Student Loan Forgiveness in Vermont: What You Can Get Now

Quick Facts

• You can get student loan forgiveness in Vermont if you work in healthcare, education, trades, child care, or the National Guard.
• 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. still apply, even if you don’t qualify for state help.
• If nothing fits, you can still lower your payments—and possibly get credit toward forgiveness—under the IDR adjustment through July 2025.

Looking for Student Loan Forgiveness in Vermont? Start Here.

Vermont offers targeted student loan relief for people working in healthcare, education, skilled trades, child care, and the National Guard.

These aren’t generic benefits—they’re real repayment and forgivable loan programs built to support essential workers who stay in-state.

Federal options are still in play too. Programs like PSLF and IDR forgivenessIDR ForgivenessThe forgiveness of any remaining federal student loan balance after a borrower has completed 20 or 25 years of qualifying payments under an income-driven repayment plan, depending on the specific plan. can cancel debt even if you don’t qualify for anything Vermont-specific.

This guide cuts through the noise—so you can see what’s real, what applies to you, and what to do next.

Related: State Programs for Student Loan Forgiveness

State-Based Student Loan Forgiveness Programs in Vermont

Vermont doesn’t offer blanket student loan forgiveness—but if you work in healthcare, education, trades, or public service, you could qualify for powerful loan repayment help.

These programs are designed to keep essential workers in Vermont and ease the debt load that comes with those careers.

Here are the key programs to know about:

Vermont Educational Loan Repayment Program for Health Care Professionals

The Vermont Educational Loan Repayment Program helps healthcare workers pay off their student loans in exchange for a service commitment in underserved Vermont communities. Related: Student Loan Forgiveness for Healthcare Workers

Eligibility Criteria:

• Profession: Physicians, nurse practitioners, physician assistants, and dentists.
• Location: Must work at an approved Vermont service site.
• Commitment: Requires a minimum service obligation (typically 12–24 months).

Award Details:

• Repayment amounts vary by profession and commitment length.
• Funds go directly toward educational loans.

Deadline: February 4, 2025 (check with the Vermont AHEC for updated timelines each year).

Vermont Nurse Faculty Forgivable Loan Program

Eligibility Criteria:

• Must be enrolled in a graduate-level nursing program (e.g., MSN, DNP, APRN).
• Must agree to work as full-time faculty at a Vermont nursing school after graduation.

Forgiveness Terms:

• Covers up to full tuition (max $16,280).
• The loan is forgiven once the teaching service requirement is completed.

Note: This is an upfront forgivable loan—not retroactive forgiveness.

Vermont Trades Forgivable Loan Program

Eligibility Criteria:

• Must be enrolled in an approved training or certificate program.
• Fields include building, mechanical, industrial, emergency services, medical trades, and more.

Forgiveness Terms:

• Up to $23,000 in forgivable loans.
• Must work full-time in Vermont for one year per year of funding received.

Priority Deadline: February 12, 2025, but awards continue until funds run out.

Vermont Student Loan Repayment for Early Childhood Educators

The Vermont SLRP for Early Childhood Educators helps reduce debt for early childhood educators who commit to working in Vermont’s child care system. Related: Student Loan Forgiveness for Early Childhood Educators

Eligibility Criteria:

• Must have a degree in early childhood education or a related field.
• Must work full-time in a qualifying program (e.g., private child care center, Head Start, family child care home).

Award Details:

• Up to $4,000 per year in student loan repayment.
• Requires a 12-month service commitment.

Rolling Deadline: Applications accepted year-round until funds are gone.

Vermont National Guard Tuition Benefit Program

Eligibility Criteria:

• Must be an active member of the Vermont National Guard in good standing.
• Must attend an eligible Vermont college, university, or training program.

Award Details:

• Covers full tuition at eligible schools and programs.
• Applies to both degree and non-degree training.

Federal Student Loan Forgiveness Programs Vermont Borrowers Can Still Use

State programs are great, but most borrowers in Vermont will qualify for federal forgiveness options too—especially if you work in public service, education, or have a lower income. Related: How Does Student Loan Forgiveness Work

Here’s a quick rundown of the major ones:

Public Service Loan Forgiveness (PSLF)

If you work full-time for a government agency or nonprofit in Vermont, PSLF could wipe out your remaining federal loan balance after 120 PSLF qualifying payments.

This includes public school teachers, nurses at nonprofit hospitals, state employees, and more. You must be on an income-driven repayment (IDR) plan and submit your PSLF form yearly.

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.

Teachers working full-time for five consecutive years in a low-income school may qualify for up to $17,500 in forgiveness on certain federal loans.

The Teacher Loan Forgiveness program can work alongside PSLF, but you can’t double-count the same years toward both programs.

Income-Driven Repayment (IDR) Forgiveness

Borrowers on IDR plans 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., or 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. can get the rest of their federal loans forgiven after 20 or 25 years of qualifying payments.

If you’ve had loans for a long time or made payments during deferment or forbearance, you may qualify for earlier forgiveness under the IDR account adjustment happening through 2025.

Borrower Defense to RepaymentBorrower Defense to RepaymentA federal process for discharging Direct Loans when the school misled the borrower or engaged in misconduct related to the loan or the educational services it promised.

If you went to a school that misled you or violated the law (especially for-profit colleges), you may be able to get your loans discharged through borrower defense.

Vermont borrowers impacted by closed or deceptive institutions can submit a claim through the Department of Education.

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

If you’re unable to work due to a permanent disability, you may qualify to have your federal loans fully discharged.

This includes borrowers receiving SSDI or VA disability benefits and those certified by a doctor as totally and permanently disabled.

No Forgiveness Programs Fit? Here’s What You Can Still Do.

Most of Vermont’s forgiveness programs are for nurses, doctors, teachers, early educators, or tradespeople. But what if that’s not you?

You’re not out of options. Here’s what to focus on instead:

1. Federal forgiveness isn’t just for teachers or nurses—and you still have options.

• If you work full-time at a government or nonprofit job, you may already qualify for PSLF—even in roles like admin, IT, or maintenance. Related: Which Jobs Qualify for PSLF
• If you’ve had loans for a long time, the IDR account adjustment (through July 1, 2025) could count years you didn’t even know qualified.

2. What about the SAVE PlanSAVE Plan (SAVE)The Saving on a Valuable Education Plan, a federal income-driven repayment plan introduced in 2023 to replace REPAYE. Its implementation has been subject to ongoing litigation, and enrolled borrowers have faced court-ordered forbearance periods.?

The SAVE Plan is temporarily blocked due to a court order, and new enrollment is paused.

But don’t panic—other income-driven plans are still available, including:

• PAYE (Pay As You Earn)
• IBR (Income-Based Repayment)
• ICR (Income-Contingent RepaymentIncome-Contingent Repayment (ICR)The oldest federal income-driven repayment plan, with payments generally set at 20% of discretionary income or a fixed 12-year amount, whichever is lower. It is the only IDR plan available to Parent PLUS borrowers after consolidation.)

These plans cap your monthly payment based on your income and can still lead to forgiveness after 20–25 years. You can apply now at studentaid.gov.

3. You can still position yourself for future relief.

Even if none of the current state programs apply to you, you can still consolidate older loans (like FFEL or Perkins) into a Direct Loan, switch to an IDR plan, and start or continue building credit toward federal forgiveness.

And with the one-time IDR adjustment still active through July 2025, you may already be years closer to loan cancellation than you think.

Bottom Line

You’ve just seen what Vermont has to offer—targeted forgiveness programs for specific careers, plus federal options that can still wipe out debt if you’ve been in repayment for years or work in public service.

Even if you’re not in healthcare or education, you’re not out of options.

The trick is knowing what applies to you, what deadlines you’re up against, and what steps actually move you forward.

That’s where we come in.

Book a call with a student loan expert who gets it.

We’ll help you figure out exactly where you stand with student loan forgiveness in Vermont, walk you through federal and state programs, and make sure you’re not leaving free relief on the table.

Related Readings:

• How to Apply for Student Loan Forgiveness
• Is it Too Late to Apply for Student Loan Forgiveness?
• How Long for PSLF to Process