Illinois Student Loan Forgiveness Programs

Illinois offers more student loan repayment assistance programs than most states, with eight that pay toward existing loans and six that fund school in exchange for service. The biggest awards go to behavioral health workers, human services staff at state-funded agencies, and clinicians in shortage areas, but several ISAC programs were closed or unfunded for 2026-27, so check status before you count on one. Borrowers outside these fields should start with federal forgiveness programs, where the bigger dollars are.

Community Behavioral Health Care Professional Loan Repayment Program

This Illinois Student Assistance Commission (ISAC) program pays behavioral health workers at community mental health centers, behavioral health clinics, substance use treatment centers, and state-operated psychiatric hospitals in underserved or rural shortage areas (ISAC). Psychiatrists can receive up to $40,000 a year and licensed clinical social workers and counselors up to $15,000 a year, for as many as four years. Social workers and counselors at nonprofits should also look at nonprofit student loan forgiveness options.

Human Services Professional Loan Repayment Program

ISAC pays up to $15,000 a year to full-time human services professionals with a master's degree, $10,000 with a bachelor's degree, and $2,000 with an associate degree, plus $5,000 a year for those who are independently licensed (ISAC). Eligible employers are community-based agencies funded by the Illinois departments of Human Services, Children and Family Services, Juvenile Justice, Aging, or Public Health. Many of those agencies are nonprofits, so their staff can also pursue PSLF.

Illinois National Health Service Corps State Loan Repayment Program (SLRP)

The Illinois Department of Public Health (IDPH) pays up to $75,000 for a first two-year agreement to primary care clinicians, or $50,000 for dentists and psychiatrists, with one-year renewals of $20,000 for the second and third agreements and $10,000 for the fourth and fifth (IDPH). Part-time providers receive half those amounts. Primary care doctors can compare this with the options in our student loan forgiveness for doctors roundup.

Underserved Health Care Provider Workforce Program

IDPH repays up to $50,000 in educational loans for primary care physicians, general surgeons, emergency medicine physicians, anesthesiologists, obstetricians, APRNs, physician assistants, and chiropractors who work full time or half time in a shortage area (IDPH). Anesthesiologists and chiropractors became eligible after January 1, 2024. Physician assistants and nurse practitioners can find more federal options in our nursing and health care forgiveness roundup.

Illinois Teachers Loan Repayment Program

ISAC adds a matching award of up to $5,000 for Illinois teachers who've already been approved for federal Teacher Loan Forgiveness after five years at a low-income school (ISAC). It rewards the same five years that federal forgiveness does, so read our breakdown of student loan forgiveness for teachers before choosing between that path and PSLF.

Nurse Educator Loan Repayment Program

Nurse educators who've taught for at least 12 consecutive months in an approved Illinois nursing program can receive up to $5,000 a year for up to four years (ISAC). Each renewal requires another 12 consecutive months of teaching. Faculty at public colleges can also count that time toward PSLF, as our graduate school forgiveness breakdown explains.

Veterans' Home Medical Providers' Loan Repayment Program

This program, formerly limited to nurses, now pays physicians, certified nurse practitioners, registered nurses, licensed practical nurses, and certified nursing assistants up to $5,000 a year for up to four years (ISAC). Each award requires 12 months of work at an approved State of Illinois veterans' home. Nurses should also check the federal Nurse Corps program in our nursing student loan forgiveness roundup.

School And Municipal Social Work Shortage Loan Repayment Program

ISAC offers a one-time award of up to $6,500 to social workers who've worked at least 12 consecutive months for an Illinois public school or municipality, excluding police departments (ISAC). School social workers can pair it with the federal options in our PSLF breakdown.

Teachers Of Illinois Scholarship Program (TISP)

TISP replaced the Minority Teachers of Illinois Scholarship starting in 2025-26 (ISAC). It covers up to the full cost of attendance for up to four years for students from underserved Illinois districts who are training to teach, and recipients must teach in an Illinois district whose three-year average teacher vacancy rate is above the state average (ISAC). Our teacher forgiveness breakdown covers what's available once you're in the classroom.

Golden Apple Scholars Of Illinois

Golden Apple Scholars receive up to $2,500 in their first or second year and up to $5,000 in their third, fourth, or fifth year, then must teach full time for at least five years at an Illinois School of Need (ISAC). Teaching must start within two years of finishing your program. Those five years can also line up with federal Teacher Loan Forgiveness, covered in our teacher forgiveness breakdown.

Illinois Special Education Teacher Tuition Waiver (SETTW)

SETTW waives tuition and mandatory fees for up to four years for special education majors at Illinois public four-year universities who agree to teach special education in Illinois (ISAC). Special education teachers also qualify for the $17,500 tier of federal Teacher Loan Forgiveness, which our teacher forgiveness breakdown explains.

Nursing Education Scholarship

The Nursing Education Scholarship, which moved from IDPH to ISAC, pays a maximum of $9,238 or $18,856 a year in 2026-27, depending on degree type and school (ISAC). Recipients must start working as an LPN, RN, APRN, or nurse educator in Illinois within 12 months of graduating and stay for as long as the scholarship paid. Graduates with other nursing debt can look at federal Nurse Corps in our nursing forgiveness roundup.

School Social Work Scholarship

Social workers with an MSW who are earning an Illinois Professional Educator License with a school social work endorsement can have tuition and mandatory fees covered, up to the cost of the most expensive comparable program at an Illinois public university (ISAC). Recipients must work as a social worker in an Illinois school for two years for each year of aid. That school job also counts toward PSLF for any federal loans you already carry.

Podiatric Medicine Scholarship Program

IDPH covers full tuition, matriculation fees, and a living stipend for up to four years for Illinois residents at an Illinois podiatric medical school who agree to practice full time in a shortage area (IDPH). Recipients owe one year of practice for each year of aid, and defaulting costs three times the annual award for each year of school. Compare those terms with a standard medical school student loan before signing.

Illinois automatically follows federal changes to the definition of income, so it treats canceled student debt the same way the IRS does (The College Investor). PSLF, Teacher Loan Forgiveness, and death and disability discharges stay tax-free at both levels.

Forgiveness under income-driven plans became federally taxable again on January 1, 2026, when the American Rescue Plan exclusion expired, and Illinois follows that treatment (Taxes And Student Loan Forgiveness). Borrowers expecting IBR or RAP forgiveness can estimate the bill with our student loan tax bomb calculator.

Ask ISAC or IDPH whether your Illinois award will be reported as income, and read our explainer on the 1099-C and student loan forgiveness before filing.

Does Illinois Have A Student Loan Forgiveness Program?

Illinois offers student loan repayment assistance programs rather than broad loan forgiveness. It runs 14 service-based programs for behavioral health and human services workers, clinicians, nurses, social workers, and teachers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.

What Happened To The Minority Teachers Of Illinois Scholarship?

ISAC replaced it with the Teachers of Illinois Scholarship Program starting in 2025-26, and former MTI recipients should contact ISAC Student Services about their teaching commitment (ISAC). Working teachers can find repayment help in our teacher forgiveness breakdown.

How Much Can Illinois Teachers Get Toward Their Student Loans?

Teachers who earn federal Teacher Loan Forgiveness can add up to $5,000 from the Illinois Teachers Loan Repayment Program, for as much as $22,500 combined for math, science, and special education teachers (ISAC). Public school teachers can pursue PSLF instead, but the same years can't count toward both.

Can Illinois Mental Health Workers Get Help Repaying Student Loans?

Yes. The Community Behavioral Health Care Professional program pays up to $40,000 a year to psychiatrists and up to $15,000 a year to LCSWs, LCPCs, and LMFTs, and the Human Services program pays up to $20,000 a year to licensed master's-level staff (ISAC). Our nonprofit student loan forgiveness page covers the federal routes for the same jobs.

Is Student Loan Forgiveness Taxable In Illinois?

Illinois follows federal treatment, so PSLF and Teacher Loan Forgiveness are tax-free while income-driven plan forgiveness granted after 2025 is taxable (The College Investor). Use our tax bomb calculator to estimate what you'd owe.