What South Carolina Student Loan Forgiveness Covers (and Doesn’t)

Quick Facts

• You won’t get loan forgiveness just for living in South Carolina—you need to work in a qualifying job like teaching or rural healthcare.
• You still qualify for federal forgiveness programs like PSLFPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer. and IDRIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments., no matter where you live or work.
• You can use both state and federal forgiveness, but they’re separate programs with different rules—so you need to track both.

Can South Carolina Help With Your Student Loans?

South Carolina doesn’t offer broad loan forgiveness—but it does have targeted programs for teachers, healthcare workers, and public service professionals. If you’re in one of those roles, you could qualify for serious help.

Not in a qualifying field? Federal programs like PSLF and IDR are still available and have already cleared debt for thousands of South Carolina borrowers.

This guide walks you through both—what the state offers, what the feds offer, and how to tell what applies to you.

State-Based Student Loan Forgiveness Programs in South Carolina

South Carolina offers targeted student loan forgiveness programs for teachers, healthcare workers, and public service professionals. These aren’t blanket forgiveness options—but if you work in a critical field, you may qualify for serious help.

Here are the key programs to know about:

SC Teachers Loan and Career Changers Loan Programs

Eligibility Criteria:

• Residency: Must be a South Carolina resident.
• Education: Enrolled in a teaching program or pursuing alternative certification through PACE.
• Employment: Must teach in a South Carolina public school after graduation.

Service Requirement:

• Forgiveness of 20% or $3,000 per year (whichever is greater) if teaching in either a critical subject or critical geographic area.
• Forgiveness of 33.3% or $5,000 per year if teaching in both.

Loan Cap: Up to $27,500 total.

These are “forgivable loans,” not retroactive forgiveness—so they must be borrowed through the SC Student Loan Corporation.

Public Interest Law Loan Forgiveness Fund (PILLFF)

Offered through the University of South Carolina School of Law, the PILLFF helps graduates working in public interest law manage their student debt. Related: Student Loan Forgiveness for Lawyers

Eligibility Criteria:

• Graduation: Must be a USC School of Law graduate.
• Employment: Work in public interest law.
• Income-Based: Applicants must show financial need.
• Loans Covered: Can be used for federal or private education loans.

Rural Physician Incentive Grant Program

Eligibility Criteria:

• Profession: MDs, DOs, PAs, and APRNs.
• Location: Must commit to work in a Health Professional Shortage Area (HPSA) in South Carolina.
• Benefit: Grant amounts vary and may be used toward student loan repayment.
• Commitment: Service obligations typically begin at 2 years.

Rural Dentist Program

The Rural Dentist Program encourages dentists to practice in underserved rural communities by offering financial incentives that can help offset student loan debt.

Eligibility Criteria:

• Profession: Licensed dentist.
• Location: Must set up or join a practice in a rural area of South Carolina.
• Benefit: Grant amounts vary, often used to reduce student loan balances.
• Service Commitment: Specifics vary by placement and funding cycle.

Federal Student Loan Forgiveness Programs for South Carolina Borrowers

State forgiveness programs can help if you’re in the right job or the right place—but they’re limited, and not everyone qualifies.

The good news? You still have access to federal forgiveness programs that apply no matter where you live. These options are based on your job, income, or loan history—and they’ve already cleared debt for thousands of South Carolina borrowers.

Here’s what you should know:

Public Service Loan Forgiveness (PSLF)

The PSLF your remaining federal student loan balance after 120 qualifying monthly payments while working full-time for a government or nonprofit employer.

Best for: Teachers, nurses, public employees, nonprofit workers, military, and more.

Related: What Jobs Qualify for PSLF

Income-Driven Repayment (IDR) Forgiveness

If you’re on an income-driven repayment plan (like SAVE, PAYEPay As You Earn (PAYE)A federal income-driven repayment plan that caps monthly payments at 10% of discretionary income and forgives remaining debt after 20 years. It is only available to borrowers who took out their first federal loans on or after October 1, 2007., IBRIncome-Based Repayment (IBR)A federal income-driven repayment plan that caps monthly payments at 10% or 15% of discretionary income, depending on when the loans were taken out. Remaining debt is forgiven after 20 or 25 years of qualifying payments.), your remaining balance is forgiven after 20 or 25 years of payments.

Best for: Borrowers with low income compared to their debt, especially those not in public service.

Teacher Loan ForgivenessTeacher Loan ForgivenessA federal program that can forgive up to $17,500 of Direct or FFELP loans for teachers who complete five consecutive years of full-time teaching at a low-income school or educational service agency. (TLF)

The Teacher Loan Forgiveness program forgives up to $17,500 in federal loans after five consecutive years of teaching in a low-income school.

Best for: Teachers not eligible for PSLF, or those who want partial forgiveness sooner.

Closed School DischargeClosed School DischargeA federal loan discharge available to borrowers whose school closed while they were enrolled or shortly after they withdrew, before they could complete their program of study., Borrower Defense, Total and Permanent Disability (TPDTotal and Permanent Disability Discharge (TPD)A federal loan discharge for borrowers who are totally and permanently disabled, as documented by the Department of Veterans Affairs, the Social Security Administration, or a physician's certification.) Discharge, and More

If your school shut down, defrauded you, or you’re permanently disabled, you may qualify for full discharge of your federal loans.

Best for: Borrowers in rare or extreme circumstances.

Can You Combine State and Federal Forgiveness Programs?

Yes—and if you’re eligible for both, you should.

Here’s how it works:

• You can get state loan forgiveness for working in South Carolina (for example, as a teacher in a critical subject area)
• At the same time, you can work toward federal forgiveness like PSLF or IDR
• Just don’t expect the same year of service to count twice for the same debt unless the program allows it

Example: You borrow from South Carolina’s Teacher Loan Program and qualify for forgiveness after 5 years. If you’re also on an income-driven plan or PSLF track, those same 5 years can count toward federal forgiveness as long as you meet the requirements (correct repayment plan, eligible employer, qualifying payments).

The key: Track your service, stay on a qualifying plan, and don’t assume forgiveness happens automatically. You have to apply for each program separately—and meet all the fine print. Related: Is it Too Late to Apply for Student Loan Forgiveness?

Bottom Line

South Carolina has a few strong forgiveness programs—but they’re only for certain careers like teaching, rural healthcare, or public service law.

If you don’t qualify there, your best option is likely through federal programs like PSLF or IDR, which are still wiping out debt for thousands of borrowers in the state.

The hardest part? Knowing what actually applies to you. That’s where we come in.

Book a call with our student loan expert who will review your loans, explain your options, and give you a clear plan—no jargon, no pressure.

Whether you’re eligible for forgiveness now or just trying to avoid a mistake, we’ll make sure you’re on the right track.

Related Readings:

• How Does Student Loan Forgiveness Work
• Student Loan Forgiveness for Healthcare Workers
• Are Federal Student Loans Forgiven After 25 Years