment programs available 

These federal loan programs are common to all the residents in the United States of America and not just to the state of Texas:

  • Federal Teacher Loan Forgiveness and Loan Cancellation programs - Under this program if you teach full time for five consecutive academic years in a low-income school or educational agency then you can qualify for forgiveness for up to $17,500 on your student loans

  • National Health Service Corps Loan Repayment Program - The purpose of this program is to recruit health professionals to work at Health Professional Shortage Areas in return for assisting in the repayment of student loans.

  • Public Service Loan Forgiveness Program - The purpose of this program is to provide loan forgiveness for applicants who are employed by the government or a non-profit organization.  

  • Nurse Corps Loan Repayment Program - This program aims to provide loan repayment assistance for those nurses who practice at health care facilities which have a critical shortage of nurses.

Conclusion

Regardless of where you live, you are eligible to receive federal student loan forgiveness on your federal student loans. The federal government offers programs that are aimed at helping teachers, health care professionals, veterans and public servants pay off their student loans.

Double-check all your provisions but depending on your current situation and the loan forgiveness program, you may not be eligible to get help from either state or federal funding sources. So be careful and cautiously compare programs to figure out which course of action will most likely benefit you the most.