Iowa Student Loan Forgiveness Programs
Iowa offers student loan repayment assistance programs for health care workers, veterinarians, and teachers who take jobs where the state needs them. The biggest is the Health Care Professional Incentive Program, which a 2025 law created while eliminating older programs, and it only takes people finishing their training. Experienced clinicians and anyone whose job isn't on the list below should start with federal forgiveness programs.
Iowa Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Health Care Professional Incentive Program | Physicians, ARNPs, PAs, RNs, PTs, OTs, counselors, social workers, and nurse educators in their final year of training | From $50,000 (counselors, social workers, nurse educators) to $200,000 (physicians) | 5 years full-time or 7 years part-time in an eligible Iowa practice area | Annual Cycle |
| Rural Iowa Veterinarian Loan Repayment Program | Veterinarians in their final DVM year or within 5 years of graduating | $15,000/year, up to $60,000 | 4 consecutive years full-time in a shortage or rural area | Annual Cycle |
| Teach Iowa Scholar | Top-25% teacher prep graduates teaching in a shortage area | $4,000/year for up to 5 years ($20,000) | Full-time teaching in a shortage area each award year | Open |
Programs That Help Repay Loans You Already Have
Iowa borrowers carry roughly $30,500 in federal student debt on average, according to our Iowa student loans and financial aid breakdown. These programs send money toward that debt once you're working in a qualifying job, and the Iowa Department of Education says only federal loans qualify. Compare them against Public Service Loan Forgiveness, since public schools, public hospitals, and nonprofit clinics all count as PSLF employers.
Health Care Professional Incentive Program
HF 972, signed May 28, 2025, created the Health Care Professional Incentive Program and eliminated several older health care award and grant programs (LegiScan). Applicants can't have received awards from the programs it replaces: the Primary Care Provider Loan Repayment Program, the Rural Iowa Primary Care Loan Repayment Program, the Health Care Professional Recruitment Program, the Health Care Award Program, and the Mental Health Professional Loan Repayment Program (Iowa Department of Education). Physicians can receive up to $200,000, which rivals the federal awards in our breakdown of student loan forgiveness for doctors.
Awards are paid in yearly installments at the end of each year of qualifying work, and recipients choose between an income bonus and payments toward federal loans. The program sets a target number of awards for each profession, from five occupational therapists and five nurse educators to 24 registered nurses. Nurses should also compare the federal options in our nursing student loan forgiveness roundup.
| Administered by | Iowa Department of Education (formerly Iowa College Aid) |
| Who qualifies | Physicians (MD or DO), advanced registered nurse practitioners, physician associates, registered nurses, physical therapists, occupational therapists, licensed professional counselors, social workers, and nurse educators in their final year of training, defined for the current cycle as finishing school, residency, or clinicals between September 1, 2025, and August 31, 2026 |
| Award | Up to $200,000 (physicians), $105,000 (ARNPs), $100,000 (physician associates), $70,000 (physical and occupational therapists), $60,000 (registered nurses), or $50,000 (counselors, social workers, and nurse educators) |
| Commitment | Five years full time or seven years part time in an eligible Iowa practice area; the department hasn't published its practice area map yet |
| Eligible loans | Federal Stafford, Grad PLUS, and federal consolidation loans only |
| Status | The next application window runs February 1 to March 31, 2027, with notifications in July 2027 |
| Official source | Health Care Professional Incentive Program |
Rural Iowa Veterinarian Loan Repayment Program
This program pays up to $15,000 a year, and $60,000 in total, toward the federal loans of veterinarians who practice full time for four consecutive years in a USDA veterinary shortage area or a rural Iowa service area (Iowa Department of Education). Food supply veterinarians and Iowa high school graduates get priority, and rural service commitment areas must chip in a 12.5% match. Vets with private loans should also check our list of private student loan forgiveness options.
| Administered by | Iowa Department of Education |
| Who qualifies | Veterinarians in the final year of a DVM program or who finished within the past five years, licensed (or about to be) in Iowa, who haven't taken part in the federal Veterinary Medicine Loan Repayment Program |
| Eligible areas | USDA-designated veterinary shortage areas, or Iowa cities under 26,000 people that are more than 20 miles from a city of at least 50,000 |
| Award | Up to $15,000 after each 12-month employment period, for a maximum of $60,000 |
| Eligible loans | Federal subsidized and unsubsidized Stafford loans and Grad PLUS loans |
| Status | The 2026-27 cycle opened February 1, 2026; the department doesn't publish a closing date on the program page |
| Official source | Rural Iowa Veterinarian Loan Repayment Program |
Teach Iowa Scholar
Teach Iowa Scholar pays up to $4,000 a year for up to five consecutive years to teachers who graduated in the top 25% of their teacher preparation program and teach full time in an Iowa shortage area (Iowa Department of Education). Because of funding limits, the 2026-27 cycle only takes 2023-24, 2024-25, and 2025-26 graduates, with renewals first and rural district teachers next. It's Iowa's only teacher program, so pair it with our list of student loan forgiveness options for teachers.
| Administered by | Iowa Department of Education |
| Who qualifies | Teachers, administrators, or other school professionals who finished a licensure program on or after January 1, 2013, in the top 25% academically, with an Iowa license and endorsement in a 2026-27 shortage area and full-time work in that area |
| Award | Up to $4,000 a year for up to five consecutive years, sent to your lender or to you |
| Taxes | Payments sent directly to you are taxable income, and the state issues a 1099-MISC |
| Deadline | Apply through the Iowa Financial Aid Application by October 31, 2026 |
| Official source | Teach Iowa Scholar |
Federal Forgiveness Options For Iowa Borrowers
Federal programs reach far more Iowa borrowers than the three 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). Iowa public school teachers, state and county employees, and Regents 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. Clinicians who aren't new graduates can't use Iowa's incentive program, so federal programs matter more here. The National Health Service Corps pays full-time primary care providers up to $75,000 for a two-year commitment in its 2026 cycle, or $80,000 with a $5,000 Spanish-language enhancement (HRSA), and Nurse Corps pays 60% of nursing debt for two years of service and another 25% for a third year (HRSA). The STAR program pays up to $250,000 for six years in substance use disorder treatment (HRSA), and our nursing and health care forgiveness roundup covers eligibility for each.
Veterinarians. The USDA Veterinary Medicine Loan Repayment Program pays up to $25,000 a year for service in designated shortage areas (USDA NIFA), but past federal participants can't join Iowa's rural vet program. Compare both with our list of private student loan forgiveness options if you also carry private debt.
Is Student Loan Forgiveness Taxed In Iowa?
Iowa automatically conforms to federal tax rules, 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, and Iowa also has a subtraction for military student loan repayment.
Forgiveness under income-driven plans became federally taxable again on January 1, 2026, when the American Rescue Plan exclusion expired, and Iowa 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.
Teach Iowa Scholar payments sent directly to you are taxable income, and the state issues a 1099-MISC (Iowa Department of Education). Ask the department how other awards will be reported, 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 Iowa 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. Iowa savers should also review ISave 529, formerly College Savings Iowa.
Frequently Asked Questions
Does Iowa Have A Student Loan Forgiveness Program?
Iowa offers student loan repayment assistance programs rather than broad loan forgiveness. It runs three service-based loan repayment programs for health care workers, veterinarians, and teachers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
What Happened To The Rural Iowa Primary Care Loan Repayment Program?
HF 972 eliminated several health care programs in 2025 and created the Health Care Professional Incentive Program (LegiScan). Past recipients of the Rural Iowa Primary Care program and four other predecessor programs can't apply (Iowa Department of Education). Physicians can now receive up to $200,000 for five years of full-time work, and our student loan forgiveness for doctors page covers federal alternatives.
How Much Can Iowa Teachers Get Toward Their Student Loans?
Teach Iowa Scholar pays up to $4,000 a year for five years, or $20,000 in total, and federal Teacher Loan Forgiveness adds up to $17,500 for five years at a low-income school (StudentAid.gov). Public school teachers can also pursue PSLF, but years used for Teacher Loan Forgiveness can't also count toward PSLF.
Can Iowa Nurses Get Help Repaying Student Loans?
New registered nurses can receive up to $60,000, nurse practitioners up to $105,000, and nurse educators up to $50,000 through the Health Care Professional Incentive Program (Iowa Department of Education). Experienced nurses who don't qualify should look at federal Nurse Corps in our nursing forgiveness roundup.
Is Student Loan Forgiveness Taxable In Iowa?
Iowa 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.
Related Iowa Resources
How We Sourced This Data
Program details on this page come from the Iowa Department of Education's loan repayment program pages (the former Iowa College Aid) and HF 972 (2025) as tracked on LegiScan. Federal program details come from StudentAid.gov, HRSA, and USDA NIFA. Read more about how we fact-check and update content.
Page refreshed annually in August, after Iowa'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
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