Student Loan Forgiveness in Vermont: What You Can Get Now

• 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 PSLF and IDR 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.

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 forgiveness 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

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

The Vermont Nurse Faculty Forgivable Loan Program helps nursing professionals pursue advanced degrees so they can teach in Vermont’s nursing schools.

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

For Vermonters training in skilled trades, the Trades Forgivable Loan Program offers forgivable loans to cover the cost of education or certification.

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

The Vermont National Guard Tuition Benefit Program offers tuition assistance to Vermont National Guard members pursuing college or professional training in the state.

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.

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 Forgiveness

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, PAYE, or IBR 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 Repayment

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 (TPD) 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.

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.

Programs like Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) forgiveness are based on where you work or how long you’ve had your loans, not your specific profession.

• 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 Plan?

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 Repayment)

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.

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