In today’s article, I want to make you aware of specific state-sponsored programs that allow you to pay off student loans when you pursue a career in STEM (science, technology, engineering, and math). For quite some time, public service loan forgiveness programs have been offered by the government, helping people pay off their debt when they hold jobs in fields such as nursing, teaching and law enforcement.
I am happy to report that a few forward-thinking states are using student loan forgiveness programs as a way to encourage and incentivize people to seek tech-minded jobs. That means if you work in a STEM field after college, you may have the opportunity to pay off your loans with contributions from your state. With the ever-rising cost of college and the increasing amount of tuition being borrowed by students, this type of opportunity is a “win-win” for both college grads and the states they work in. Students get to pay off their loans sooner and states attract graduates who stay and work in important STEM jobs.
Here are highlights of four innovative programs along with links to their websites for full details. Note: Each state has specific eligibility requirements and deadlines to submit applications. Check back frequently to learn when the calendar year’s application process begins.
Rhode Island: The state offers student loan reimbursement program, known as the Wavemaker Fellowship, for recent graduates – of any age – working in STEM and certain design fields in the region. The fellowship provides a tax credit to cover student loan debt for RI workers selected based on academic and career accomplishments related to STEM fields. The maximum annual credit is $6,000 for graduate degree holders, $4,000 for bachelor degree holders, and $1,000 for associate degree holders.
West Virginia: The West Virginia Engineering, Science and Technology Scholarship Program provides financial support to students who are pursuing degrees in the STEM fields. To qualify, students must have completed at least two semesters of coursework at an eligible college or university within the state and must have maintained a minimum 3.0 GPA. Students must agree to work full-time within the state in an engineering, science or technology field for one year in exchange for every year of scholarship funding received. Maximum annual awards are $3,000.
North Dakota: The Science, Technology, Engineering, and Mathematics Occupations Student Loan Program provides grants up to $1,500 per year for repayment toward outstanding student loans for qualified applicants trained in STEM fields who are employed in North Dakota.
Maine: The Alfond Leaders student debt reduction program provides student loan repayment assistance to Maine residents who work in a STEM designated occupation in Maine for a Maine-based employer. Applicants must have a higher education degree or certificate and have outstanding student loan debt. Recipients may qualify for up to half of their outstanding student loan balance, not to exceed $60K.
Final thoughts
Taking on student debt can be a complicated and difficult undertaking and I wanted to share a helpful financial literacy resource I came across regarding student loan consolidation. The team at U.S. News & World Report created a guide that breakdowns the different types of student loan consolidation, how they work and what students should know before considering them.
My daughter will be starting the college search process next year and I am eager to help her find a college where she can pursue engineering and/or computer science. And as part of that process, we talk on a regular basis about her interests, what she might want to study in college, and what kind of career she would like to pursue after college. Knowing that student loan forgiveness programs exist for STEM jobs is something I will definitely share with her.
Image: Money Savings by 401K Calculator.org
Editor’s Note: List has been updated in 2020.
