Minnesota Student Loan Forgiveness Programs
Minnesota offers student loan repayment assistance programs for health care workers, rural veterinarians, and agriculture teachers who work where the state needs them. The Health Care Loan Forgiveness Program matters most, with awards from $6,000 a year for nurses to $41,000 a year for dentists. The legislature repealed the Teacher Shortage Loan Repayment Program and 2026 is its final round, so classroom teachers and anyone else not on the list below should start with federal forgiveness programs.
Minnesota Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Health Care Loan Forgiveness: Physicians | Family medicine, internal medicine, pediatrics, OB-GYN, and psychiatry physicians | $33,000/year for up to 4 years ($132,000 total) | 3 to 4 years in a rural area or urban shortage area | Annual Cycle |
| Health Care Loan Forgiveness: Dentists And Dental Therapists | Dentists serving public program or sliding-fee patients; rural dental therapists | $41,000/year for dentists ($164,000); $15,000/year for dental therapists ($60,000) | 3 to 4 years | Annual Cycle |
| Health Care Loan Forgiveness: Mental Health, APPs, And Pharmacists | Psychologists, LICSWs, LMFTs, LPCCs, LADCs, advanced practice providers, and rural pharmacists | $11,000 to $29,000/year depending on profession, up to $116,000 total | 3 to 4 years in a rural area or urban shortage area | Annual Cycle |
| Health Care Loan Forgiveness: Nurses | Hospital RNs, long-term care RNs and LPNs, rural public health nurses, and nurse faculty | $6,000 to $9,000/year depending on track, up to $36,000 total | 2 to 4 years depending on track | Open |
| Minnesota State Loan Repayment Program (SLRP) | OB-GYNs, women's health NPs, nurse midwives, dentists, dental therapists, and dental hygienists | Up to $37,500/year (primary care) or $25,000/year (dental), full time | 2 years at a nonprofit or public site in a shortage area | Annual Cycle |
| Rural Veterinarian Loan Repayment Program | University of Minnesota veterinary graduates in food animal practice | $15,000/year for up to 5 years ($75,000 total) | 5 consecutive years in rural Minnesota | Annual Cycle |
| Agricultural Education Loan Repayment Program | Grades 5–12 agricultural education teachers | $3,000/year, $15,000 total | 5 years full time in Minnesota | Open |
| Teacher Shortage Loan Repayment Program | Licensed teachers from underrepresented racial or ethnic groups, then rural and shortage-area teachers if funds allow | $1,000/year, $5,000 total | Classroom teaching each award year | Ends 2026 |
Programs That Help Repay Loans You Already Have
Minnesota borrowers carry roughly $34,800 in federal student debt on average, according to our Minnesota student loans and financial aid breakdown. Every Minnesota program pays toward loans you already have once you're working in a qualifying job. Many qualifying employers are also Public Service Loan Forgiveness employers, so check both.
Minnesota Health Care Loan Forgiveness Program
The Minnesota Department of Health runs one loan forgiveness program under Minnesota Statutes section 144.1501 with separate tracks for physicians, dentists, dental therapists, mental health professionals, advanced practice providers, pharmacists, and four groups of nurses (Minnesota Department of Health). Most tracks require three to four years of work at least 30 hours a week for 45 weeks a year, in a rural area or an urban shortage area. Physician awards now reach $33,000 a year, which puts four-year totals in line with the federal programs in our breakdown of student loan forgiveness for doctors.
Rural means outside the seven-county Twin Cities metro area, and five regional cities don't count as rural (Minnesota Department of Health). Nurses have four tracks with smaller awards, and our roundup of student loan forgiveness for nurses covers the federal programs they can add.
| Administered by | Minnesota Department of Health, Office of Rural Health and Primary Care |
| Physicians | Family practice, internal medicine, pediatrics, OB-GYN, and psychiatry physicians, or residents in their final year, receive up to $33,000 a year, for a $132,000 maximum over four years, in rural areas or urban shortage areas |
| Dentists | Up to $41,000 a year ($164,000 maximum) for dentists who serve at least 25% public program or sliding-fee patients |
| Dental therapists | Up to $15,000 a year ($60,000 maximum) in rural areas |
| Mental health professionals | Psychologists receive up to $29,000 a year ($116,000 maximum); LICSWs, LMFTs, LPCCs, and LADCs receive up to $11,000 a year ($44,000 maximum), in rural areas or urban shortage areas |
| Advanced practice providers | NPs, psychiatric NPs, PAs, nurse midwives, nurse anesthetists, and clinical nurse specialists in rural primary care receive up to $15,000 a year ($60,000 maximum); only psychiatric NPs qualify in urban shortage areas |
| Pharmacists | Up to $26,000 a year ($104,000 maximum) in rural areas |
| Nurses | Hospital RNs at nonprofit or public hospitals receive up to $6,000 a year for two years ($12,000); long-term care RNs and LPNs and rural public health nurses receive up to $6,000 a year ($24,000 maximum); nurse faculty receive up to $9,000 a year ($36,000 maximum) |
| Eligible loans | Government, commercial, and foundation education loans; credit card debt, family loans, and Parent PLUS loans don't qualify |
| Status | The Hospital RN track is open August 1 through October 6, 2026; every other track opens November 1, 2026, and closes January 6, 2027; all awards are subject to state funding |
| Official source | MDH Health Care Loan Forgiveness |
Minnesota State Loan Repayment Program (SLRP)
Minnesota's SLRP now focuses on obstetric and dental care, paying full-time primary care clinicians up to $37,500 a year and full-time dental providers up to $25,000 a year for at least two years at a nonprofit or public site in a Health Professional Shortage Area (Minnesota Department of Health). The 2026 program runs on $65,449 in federal funds and $100,000 in state money, and MDH expects only four to five awards. Physicians who miss out can compare the federal awards in our doctor forgiveness roundup.
| Administered by | Minnesota Department of Health, Office of Rural Health and Primary Care |
| Who qualifies | OB-GYN physicians, women's health nurse practitioners, certified nurse midwives, dental therapists, registered dental hygienists, and general and pediatric dentists |
| Award | Up to $37,500 a year for full-time primary care providers and $25,000 for full-time dental providers; part-time awards are half those amounts |
| Commitment | At least two years at a nonprofit private or public site, such as an FQHC, rural health clinic, tribal clinic, or health department, in a federally designated HPSA; years three and four depend on funding |
| Status | The 2026–27 window ran July 9 through September 9, 2026 |
| Official source | MDH State Loan Repayment Program |
Rural Veterinarian Loan Repayment Program
The Office of Higher Education pays up to $15,000 a year, for a total of up to $75,000 over five years, to University of Minnesota veterinary graduates who practice in rural Minnesota with at least half their work in food animal care (Minnesota Office of Higher Education). It's one of the few state programs for vets, and those in private practice can add the options in our list of private student loan forgiveness programs.
| Administered by | Minnesota Office of Higher Education, under Minnesota Statutes section 136A.1795 |
| Who qualifies | Final-year University of Minnesota College of Veterinary Medicine students or graduates within three years of applying |
| Award | Up to $15,000 a year for up to five years ($75,000 total) |
| Commitment | Five consecutive years, at least 30 hours a week for 45 weeks a year, in a designated rural area with at least 50% of work involving cattle, goats, pigs, poultry, or sheep |
| Status | The 2026 application ran November 3, 2025, through January 26, 2026; OHE hasn't posted the next window |
| Official source | OHE Rural Veterinarian Loan Repayment |
Agricultural Education Loan Repayment Program
Agricultural education teachers in grades 5 through 12 can receive up to $3,000 a year, capped at $15,000 in total, in exchange for a five-year full-time service commitment in Minnesota (Minnesota Office of Higher Education). The awards are small, so most ag teachers will get more from the federal programs in our teacher forgiveness breakdown.
| Administered by | Minnesota Office of Higher Education |
| Who qualifies | Graduates of a state-approved agricultural education teacher preparation program who teach agricultural education in grades 5–12 at a Minnesota school |
| Award | Up to $3,000 a year, $15,000 total |
| Commitment | Five years of full-time service in Minnesota under a signed contract |
| Status | The 2026 deadline was extended to September 30, 2026 |
| Official source | OHE Agricultural Education Loan Repayment |
Teacher Shortage Loan Repayment Program
The legislature repealed this program, and OHE says the 2026 application cycle is the final round (Minnesota Office of Higher Education). Awards of up to $1,000 a year, and $5,000 in total, come from remaining funds, and OHE calls those funds very limited. Teachers who miss this round should look at federal Teacher Loan Forgiveness and PSLF.
| Administered by | Minnesota Office of Higher Education, under Minnesota Rules chapter 4830 |
| Who qualifies | Teachers licensed by PELSB who provide classroom instruction in a Minnesota school district and belong to a racial or ethnic group underrepresented in the state's teacher workforce; teachers in rural districts or license shortage areas may qualify if funds allow |
| Award | Up to $1,000 a year, $5,000 lifetime, paid directly to you |
| Eligible loans | Federal, state, and private education loans; Parent PLUS loans don't qualify |
| Status | Final round; the 2026 deadline was extended to September 30, 2026, and awards are paid in spring 2027 |
| Official source | OHE Teacher Shortage Loan Repayment |
Federal Forgiveness Options For Minnesota Borrowers
Federal programs reach far more Minnesota borrowers than the five state programs, and each one sets 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). Minnesota public school teachers, state and county employees, Minnesota State and University of Minnesota staff, and nonprofit hospital workers 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 Spanish-language bonus, and pays behavioral health and dental providers up to $50,000 (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). Minnesota's SLRP is the state's HRSA-supported program, and our nursing and health care forgiveness roundup covers eligibility for each federal option.
Veterinarians. Vets who don't fit the state's rural food animal program can apply to 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.
Lawyers. The Office of Higher Education administers the federal John R. Justice program for prosecutors and public defenders, which requires a three-year service commitment and paid about $3,000 a year based on federal fiscal 2022 funding (Minnesota Office of Higher Education). OHE's most recent posted cycle closed in June 2024, so most public interest attorneys should plan around PSLF.
Is Student Loan Forgiveness Taxed In Minnesota?
Minnesota generally conforms with federal law on student loan forgiveness, according to our state taxes on student loan forgiveness tracker. PSLF, Teacher Loan Forgiveness, and death and disability discharges stay tax-free at both levels.
Minnesota goes further than federal law for income-driven plans. State law lets you subtract loan amounts discharged under IBR, ICR, PAYE, or REPAYE from Minnesota taxable income (Minnesota Statutes 290.0132), even though that forgiveness became federally taxable again on January 1, 2026. The subtraction doesn't list RAP, so borrowers expecting RAP forgiveness should plan for state tax until the law changes, and our student loan tax bomb calculator can estimate the federal bill.
NHSC loan repayment awards are tax-free at the federal level (HRSA). OHE doesn't give tax advice on its awards, so ask the administering agency how your state award 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 a Minnesota 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. Minnesota savers should also review the Minnesota College Savings Plan.
Frequently Asked Questions
Does Minnesota Have A Student Loan Forgiveness Program?
Minnesota offers student loan repayment assistance programs rather than broad loan forgiveness. It runs five service-based programs for health care workers, rural veterinarians, and teachers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
What Happened To The Minnesota Teacher Shortage Loan Repayment Program?
The legislature repealed it, and the 2026 cycle, with an extended deadline of September 30, 2026, is the final round (Minnesota Office of Higher Education). The Aviation Degree Loan Repayment Program is also receiving no new funds, so teachers and pilots should look to federal forgiveness programs going forward.
How Much Can Minnesota Doctors And Dentists Get Toward Student Loans?
Primary care physicians can receive up to $132,000 and dentists up to $164,000 over four years through the Health Care Loan Forgiveness Program (Minnesota Department of Health). OB-GYNs and dentists at shortage-area clinics can also apply to the SLRP, and our doctor forgiveness roundup covers the federal options.
Can Minnesota Nurses Get Help Repaying Student Loans?
Hospital RNs can receive $6,000 a year for two years, and the Hospital RN track is open through October 6, 2026 (Minnesota Department of Health). Long-term care nurses, rural public health nurses, nurse faculty, and advanced practice nurses have their own tracks, and our nursing forgiveness roundup covers federal Nurse Corps funding.
Is Student Loan Forgiveness Taxable In Minnesota?
PSLF and Teacher Loan Forgiveness are tax-free in Minnesota, and state law lets you subtract IBR, ICR, PAYE, and REPAYE forgiveness from state income (Minnesota Statutes 290.0132). That forgiveness is still federally taxable after 2025, so use our tax bomb calculator to estimate what you'd owe.
Related Minnesota Resources
How We Sourced This Data
Program details on this page come from the administering agencies and state law: the Minnesota Department of Health Office of Rural Health and Primary Care (Health Care Loan Forgiveness track pages and the 2026–27 SLRP Program Information Notice), the Minnesota Office of Higher Education, Minnesota Statutes sections 136A.1795, 144.1501, and 290.0132, and Minnesota Rules chapter 4830. 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 Minnesota'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