Montana Student Loan Forgiveness Programs
Montana offers student loan repayment assistance programs for doctors, health care providers, new teachers, and nurses at two state institutions who work where the state needs them. The rural physician program carries the biggest dollars, while the teacher program reaches the most people after its 2025 overhaul. Borrowers outside those fields should start with federal forgiveness programs, which cover far more jobs.
Montana Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Quality Educator Loan Assistance Program (QELAP) | Newly hired licensed educators in Montana public schools, with impacted schools first in line | $3,000, $4,000, and $5,000 in years 1–3 ($12,000 state total), plus up to $5,000 from the district in year 4 | Each year of assistance follows a completed year of work | New Rules |
| Montana Rural Physician Incentive Program (MRPIP) | MDs and DOs practicing in rural or medically underserved areas or serving underserved populations | $150,000 over 5 years | 5 years of verified medical service | Annual Cycle |
| Montana State Loan Repayment Program (SLRP) | 16 health professions, from physicians and dentists to counselors and dietitians | $50,000 | 2 years at an eligible site | Annual Cycle |
| Montana Institutional Nursing Incentive Program (MINIP) | Registered nurses at Montana State Prison or Montana State Hospital | $3,750 a year for up to 4 years ($15,000) | Employment at either facility | Annual Cycle |
Programs That Help Repay Loans You Already Have
Montana borrowers carry roughly $33,600 in federal student debt on average, according to our Montana student loans and financial aid breakdown. These four programs send money toward that debt once you're working in a qualifying job. Many of the same employers, including public schools and nonprofit clinics, also qualify for Public Service Loan Forgiveness.
Quality Educator Loan Assistance Program (QELAP)
HB 509, passed in 2025, raised QELAP's state awards to $3,000 after the first year, $4,000 after the second, and $5,000 after the third, and a school or district can add up to $5,000 in a fourth year (MCA 20-4-504). The same law tells the Office of Public Instruction to pay educators at impacted schools first and lets leftover money go to new hires at other schools (HB 509 text). It's Montana's only teacher program, so pair it with our list of student loan forgiveness options for teachers.
The 2023 Legislature's SB 70 removed the old critical-shortage-area requirement, so a teacher's subject no longer decides eligibility (OPI report to the Board of Public Education). A new hire who collects all four years receives $17,000, which can clear half of a typical Montana balance before RAP or another repayment plan matters.
| Administered by | Montana Office of Public Instruction |
| Who qualifies | Newly hired, full-time licensed educators (or licensed professionals serving students) in a Montana public school district, education cooperative, the Montana School for the Deaf and Blind, the Montana Youth Challenge Program, or a state youth correctional facility |
| Award | $3,000 after year one, $4,000 after year two, and $5,000 after year three from the state; up to $5,000 more in year four if the school or district chooses to fund it |
| Eligible loans | An educational loan that isn't in default, with at least $1,000 still owed |
| Status | Applications for the 2025–26 school year closed April 15, 2026, with payments sent to loan servicers June 15–30, 2026; OPI hasn't posted the 2026–27 window |
| Official source | OPI Educator Recruitment And Retention |
Montana Rural Physician Incentive Program (MRPIP)
MRPIP pays up to $150,000 over five years of verified medical service to physicians who practice in rural or medically underserved areas or serve underserved populations (Montana University System). Payments start at $10,000 for the first six months and climb to $20,000 for the last six-month period, which rivals the federal awards in our breakdown of student loan forgiveness for doctors.
| Administered by | Office of the Commissioner of Higher Education (Award Montana) |
| Who qualifies | MDs and DOs with a Montana medical license and qualified medical education loans from U.S. lenders and servicers |
| Award | Up to $150,000 over five years, paid in six-month increments; part-time physicians receive proportionally smaller amounts |
| Funding | A trust funded by fees on Montana students in the WICHE, WWAMI, and ICOM medical education programs |
| Status | Annual application cycle runs May 1 through August 1 |
| Official source | MUS MRPIP page |
Montana State Loan Repayment Program (SLRP)
The Montana Department of Public Health and Human Services (DPHHS) pays up to $50,000 toward approved educational loans in exchange for a two-year service commitment at an eligible site (DPHHS). It's the widest-reaching Montana health program, covering 16 professions, and our nursing and health care forgiveness roundup covers the federal programs you can compare it against.
| Administered by | DPHHS Montana Primary Care Office |
| Who qualifies | Physicians, dentists, nurses, nurse practitioners, physician assistants, pharmacists, psychologists, clinical social workers, marriage and family therapists, licensed professional counselors, psychiatric nurse specialists, certified nurse-midwives, registered dental hygienists, dental therapists, substance use disorder counselors, and registered dietitians |
| Award | Up to $50,000 for full-time service (40 hours a week, at least 32 in direct patient care); part-time awards are available at 20 hours a week |
| Commitment | Two years at an eligible site, and the site must put up a 20% match ($10,000 on a $50,000 award) |
| Status | DPHHS says the 2026–27 cycle opens this fall and reviews applications in the order received after the cycle closes |
| Official source | DPHHS SLRP page |
Montana Institutional Nursing Incentive Program (MINIP)
MINIP reimburses registered nurses at Montana State Prison or Montana State Hospital for up to half of a $30,000 loan balance, capped at $3,750 a year for four years (MCA 20-26-1511). Both employers are state agencies, so these nurses can also work toward Public Service Loan Forgiveness.
| Administered by | Montana Board of Regents through Award Montana |
| Who qualifies | Licensed registered nurses employed at Montana State Prison or Montana State Hospital with at least $1,000 in nursing education loans |
| Award | Up to $3,750 a year for four years, paid at the end of each 12-month period and prorated for partial years; subject to available appropriations |
| Status | Annual cycle; applications open March 1 and close May 15 |
| Official source | MUS MINIP page |
Federal Forgiveness Options For Montana Borrowers
Federal programs reach far more Montana borrowers than the four state programs, and each one sets its own rules for stacking 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). Montana public school teachers, state and tribal government employees, and staff at the state's public universities 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 in its 2026 cycle, plus a $5,000 Spanish-language bonus (HRSA). Nurse Corps pays 60% of qualifying 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). Montana's SLRP runs alongside these federal programs, and our nursing and health care forgiveness roundup covers eligibility for each.
Veterinarians. Montana has no state veterinary loan repayment program, but the USDA Veterinary Medicine Loan Repayment Program 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 Montana?
Montana ties its definition of income to federal adjusted gross income and updates automatically when federal law changes, so it follows federal treatment of forgiven student loans (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 Montana 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.
Montana's agencies don't say on their program pages whether QELAP, MRPIP, SLRP, or MINIP payments count as income. Ask the administering agency how your 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 teaching and health care won't find a Montana 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. Montana savers should also review the Achieve Montana 529 plan.
Frequently Asked Questions
Does Montana Have A Student Loan Forgiveness Program?
Montana offers student loan repayment assistance programs rather than broad loan forgiveness. It runs four service-based programs for new teachers, physicians, a wide range of health care providers, and nurses at two state institutions. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
How Much Can Montana Teachers Get Toward Their Student Loans?
QELAP pays newly hired educators $12,000 over three years from the state, and a district can add $5,000 in a fourth year (MCA 20-4-504). Teachers at low-income schools can add federal Teacher Loan Forgiveness, which our teacher forgiveness breakdown explains.
Can Montana Doctors And Nurses Get Help Repaying Student Loans?
Physicians can receive up to $150,000 through MRPIP, and 16 types of providers, including nurses, can receive up to $50,000 through the state SLRP (DPHHS). Nurses at the state prison or state hospital can add MINIP, and federal Nurse Corps options appear in our nursing forgiveness roundup.
Is The Montana Rural Physician Incentive Program Still $100,000?
No, MRPIP now pays up to $150,000 over five years of service (Montana University System). Doctors weighing it against federal offers can compare the options in our breakdown of student loan forgiveness for doctors.
Is Student Loan Forgiveness Taxable In Montana?
Montana 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 Montana Resources
How We Sourced This Data
Program details on this page come from the administering agencies and state law: the Montana Office of Public Instruction and its January 2024 report to the Board of Public Education, HB 509 (2025) and Montana Code Annotated 20-4-504 and 20-26-1511, the Montana University System and Office of the Commissioner of Higher Education, and the Montana Department of Public Health and Human Services Primary Care Office. 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 Montana'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