Arizona Student Loan Forgiveness Programs
Arizona offers student loan repayment assistance programs for doctors, nurse practitioners, behavioral health workers, and veterinarians who practice where the state is short on them. The program with the widest reach is the State Loan Repayment Program, which skipped a year of new awards in 2025 when federal funding lapsed and reopened for 2026. Teachers get their help up front through the Arizona Teachers Academy, and everyone else should start with federal forgiveness programs.
Arizona Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Arizona State Loan Repayment Program (PCPLRP and RPPCPLRP) | Primary care physicians, dentists, NPs, PAs, midwives, pharmacists, and behavioral health providers | $65,000 (physicians and dentists) or $50,000 (other providers) for the first 2 years | 2 years in a shortage area | Annual Cycle |
| Behavioral Health Loan Repayment Program | Behavioral health providers and nurses at behavioral health facilities | $50,000 for the first 2 years, then $25,000/year | 2 years full time at an eligible facility | Annual Cycle |
| Arizona Veterinary Loan Assistance Program (AVLAP) | Veterinarians who earned a DVM after January 1, 2023 | $100,000 or your loan balance, whichever is less | 4 years full time in Arizona, 2 in shortage or shelter work | Rolling |
| Arizona Teachers Academy | Students in teacher preparation programs at participating public universities and colleges | Tuition and fees | 1 year teaching in an Arizona public school per year funded | Open |
| Arizona Teacher Student Loan Program | Future teachers at private Arizona colleges | Tuition, fees, and instructional materials | 1 year teaching in an Arizona public school per year funded | Open |
| WICHE Professional Student Exchange Program (PSEP) | Arizona residents in dentistry, optometry, osteopathic medicine, podiatry, and veterinary medicine | State-paid tuition support at participating schools | Return to practice in Arizona | Annual Cycle |
Programs That Help Repay Loans You Already Have
Arizona borrowers carry roughly $35,100 in federal student debt on average, according to our Arizona student loans and financial aid breakdown. These programs send money toward that debt once you're working in a qualifying job. Compare them against Public Service Loan Forgiveness, since many qualifying Arizona employers are also PSLF employers.
Arizona State Loan Repayment Program (PCPLRP And RPPCPLRP)
The Arizona Department of Health Services runs two loan repayment programs together as the State Loan Repayment Program: one for providers at public and nonprofit sites in shortage areas, and one for rural private practices (ADHS provider information). Physicians and dentists at the highest-need sites can receive up to $65,000 for their first two years, and nurse practitioners, physician assistants, pharmacists, and behavioral health providers can receive up to $50,000. Doctors can compare those amounts with the federal options in our breakdown of student loan forgiveness for doctors.
The program stopped making new awards in 2025 because its federal grant ended August 31, 2025, which left 69 applicants without funding, and the state set applications to reopen with a January 12, 2026 deadline for a grant cycle starting July 1, 2026 (AZFamily). Nurse practitioners and midwives weighing this against federal Nurse Corps funding can compare both in our nursing student loan forgiveness roundup.
| Administered by | Arizona Department of Health Services |
| Who qualifies | Physicians in family medicine, internal medicine, pediatrics, geriatrics, OB-GYN, and psychiatry; dentists; nurse practitioners; physician assistants; certified nurse midwives; pharmacists; psychologists, clinical social workers, marriage and family therapists, and professional counselors |
| Award | Up to $65,000 (physicians and dentists) or $50,000 (other providers) for the first two years full time, scaled by the site's shortage score, with smaller renewal awards in later years and half-time awards at half those amounts |
| Commitment | At least two years at a site in a federally designated shortage area, or an Arizona Medically Underserved Area for rural private practices |
| Status | Annual cycle; ADHS's program page doesn't list a current deadline |
| Official source | ADHS Loan Repayment Program |
Behavioral Health Loan Repayment Program
This ADHS program pays up to $50,000 for an initial two years of service, and up to $25,000 a year after that, to behavioral health providers and nurses at behavioral health hospitals and residential facilities in mental health shortage areas (ADHS application information). Staff at the Arizona State Hospital qualify regardless of location. Counselors and social workers at nonprofit facilities should also look at our breakdown of nonprofit student loan forgiveness.
| Administered by | Arizona Department of Health Services |
| Who qualifies | Licensed or certified psychiatrists, psychologists, physician assistants, nurse practitioners, clinical social workers, professional counselors, marriage and family therapists, behavioral health technicians, registered nurses, practical nurses, and physicians with behavioral health residencies |
| Award | Up to $50,000 for the first two years and up to $25,000 a year after that; applicants with smaller balances receive their actual debt |
| Commitment | At least two years of full-time direct patient care (36 hours a week, 45 weeks a year) at the Arizona State Hospital or a licensed behavioral health hospital or residential facility in a shortage area |
| Status | Applications run from late January to March 1 each year, and awards depend on available funds |
| Official source | ADHS Behavioral Health LRP information |
Arizona Veterinary Loan Assistance Program (AVLAP)
AVLAP pays up to $100,000, or your remaining veterinary school loan balance if that's lower, to veterinarians who work in Arizona for at least four years (Arizona Board of Regents). At least two of those years must be in agricultural practice in a USDA-designated shortage area or at a nonprofit, county, or municipal animal shelter. Vets can stack it with the federal program covered in our list of student loan forgiveness programs.
| Administered by | Arizona Board of Regents ([email protected]) |
| Who qualifies | Veterinarians with a DVM awarded after January 1, 2023, a current Arizona veterinary license, and educational loans that aren't delinquent |
| Award | Up to $100,000 or the loan balance, whichever is less |
| Commitment | Four years full time in Arizona after licensure, including at least two years in shortage-area agricultural practice or shelter medicine |
| Status | Funding is awarded first-come, first-served; no deadline is posted |
| Official source | ABOR AVLAP page |
Service-Based Funding For Students In Training
These three programs pay for school up front and ask you to work in Arizona afterward. They count as forgiveness only if you complete the service, and walking away means repaying part or all of the support, so weigh them against a private student loan with no strings attached.
Arizona Teachers Academy
State law directs eligible colleges to run the Arizona Teachers Academy, which covers tuition and fees in exchange for one year of teaching in an Arizona public school for each year of funding (A.R.S. 15-1655). Students who don't finish the service must pay back a proportional share of the scholarship to the Arizona Board of Regents. Teachers who already have loans should read our list of student loan forgiveness options for teachers instead.
| Administered by | Arizona Board of Regents and participating schools |
| Participating schools | Arizona State University, Northern Arizona University, University of Arizona, Scottsdale Community College, Rio Salado College, Pima Community College, and Central Arizona College (Arizona Teachers Academy) |
| Award | Tuition and fees for each year of the program |
| Service | One full school year of teaching in an Arizona public school for each year funded |
| Penalties | Proportional repayment of the scholarship if you don't teach |
| Official source | Arizona Teachers Academy |
Arizona Teacher Student Loan Program
This ABOR program extends the same deal to students at private Arizona colleges: a loan for tuition, fees, and instructional materials that you work off by teaching in an Arizona district or charter public school (Arizona Board of Regents). Graduates get a 12-month grace period to find a teaching job or start repaying (ABOR FAQ). Compare the terms with a private student loan before signing.
| Administered by | Arizona Board of Regents |
| Who qualifies | Arizona residents enrolled at a qualifying private college who file the FAFSA each year |
| Award | Tuition, fees, and instructional materials for up to four years (undergraduates) or two years (alternative certification and graduate students without a teaching degree) |
| Service | One year of teaching in an Arizona public school for each year of loan received |
| Penalties | The loan must be repaid if you don't teach |
| Official source | ABOR Arizona Teacher Student Loan Program |
WICHE Professional Student Exchange Program (PSEP)
Arizona uses the Western Interstate Commission for Higher Education's PSEP to subsidize residents' tuition at participating programs in dentistry, optometry, osteopathic medicine, podiatry, and veterinary medicine (WICHE). Graduates must return to practice in Arizona, and WICHE says states with a payback obligation require repayment of the support plus interest penalties from those who don't serve (WICHE FAQ). Dental and medical students should compare it with a standard medical school student loan.
| Administered by | Arizona Board of Regents, through WICHE |
| Who qualifies | Arizona residents applying to participating programs in the five supported fields |
| Service | Return to practice in Arizona; the length of service isn't published on WICHE's summary |
| Deadlines | October 15 of the year before enrollment; late applications get secondary consideration |
| Official source | WICHE PSEP state information |
Federal Forgiveness Options For Arizona Borrowers
Federal programs reach far more Arizona borrowers than the six state programs, and each one runs on its own rules for combining with a state award. Our full list of forgiveness programs covers every federal option.
Public Service Loan Forgiveness (PSLF). Borrowers who make 120 qualifying payments while working full time for a government agency or qualifying nonprofit get their remaining Direct Loan balance forgiven tax-free (StudentAid.gov). Arizona public school teachers, state, county, and city employees, and public university staff all work for qualifying employers, and our PSLF breakdown covers the 2026 employer rule litigation.
Teacher Loan Forgiveness. Teachers with five consecutive years at a low-income school can receive up to $17,500 if they teach secondary math, science, or special education, or up to $5,000 in other subjects (StudentAid.gov). The same years can't count toward both Teacher Loan Forgiveness and PSLF, which our teacher forgiveness breakdown walks through.
Repayment Assistance Plan (RAP) and IBR. RAP launched July 1, 2026, and forgives any remaining balance after 360 qualifying payments (How RAP Works). Borrowers deciding between plans can run the numbers in our RAP vs. IBR comparison.
Health care programs. The National Health Service Corps pays full-time primary care providers up to $75,000 for a two-year commitment, plus a $5,000 bonus for providers who serve patients in Spanish (HRSA). Nurse Corps pays 60% of nursing debt for two years of service and another 25% for a third year (HRSA), and the STAR program pays up to $250,000 for six years in substance use disorder treatment (HRSA). Our nursing and health care forgiveness roundup covers eligibility for each.
Veterinarians. Arizona vets can pair AVLAP with the USDA Veterinary Medicine Loan Repayment Program, which pays up to $25,000 a year for service in designated shortage areas (USDA NIFA). Vets carrying private loans should also check our list of private student loan forgiveness options.
Is Student Loan Forgiveness Taxed In Arizona?
Arizona has no addition to income for student loan forgiveness and other student loan discharges, so forgiveness that's tax-free on your federal return, such as PSLF, Teacher Loan Forgiveness, and death and disability discharges, stays tax-free in Arizona (The College Investor). Arizona conforms to federal adjusted gross income as of a specific date rather than automatically.
Forgiveness under income-driven plans became federally taxable again on January 1, 2026, when the American Rescue Plan exclusion expired (Taxes And Student Loan Forgiveness). Because Arizona adopts the federal code by date, whether IDR forgiveness granted in 2026 shows up in Arizona income depends on which version of the code Arizona has adopted for that year, so confirm with the Arizona Department of Revenue and estimate the federal bill with our student loan tax bomb calculator.
Nurse Corps payments aren't exempt from federal income and employment taxes (HRSA). Ask the administering agency whether your Arizona state award will be reported as income, and read our explainer on the 1099-C and student loan forgiveness before filing.
If Your Job Isn't Covered
Borrowers outside health care, veterinary medicine, and teaching won't find an Arizona program, but three options remain. Employers can pay up to $5,250 a year toward your student loans tax-free, and our list of companies that offer student loan repayment assistance shows who offers it.
Borrowers with private loans or high-rate federal loans they don't plan to have forgiven can lower their rate through student loan refinancing. Refinancing federal loans into a private loan ends eligibility for PSLF, RAP, and IBR, so don't refinance a balance you expect to have forgiven.
Families with leftover 529 money can put up to $10,000 per beneficiary toward student loans, which our 529 plan for student loan repayment explainer covers. Arizona savers should also review the Fidelity Arizona College Savings Plan.
Frequently Asked Questions
Does Arizona Have A Student Loan Forgiveness Program?
Arizona offers student loan repayment assistance programs rather than broad loan forgiveness. It runs six service-based programs for health care providers, behavioral health workers, veterinarians, and future teachers and health professionals. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
Is The Arizona State Loan Repayment Program Still Paused?
ADHS paused new awards in 2025 after its federal grant ended August 31, 2025, and set applications to reopen with a January 12, 2026 deadline for a new grant cycle starting July 1, 2026 (AZFamily). Providers who missed that window can look at the federal options in our doctor forgiveness breakdown while they wait for the next cycle.
Can Arizona Teachers Get Help Repaying Student Loans?
Arizona doesn't run a loan repayment program for working teachers, but the Arizona Teachers Academy pays tuition and fees for future teachers who agree to teach in Arizona public schools (A.R.S. 15-1655). Current teachers can use federal Teacher Loan Forgiveness and PSLF, but years used for Teacher Loan Forgiveness can't also count toward PSLF.
Can Arizona Veterinarians Get Help Repaying Student Loans?
Yes, AVLAP pays up to $100,000 to vets with a DVM earned after January 1, 2023 who work four years in Arizona, including two in shortage-area agricultural practice or shelter medicine (Arizona Board of Regents). Our list of student loan forgiveness programs covers the federal USDA program vets can add.
Is Student Loan Forgiveness Taxable In Arizona?
Arizona has no addition to income for forgiven student loans, so PSLF and other federally tax-free forgiveness stays tax-free in Arizona (The College Investor). Income-driven plan forgiveness granted after 2025 is federally taxable, so use our tax bomb calculator to estimate what you'd owe.
Related Arizona Resources
How We Sourced This Data
Program details on this page come from the administering agencies and state law: the Arizona Department of Health Services (Loan Repayment Program pages and provider application materials), the Arizona Board of Regents, the Arizona Teachers Academy, Arizona Revised Statutes 15-1655, and the Western Interstate Commission for Higher Education. Federal program details come from StudentAid.gov, HRSA, and USDA NIFA, and the 2025 pause of the State Loan Repayment Program was cross-checked against reporting from AZFamily. Read more about how we fact-check and update content.
Page refreshed annually in August, after Arizona's legislative session and agency rule approvals, and reviewed in January for tax season. Last full refresh: September 23, 2026.
Editor: Clint Proctor Reviewed by: Claire Tak