Many Hawaii residents face student loan debt. Monthly payments can limit your money choices. Learning about forgiveness and repayment programs can help reduce this stress. This guide covers federal, state and job-specific student loan help for Hawaii residents.
Key Points
- Hawaii residents can use various federal and state student loan forgiveness programs
- Many programs help healthcare workers, especially those in areas that need more health staff
- Your loan type, job, service promises and income affect if you can join these programs
- Federal options include Public Service Loan Forgiveness, Income-Driven Repayment plans and special programs
- Hawaii offers specific programs like HELP and the Hawaii State Loan Repayment Program
- Recent court decisions have changed student loan relief options
- While bankruptcy rarely removes student loans, forgiveness programs can still help
How Does Hawaii’s Loan Repayment Program Help Healthcare Workers?
The Hawaii State Loan Repayment Program (HSLRP) helps healthcare workers pay off student loans when they work in areas needing more medical providers. This program pays off educational loans for primary care and behavioral health providers at non-profit sites in shortage areas. To qualify, you need an active license and must commit to two years of service in Hawaii.
State-Level Student Loan Forgiveness & Repayment Programs
State Programs in Hawaii
Healthcare Education Loan Repayment Program (HELP)
The Healthcare Education Loan Repayment Program (HELP) is funded by the state legislature. It pays back educational loan debt for health professionals licensed or certified to practice in Hawai’i. Governor Josh Green, through the office of the governor, has backed this wide-reaching loan repayment program to fix healthcare worker shortages.
To get loan repayment through HELP, you must:
- Be healthcare professionals licensed or certified in Hawai’i
- Provide care to patients in Hawai’i
- Accept public insurance for at least 30% of patient care bills
- Commit to at least two years of full-time or half-time service
The state expects HELP to increase the number of providers in areas of Hawai’i that need more medical care. It should also help bring in and keep healthcare workers by lowering their educational debt.
Eligible workers include doctors and other healthcare professionals such as:
- Dentists
- Nurses
- Physician Assistants
- Psychologists
- Social Workers
- Allied health professionals
- Alcohol and substance abuse counselors
Hawaii State Loan Repayment Program (HSLRP)
The Hawaii State Loan Repayment Program (HSLRP) is a federal grant run through the Hawaii/Pacific Basin Area Health Education Center (AHEC). This program pays off qualified educational loans for primary care and behavioral health providers who work at nonprofit groups in health professional shortage areas (HPSAs).
To qualify for the Hawaii State Loan Repayment Program, professionals must:
- Have finished training in an approved program
- Have an active, unrestricted license
- Work in allowed fields like medicine, dentistry, nursing, mental health and substance abuse counseling
- Serve at approved sites that accept Medicare, Medicaid and CHIP
The program needs matching funds from the state department of health. It aims to address about $30 million in educational loan debt among healthcare providers in Hawaii. Governor Ke Kiaʻāina has stressed how important this program is for healthcare professionals working in rural areas and neighbor islands as set by the state.
Recent Changes in Student Loan Debt Relief
U.S. Supreme Court Ruling on Broad Debt Relief Plan (June 2023)
On June 30, 2023, the U.S. Supreme Court ruled against President Biden’s plan to cancel up to $20,000 of student loan debt for millions of Americans. Nearly 25 million people had applied for this relief. After this decision, federal student loan payments, which were stopped during the pandemic, started again in Fall 2023.
New Actions by the U.S. Department of Education
After the Supreme Court’s decision, the Department of Education announced new actions to help borrowers. These include:
- New income-driven repayment plans like the SAVE plan
- Steps to prevent harm to borrowers’ credit
- Other ways to provide debt relief
Important Factors for All Borrowers in Hawaii
Know Your Loan Types
Find out if your loans are federal or private, as most forgiveness programs only work with federal loans. You might need to combine loans for certain programs like the Public Service Loan Forgiveness program.
Check Qualifying Employment and Service Needs
For PSLF, use the PSLF Help Tool on StudentAid.gov and send in employment forms often. For state programs like HSLRP and HELP, know the specific service promises and allowed sites.
Keep Good Records
Keep detailed records of all loan payments, employment forms and messages with loan companies.
Tax Effects of Forgiven Debt
Some forgiveness programs offer tax free relief, but others may create taxable income. Talk to a tax expert about your case.
Tools, Resources and Finding Aid in Hawaii
Student Loan Calculators and Planning Tools
Use online tools to figure out possible repayment amounts under different plans. The National Health Service Corps, Student Loan Planner and StudentAid.gov offer helpful tools.
Application Help and Contact Information
- Federal Programs: Visit StudentAid.gov
- HELP Program: Email helpprg@hawaii.edu or call (808) 778-7961
- HSLRP: Contact the Hawaii/Pacific Basin AHEC
Finding Hawaii-Specific Aid
Key resources include:
- Hawaii Department of Health
- Hawaii Healthcare Association
- University of Hawaii System
- Hawaii Community Foundation
- Hawaii/Pacific Basin Area Health Education Center
Common Questions
Q1: Can I get my student loans cleared through bankruptcy in Hawaii?
A: Most times, student loans are very hard to clear in bankruptcy. Look at forgiveness and repayment programs first.
Q2: What’s the main difference between the HSLRP and HELP programs?
A: HSLRP is federally funded for primary care and behavioral health providers in nonprofit HPSAs. HELP is state funded, covers more types of healthcare professionals and needs service within Hawaii.
Q3: Are there Hawaii specific loan forgiveness options for non healthcare jobs?
A: While most state programs focus on healthcare workers, check with professional groups and the official Hawaii state government website for other options.
Q4: How is the SAVE plan different from other repayment plans?
A: The SAVE plan offers a bigger income exemption, faster forgiveness for smaller loans and stops balances from growing due to unpaid interest.
Q5: What should I do if I’m not sure if my employer qualifies for Public Service Loan Forgiveness?
A: Use the PSLF Help Tool on StudentAid.gov and send in employment forms yearly.
Q6: Where can I find official updates on federal student loan forgiveness policies?
A: Visit StudentAid.gov and ed.gov for the most trustworthy information.
Q7: Is forgiven student loan debt always tax free?
A: No. While forgiveness under programs like PSLF is often tax free federally, debt forgiven under Income-Driven Repayment plans may be taxable. Check current IRS rules and talk to a tax expert.
If you may qualify for any of these programs, start the application process soon. Repayment help through these programs can greatly reduce your student loan debt and better your money future.