Maine Student Loan Forgiveness Programs

Maine offers one of the broadest student loan repayment assistance programs in the country: a refundable tax credit worth up to $2,500 a year on loan payments for almost every graduate who stays in the state. The Finance Authority of Maine (FAME) also runs targeted programs for dentists, nursing faculty, future teachers, and veterinarians. FAME has no plans to open its Health Care Provider Loan Repayment Pilot in 2026, so health care workers should also look at federal forgiveness programs.

Student Loan Repayment Tax Credit (SLRTC)

The SLRTC replaced the Opportunity Maine credit for tax years starting in 2022 and refunds up to $2,500 a year, and $25,000 over a lifetime, of the student loan payments Maine residents make (Maine Revenue Services). It covers loans for an associate, bachelor's, or graduate degree earned after 2007 at any accredited school, in Maine or elsewhere (Maine Revenue Services). Borrowers can claim it on top of any federal plan, which our best student loan repayment plans breakdown compares.

Maine Dental Education Loan Repayment Program

FAME pays up to $25,000 a year, and $100,000 total, toward the loans of dentists and dental auxiliary professionals who work full time in a dental shortage area or medically underserved area of Maine (FAME). The practice has to serve at least 25% of patients regardless of ability to pay and accept MaineCare. Dentists comparing options should also review our graduate school forgiveness breakdown.

Nursing Education Loan Repayment Program

FAME repays up to $40,000 over three years for full-time nursing faculty with a doctorate and up to $20,000 for full-time faculty with a master's degree, with half those amounts for part-time faculty (FAME). Recipients teach in a Maine nursing education program for at least three years. Nurses who don't fit this program have other routes in our roundup of student loan forgiveness for nurses.

Educators For Maine

FAME lends $5,000 a year to high school seniors and undergraduates and $4,000 a year to graduate students pursuing initial teacher certification or child care credentials (FAME). Each year of eligible teaching forgives one year of loans, and teaching full time in a critical shortage area forgives two years of loans per year. Pair it with our list of student loan forgiveness options for teachers.

Maine Dental Education Loan

FAME lends dental students up to $25,000 a year, and $100,000 total, and forgives 25% of the loan for each year of full-time primary dental care in an underserved area of Maine at an eligible facility (FAME). Current dentists with existing loans should use the repayment program above instead. Compare the terms with a standard private student loan before borrowing.

Maine Veterinary Medicine Loan

FAME lends veterinary students $35,000 for the 2026–2027 year, up to $140,000 total, and forgives 25% of the original loan for each full year of practice in an underserved area of Maine that includes livestock or emergency care, within 10 years of finishing training (FAME). Four years of qualifying practice clears the full loan. Vets with private loans should also check our list of private student loan forgiveness options.

Maine conforms to the federal definition of adjusted gross income as of a specific date rather than automatically, so its treatment of forgiven debt depends on which version of the federal code it has adopted (The College Investor). PSLF, Teacher Loan Forgiveness, and death and disability discharges are tax-free federally.

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). Borrowers expecting IBR or RAP forgiveness should confirm Maine's treatment with Maine Revenue Services and estimate the bill with our student loan tax bomb calculator.

NHSC loan repayment awards are tax-free (HRSA). Ask FAME whether your Maine award will be reported as income, and read our explainer on the 1099-C and student loan forgiveness before filing.

Does Maine Have A Student Loan Forgiveness Program?

Maine offers student loan repayment assistance programs rather than broad loan forgiveness. It offers a refundable tax credit on student loan payments and five FAME programs for dentists, nursing faculty, teachers, and veterinarians. Borrowers outside those fields rely on the tax credit, federal programs like PSLF, and income-driven plan forgiveness.

What Happened To The Opportunity Maine Tax Credit?

The Student Loan Repayment Tax Credit replaced the Educational Opportunity Tax Credit, known as Opportunity Maine, for tax years starting on or after January 1, 2022 (Maine Revenue Services). The new credit is refundable and capped at $2,500 a year, and our best repayment plans breakdown shows how to pair it with a federal plan.

Is The Maine Health Care Provider Loan Repayment Program Still Open?

FAME says it has no plans to open an application cycle for the Health Care Provider Loan Repayment Pilot in 2026, and the last cycle closed March 31, 2025 (FAME). Nurses and allied health workers should look at the federal options in our nursing forgiveness roundup.

How Much Can Maine Teachers Get Toward Their Student Loans?

Future teachers can borrow up to $5,000 a year through Educators for Maine and have it forgiven through teaching, at double speed in critical shortage areas (FAME). Working teachers can claim the SLRTC and pursue federal Teacher Loan Forgiveness or PSLF.

Is Student Loan Forgiveness Taxable In Maine?

PSLF and Teacher Loan Forgiveness are tax-free federally, and Maine follows the federal code as of a specific date (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.