Are you loving life in the Hoosier state, with its sugar cream pie and epic IU-Purdue rivalry, but being dragged down by your student loans? There could be help for you.
The Institute for College Access and Success reported that 59 percent of Indiana students in the Class of 2016 graduated with student loan debt. And the average debt load was more than $29,000 — maybe not as much as some of the most expensive Northeastern states, but definitely above the national average.
Luckily, its residents working in the fields of law or mental health could see a reprieve, and there are also possibilities for those in other occupations. Here’s how to get student loan forgiveness in Indiana.
Getting student loan forgiveness in Indiana
It’s true that not all Indiana residents will be eligible for student loan forgiveness from the state. However, if your line of work isn’t on this list, you might be able to turn to federal student loan forgiveness programs for help.
With that said, here’s what’s available from the state.
Loan Repayment Assistance Program for Mental Health and Addiction Professionals
The Family and Social Services Administration has a program to grow the state’s mental health and addiction workforce. This program offers student loan forgiveness in Indiana to a variety of professionals in the field, including counselors, nurses, psychiatrists, and more.
Those eligible can receive repayment assistance of up to 25 percent of their total student loan debt. However, the amount cannot exceed $25,000 a year, and the program doesn’t extend beyond four years. The only professional this rule doesn’t apply to is an addiction psychiatrist, who can earn repayment assistance for five years.
Eligible recipients must also be licensed and residents of Indiana to qualify. They must have graduated no more than three years ago and have new employment or a promotion as a result of their recent education. Finally, they must be in good standing on their loans and be employed full-time.
As of right now, funding has not yet been secured for 2018. However, interested Indiana residents can visit this website to check for updates.
The Richard M. Givan LRAP
Lawyers living anywhere in the U.S. might hesitate to take work in legal aid offices, since the salary might not cover their living expenses and student loan payments. But Indiana lawyers facing this situation can get help.
The Richard M. Givan LRAP offers student loan forgiveness to lawyers working in eligible legal aid organizations. This program exists to help those who wouldn’t be able to afford to take on the work otherwise, since student loan repayment takes up a large chunk of their income.
Legal aid lawyers can be eligible as long as their income doesn’t exceed $70,000. They must also be licensed to practice in Indiana and actively participate as a member of the Indiana Bar Association.
The maximum annual award is $5,000, though you can apply every year as long as you have student debt remaining. Funding for the program is based on the performance of the Indiana Bar Foundation’s endowment. The total amount for 2018 is estimated to be $18,000.
Law school-sponsored student loan assistance
The Richard M. Givan LRAP isn’t the only way lawyers can receive student loan repayment assistance. They can also turn to their alma mater to see if there are programs to help.
For example, Indiana University’s Robert H. McKinney School of Law has its own student loan repayment assistance program. Alumni can qualify six months after they graduate if they have a household income of less than $60,000 per year and engage in public interest work. This work can be for nonprofits or government agencies.
McKinney alumni can earn up to half of their annual student loan payment amount, for a maximum of $5,000. The funds for this program vary from year to year.
Don’t forget about federal programs
All hope is not lost if your professional field doesn’t qualify you for student loan forgiveness in Indiana. The next step is to look for federal student loan forgiveness.
Teachers can qualify for forgiveness of their student debt through Teacher Loan Forgiveness. This program offers up to $17,500 for teachers who’ve taught full-time for five years in a row at eligible schools.
And professionals of all kinds can earn student loan forgiveness through the Public Service Loan Forgiveness Program. This program wipes away the entire balance of eligible recipients’ student loan debt after 120 monthly payments. Qualifying employers include 501(c)(3) registered nonprofits (as well as some other nonprofits) and federal, state, local, and tribal government organizations.
Statute of limitations on debt in Indiana
Besides student loan forgiveness, is there ever a time when Indiana residents can be released from their student loan debt? Discharging student loans in bankruptcy is difficult, though not impossible.
But there’s also the statute of limitations on debt to consider. (For private student loans, that is — federal student loans are exempt from the statute of limitations on debt.)
Collections on private student loans become unenforceable once the loans have been in default for a specified number of years: Loans taken out prior to September 1, 1982, are time-barred after they’ve gone unpaid for 10 years, while loans taken out anytime after that are time-barred after six years.
Get that student loan forgiveness, Indiana residents
Student loan debt can be challenging for many of those who borrow. But there are ways to get help, thanks to student loan forgiveness programs. And if you’re not happy with the offerings you see, you can exercise your voice with your local lawmakers.
Meanwhile, you can look into some of the above student loan forgiveness options, while also using other strategies to take your student loan debt into your own hands and pay it off once and for all.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.46% – 6.97%1||Undergrad & Graduate|
|2.57% – 8.44%4||Undergrad & Graduate|
|3.05% – 6.47%2||Undergrad & Graduate|
|2.50% – 7.24%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|