Student Loan Forgiveness in Florida: According to the U.S., Florida ranks as the country’s third most populous state. Next to California and Texas, Census Bureau.
The state has a population of over 21 million inhabitants. Presumably, having such a large population would mean more student loan borrowers, but the amount of Floridians ‘ student loan debt is increasing.
According to credit bureau Experian, the average student loan debt in the Gainesville, Florida area was $40,221 in 2018 and spiked 10.7% to $44,508 in 2019.
If you are in other fields such as law or nursing, you may be able to obtain student loan forgiveness through specific programs in Florida. Read on for more information.
Here are some Programs for Student Loan Forgiveness in Florida
1. Florida Loan Repayment Assistance Program (LRAP) for Lawyers
The Loan Repayment Assistance Program (Florida LRAP) offers student loan forgiveness incentives of up to $5,000 per year, simply for registering as an attorney. This program was created to increase the recruitment and retention of legal assistance and legal services workers in organizations that receive support and funding from the Florida Bar Foundation.
You must remain employed full-time or part-time (at least 50% FTE) for 12 months at a Florida legal aid or legal services organization that receives funding from the Florida Bar Foundation
You may qualify for the Nursing Student Loan Forgiveness Program (NSLFP) if you are a nurse living in Florida. The nurse forgiveness loan program for Florida, launched in 1989, is aimed at nurses working in areas of shortage.
The program offers for up to four years up to $4,000 in student loan forgiveness. To qualify, you have to be:
A licensed practical nurse (LPN)
A registered nurse (RN)
An advanced registered nurse practitioner (ARNP)
Your loans must be from nursing, and your employment needs to be full time at a qualified site. Sites that qualify include:
The Department of Health
State of Florida medical and healthcare facilities
Community health centers that are federally-sponsored
Family practice teaching hospitals
Specialty hospitals for children
Other facilities designated as part of the program
When you receive loan forgiveness under the Florida nurse forgiveness loan program, payment will be made directly to your lender at the end of each 12-month service period.
Other options for student loan forgiveness
While the state of Florida may not have many student loan forgiveness options, there are other ways to receive student loan forgiveness.
Public Service Loan Forgiveness
Do you work for the government or at a non-profit? Through the Public Service Loan Forgiveness (PSLF) initiative, student loan borrowers working in the public sector are responsible for 100% student loan forgiveness. To qualify, a qualifying company must work full time, serve 10 years and make 120 payments.
You may qualify for redemption after 10 years of service and 120 eligible payments by completing an application.
If you feel you can’t afford your student loan payments, it’s a smart idea to go on a revenue-driven repayment plan (IDR). You will pay from 10% and 20% of your discretionary income under the IDR options. This can make more manageable payments. But more than that, depending on the plan, you will be able to get your student loans forgiven after 20 to 25 years.
Though, the one important thing to note is that current tax laws require lenders to pay taxes on their forgiven loans (not PSLF).
Teacher Loan Forgiveness
If you’re a teacher, you could get $5,000 or $17,500 in loan forgiveness, depending on the subject you teach.
If you are a highly qualified math or science teacher at a high school or a highly qualified special education teacher, you can get $17,500 forgiven. Teachers are required to serve at a school or organization with low income and work for five years in full. At the completion of your contract, you will submit the Teacher Loan Forgiveness Application to your loan servicer.
Although there is no special student loan forgiveness plan for teachers in Florida, residents of Florida are eligible for Teacher Loan Forgiveness as it is open to all federal lenders.
Frequently Asked Question
Will I Owe Taxes on My Forgiven Debt?
Anyone who seeks relief from student loans will end up being taxed on the amount forgiven, as the IRS views loan forgiveness as a form of taxable income.
The way this works is that if you seek compensation for $10,000 in student loans, you’ll have to apply the $10,000 to whatever amount of money you’ve actually made for the year, and then pay taxes on your normal income, plus the extra $10,000.
This can lead to major financial problems for individuals who have scraped by making steady, small monthly contributions to their student loans, but who now owe the IRS a huge lump sum payment.
Florida may not be the best place for repayment for student loans. When it comes to redemption, it’s not New York or one of those other, not – so-known cities.
If you move to have more access to student loan forgiveness programs, remember that you typically have to be a state resident, and you may need loans from that state as well in some cases. In this scenario, make sure to do your homework.
But if you plan to stay in the sunshine state, you might be able to take advantage of the federal student loan repayment options available to all federal student loan borrowers.