RALEIGH, N.C.(WNCN) – The White House administration unveiled its new student loan debt forgiveness program. Under the program, students can receive up to $20,000 in debt forgiveness.
Like many good things, there is a catch.
The first is the forgiveness plans only apply to people with federal loans. Any loans from private lenders would not qualify for relief under this program. The White House has not announced plans for relief on private loans.
The second thing borrowers need to know is that this only applies to students who took a loan out before July 1, 2022. This means any future students will not have access to this federal loan forgiveness program.
Under the new program, an individual making more than $125,000 (or $250,000 for married couples) does not qualify. Borrowers should know that yearly or signing bonus count towards their total reported income.
For North Carolina students who do not qualify for the White House loan forgiveness program, there are state or degree specific programs to alleviate debt.
The State Loan Repayment Program targets mental health professionals. Based on the amount of relevant educational loans, hours worked per week, and working at an integrated care site, the program offers educational loan repayment awards up to $50,000. Awards are granted in exchange for a two-year service commitment to rural communities.
The Teacher Loan Forgiveness operates under the College Foundation for North Carolina. It provides financial assistance to qualified students enrolled in an approved education program. Loan recipients must sign a promissory note requiring them to seek loan forgiveness through employment in an approved position. The program forgives one loan for an academic year in exchange for one year of full-time employment.
The NC LEAF Loan Assistance Repayment Program is meant for public interest attorneys with law school debt. The program gives preference to people with fewer than 10 years experience. Applicants must have a debt of $10,000 or more with an income of less than $85,000 for a single person or $150,000 for a couple.