Pennsylvania Student Loan Forgiveness Programs
Pennsylvania offers student loan repayment assistance through the Primary Care Loan Repayment Program for clinicians in shortage areas, a new Nursing Shortage Assistance Program at partner hospitals, and a smaller bar program for legal aid lawyers. The state also funds students who stay in Pennsylvania through Grow PA and a $10,000 student teacher stipend, both of which you repay if you leave. Everyone else should start with federal forgiveness programs, where the bigger dollars are.
Pennsylvania Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Pennsylvania Primary Care Loan Repayment Program | Physicians, dentists, psychologists, NPs, PAs, midwives, hygienists, and behavioral health clinicians | $80,000 (physicians, dentists, psychologists) or $48,000 (others) | 2 years at a community-based site in a shortage area | Annual Cycle |
| Nursing Shortage Assistance Program | Nurses employed by participating partner hospitals | $10,000/year, up to $30,000 | 3 years at a Pennsylvania hospital | Annual Cycle |
| PA IOLTA Loan Repayment Assistance Program | Attorneys at IOLTA-funded legal aid organizations | Varies with funding | 12 months of eligible employment per loan | Open |
| Grow PA Scholarship Grant | Pennsylvania residents in in-demand associate or bachelor's programs | $5,000/year for up to 4 years | Live and work in PA 1 year per year of aid | Open |
| Grow PA Tuition Waiver | Out-of-state students at PASSHE universities | In-state tuition rate for up to 4 years | Live and work in PA 1 year per year of aid | Open |
| PA Student Teacher Support Program | Student teachers in PDE-approved preparation programs | $10,000 stipend | Teach 3 years in Pennsylvania | Annual Cycle |
| Active Volunteer Tuition And Loan Assistance | Volunteer firefighters and EMS members who are students | $1,000/year full time, $500 part time | 5 years with a volunteer company | Open |
Programs That Help Repay Loans You Already Have
Pennsylvania borrowers carry roughly $39,400 in federal student debt on average, according to our Pennsylvania student loans and financial aid breakdown. These three programs pay toward that debt once you're working in a qualifying job. Compare them against Public Service Loan Forgiveness, since community health centers and legal aid nonprofits are also PSLF employers.
Pennsylvania Primary Care Loan Repayment Program
The Pennsylvania Department of Health pays up to $80,000 to physicians, dentists, and psychologists, and up to $48,000 to other clinicians, for a two-year full-time contract in a federally designated shortage area (Pennsylvania Department of Health). The program combines state money with a federal HRSA State Loan Repayment grant, and the 2026 round closed May 4 for contracts running July 1, 2026, to June 30, 2028 (RFA 67-206). Our student loan forgiveness for doctors breakdown covers the federal programs you can compare it with.
| Administered by | Pennsylvania Department of Health, Primary Care Office |
| Who qualifies | MDs and DOs, certified registered nurse practitioners, general dentists, registered dental hygienists, public health dental hygiene practitioners, certified nurse midwives, PAs, LCSWs, LPCs, LMFTs, and psychologists |
| Award | Full time: up to $80,000 (physicians, dentists, psychologists) or $48,000 (others) for two years. Half time: $40,000 or $24,000 |
| Commitment | Two years at a community-based primary care medical, dental, or behavioral health site in a shortage area or serving at least 30% low-income patients |
| Eligible loans | Loans for tuition, reasonable educational expenses, and living expenses; loans for current study and personal lines of credit don't qualify |
| Status | 2026 applications closed May 4, 2026; practice sites can apply any time ([email protected]) |
| Official source | PA DOH Loan Repayment |
Nursing Shortage Assistance Program
Act 47 of 2025, signed November 12, 2025, created this PHEAA program to fund nursing loan repayment through partner hospitals (Pennsylvania General Assembly). Nurses can receive up to $10,000 a year and $30,000 total, the hospital must match the state grant dollar for dollar, and the payments aren't taxable under Pennsylvania's personal income tax (Act 47 text). Nurses at other hospitals should use the federal programs in our nursing student loan forgiveness list.
| Administered by | PHEAA, through grants to qualified nursing servicers that contract with partner hospitals |
| Who qualifies | Nurses employed by a partner hospital; nurses don't apply to PHEAA directly |
| Award | Up to $10,000 a year and $30,000 total in state grant money, paid after the hospital's own matching funds |
| Commitment | Three years of employment at a Pennsylvania hospital after the award; leaving early prorates the assistance |
| Status | PHEAA opens a servicer application period of up to 30 days in each year the program is funded; PHEAA hasn't published a list of partner hospitals ([email protected]) |
| Official source | PHEAA Nurse Shortage Assistance Program |
PA IOLTA Loan Repayment Assistance Program
The Pennsylvania Bar Foundation and the PA IOLTA Board run this Supreme Court-approved program, which gives attorneys at IOLTA-funded legal aid organizations a loan toward their student debt that's forgiven after 12 months of eligible work (Pennsylvania Bar Association). Award amounts depend on funding and the number of applicants, so most legal aid lawyers should pair it with PSLF.
| Administered by | Pennsylvania Bar Foundation, funded largely by pro hac vice fees directed to the PA IOLTA Board |
| Who qualifies | Attorneys employed at IOLTA-funded legal services organizations in Pennsylvania |
| Award | Varies with available funding; the loan and any interest are forgiven if you stay eligible for the full 12 months |
| Commitment | 12 months of eligible employment, with quarterly certifications |
| Status | 2027 applications open September 1 through October 15, 2026, on the WebGrants portal |
| Official source | PA IOLTA LRAP |
Service-Based Funding For Students In Training
These four PHEAA programs pay while you're in school and turn into debt if you don't meet the work or service requirement afterward. They count as forgiveness only if you complete the service, so weigh them against a private student loan with no strings attached.
Grow PA Scholarship Grant Program
Grow PA pays Pennsylvania residents up to $5,000 a year for up to four years in more than 460 associate and bachelor's programs tied to in-demand jobs, from nursing and education to computer science and agriculture (PHEAA). You sign a promissory note, then live and work in Pennsylvania in an in-demand occupation for one year per year of aid or repay the grant with interest, prorated if you complete part of the work requirement (Act 47 text). Compare that promise against a private student loan if you might leave the state.
| Administered by | Pennsylvania Higher Education Assistance Agency (PHEAA) |
| Who qualifies | Pennsylvania residents without a bachelor's degree, enrolled at least half time in an eligible program at an approved Pennsylvania school, who file the FAFSA |
| Award | Up to $5,000 a year for up to four academic years ($20,000 total) |
| Service | Live and work in Pennsylvania in an in-demand occupation for as many years as you received the grant |
| Status | 2026-27 applications accepted through January 7, 2027, first come, first served ([email protected]) |
| Official source | PHEAA Grow PA Grant |
Grow PA Tuition Waiver Program
Out-of-state students at Pennsylvania State System (PASSHE) universities can pay the in-state tuition rate for up to four years if they commit to living and working in Pennsylvania afterward (PHEAA). Act 47 of 2025 renamed it from the Grow PA Merit Scholarship, and our 529 plan for student loan repayment explainer covers another way families can cover costs.
| Administered by | PHEAA with the State System of Higher Education |
| Who qualifies | Out-of-state first-year students entering in 2026-27, or prior waiver recipients, enrolled full time in person at a PASSHE school with at least a 2.5 high school GPA |
| Award | The difference between nonresident and resident tuition for up to four years; other fees stay at the out-of-state rate |
| Service | Live and work in Pennsylvania in an in-demand occupation for as many years as you received the waiver |
| Status | 2026-27 applications due October 1, 2026 |
| Official source | PHEAA Grow PA Tuition Waiver |
PA Student Teacher Support Program
Student teachers in Pennsylvania Department of Education-approved programs can receive a $10,000 stipend, and their cooperating teacher may receive $2,500 (PHEAA). In return, you commit to teaching in a Pennsylvania school for three years or repaying the stipend, and our teacher student loan forgiveness breakdown covers the federal programs to add later.
| Administered by | PHEAA |
| Who qualifies | Students at Pennsylvania colleges in a PDE-approved educator preparation program with at least a 3.0 GPA, placed in an unpaid student teaching position at an approved Pennsylvania school |
| Award | $10,000 stipend; PHEAA says it isn't subject to Pennsylvania personal income tax or local income tax |
| Service | Three years as a teacher at a participating school district, charter school, intermediate unit, career and technical school, or nonpublic school in Pennsylvania |
| Status | The 2026-27 application deadline was September 15; placement deadlines are July 1 (fall) and December 1 (spring) |
| Official source | PHEAA Student Teacher Support Program |
Active Volunteer Tuition And Loan Assistance Program
The Legislature created this program in 2022 for students who volunteer with a Pennsylvania fire company or EMS agency, paying $1,000 a year for full-time students and $500 for part-time students (PHEAA). You sign a promissory note to stay with a volunteer organization for five years or repay the money, and our trade school loan forgiveness page covers options for certificate students.
| Administered by | PHEAA |
| Who qualifies | Pennsylvania residents enrolled in a degree, certificate, graduate, or career training program at an approved Pennsylvania school who have been active volunteers in good standing for at least a year |
| Award | $1,000 a year (full time) or $500 a year (less than full time), first come, first served until funds run out |
| Service | Five-year commitment to a volunteer fire company or EMS agency |
| Status | 2026-27 applications and promissory notes due May 1, 2027 |
| Official source | PHEAA Active Volunteer Program |
Federal Forgiveness Options For Pennsylvania Borrowers
Federal programs reach far more Pennsylvania borrowers than the seven 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). Pennsylvania public school teachers, state and county employees, and public university staff 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, or $80,000 with the Spanish-language bonus (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). Pennsylvania's Primary Care Loan Repayment Program is the state's HRSA-backed SLRP, and our nursing and health care forgiveness roundup covers eligibility for the federal programs.
Veterinarians. Pennsylvania 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 Pennsylvania?
Pennsylvania gives tax-free status to student loans forgiven through a state or federal program that requires work in a specified profession for a period of time (The College Investor). That language fits PSLF and Teacher Loan Forgiveness, which both require years of work in a qualifying job.
Act 47 of 2025 also says Nursing Shortage Assistance payments aren't taxable income under Pennsylvania's personal income tax (Act 47 text). Federal tax is a separate question, and income-driven plan forgiveness became federally taxable again on January 1, 2026, which our taxes and student loan forgiveness explainer covers.
Our state tax review doesn't address how Pennsylvania treats IBR or RAP forgiveness, which isn't tied to a profession. Borrowers expecting that kind of forgiveness should confirm with the Pennsylvania Department of Revenue or a tax preparer, and can estimate the federal bill with our student loan tax bomb calculator.
If Your Job Isn't Covered
Borrowers outside health care, legal aid, and teaching won't find a Pennsylvania repayment 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. Pennsylvania savers should also review the Pennsylvania 529 Investment Plan and Guaranteed Savings Plan.
Frequently Asked Questions
Does Pennsylvania Have A Student Loan Forgiveness Program?
Pennsylvania offers student loan repayment assistance programs rather than broad loan forgiveness. It runs seven service-based programs for health care providers, hospital nurses, legal aid lawyers, student teachers, volunteer first responders, and students in in-demand fields. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
What Happened To The PA Student Loan Relief For Nurses Program?
PHEAA says funding for the Student Loan Relief for Nurses program ran out on August 20, 2026, and it can't make new awards (PHEAA). It paid up to $2,500 a year for up to three years to nurses who worked through the pandemic, and nurses now have the Nursing Shortage Assistance Program and the federal programs in our nursing forgiveness roundup.
Does Pennsylvania Have Student Loan Forgiveness For Teachers?
Pennsylvania has no loan repayment program for working teachers, but student teachers can get a $10,000 stipend if they teach in the state for three years (PHEAA). Working teachers should look at federal Teacher Loan Forgiveness and PSLF in our teacher forgiveness breakdown.
Can Pennsylvania Doctors And Nurses Get Help Repaying Student Loans?
Physicians, dentists, and psychologists at eligible shortage-area sites can get up to $80,000 for two years through the Primary Care Loan Repayment Program, and NPs and PAs up to $48,000 (Pennsylvania Department of Health). Hospital nurses may qualify for up to $30,000 through a partner hospital, and our doctor loan forgiveness roundup covers the federal options.
Is Student Loan Forgiveness Taxable In Pennsylvania?
Pennsylvania doesn't tax student loans forgiven through state or federal programs tied to working in a profession, such as PSLF and Teacher Loan Forgiveness (The College Investor). Income-driven plan forgiveness is federally taxable after 2025, so use our tax bomb calculator to estimate what you'd owe.
Related Pennsylvania Resources
How We Sourced This Data
Program details on this page come from the administering agencies and state law: the Pennsylvania Department of Health Primary Care Office and RFA 67-206, the Pennsylvania Higher Education Assistance Agency, the Pennsylvania Bar Foundation, and Act 47 of 2025 (SB 315) as published by the Pennsylvania General Assembly. 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 Pennsylvania'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