South Dakota Student Loan Forgiveness Programs

South Dakota offers large student loan repayment assistance awards to professionals who move to small towns. The Recruitment Assistance Program is worth $258,702 to a doctor or dentist who commits three years to a small town, though open slots are scarce, and lawyers get a similar deal through the Rural Attorney Recruitment Program. Students can avoid debt through service scholarships like Dakota Corps and Build Dakota, and everyone else should start with federal forgiveness programs.

Recruitment Assistance Program (RAP)

Starting July 1, 2026, RAP pays $258,702 to physicians and dentists and $71,933.20 to PAs, nurse practitioners, nurse midwives, and nurse anesthetists who practice full time for three consecutive years in an eligible rural community (South Dakota Department of Health). The 2026 Legislature passed HB 1043, which appropriated $978,294 to reimburse four family physicians, two PAs, and six NPs who completed the program, plus $370,000 for other eligible professionals (HB 1043). A three-year award this size can wipe out most medical school debt, which our breakdown of student loan forgiveness for doctors puts in context.

Rural Healthcare Facility Recruitment Assistance Program

This program pays $10,000 to nurses, pharmacists, therapists, paramedics, dental hygienists, and other health professionals who complete three years of full-time work at a facility in a community of 10,000 or fewer (South Dakota Department of Health). The employer applies on your behalf, and each facility can enroll up to three participants. Nurses can compare it with federal options in our roundup of student loan forgiveness for nurses.

Rural Attorney Recruitment Program (RARP)

RARP pays five annual incentive payments of $12,513.60, equal to 90% of a year's resident tuition and fees at law school, for a total of $62,568 over five years (South Dakota Unified Judicial System). As of June 30, 2025, 36 attorneys had participated and 19 had completed the program. Lawyers who'd rather work for a government office can pursue PSLF instead, or alongside it if the rural job qualifies.

Dakota Corps Scholarship

Dakota Corps covers tuition and generally applicable fees for 16 credit hours a semester, with the intent that recipients pay nothing toward tuition (South Dakota Board of Regents). Recipients must work in a critical-need occupation in South Dakota for one year longer than they receive the award, so a four-year scholarship means five years of service (DRGNews). Families can compare the value against borrowing with our student loan calculator.

Critical Teaching Needs Scholarship

This scholarship covers maximum tuition and fees for 30 undergraduate credit hours at a South Dakota public university, or the equivalent at a private school, and third-year recipients can renew it for one more year (South Dakota Board of Regents). For 2026-27, every K-12 teaching position counts as a critical need. Recipients must teach in South Dakota for five years after graduating, and our list of student loan forgiveness options for teachers covers the federal programs they can add later.

Build Dakota Scholarship

Build Dakota covers tuition, fees, books, equipment, technology, and tools for full-time students in high-need programs at South Dakota's technical colleges (Build Dakota). Graduates must work full time in their field in South Dakota for at least three years, and the scholarship converts to 4% interest-bearing debt, prorated, if they don't. Students in skilled trades can read our trade school loan forgiveness breakdown for other options.

South Dakota has no personal income tax, so student loan forgiveness isn't taxed at the state level (The College Investor). That covers PSLF, Teacher Loan Forgiveness, and income-driven plan forgiveness.

Federal taxes still apply. 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), and our student loan tax bomb calculator estimates what you'd owe.

RAP, RHFRAP, and RARP pay incentives to you rather than to a loan servicer, so ask the administering agency how the payment will be reported for federal taxes. Our explainer on the 1099-C and student loan forgiveness covers what to expect at filing time.

Does South Dakota Have A Student Loan Forgiveness Program?

South Dakota offers student loan repayment assistance programs rather than broad loan forgiveness. It runs three rural recruitment incentives for health professionals and attorneys plus three service scholarships for students. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.

How Much Can Rural Doctors And Dentists Get In South Dakota?

RAP pays $258,702 to physicians and dentists for three years in a qualifying community, but DOH's page showed no open physician slots and one dentist slot as of its last update (South Dakota Department of Health). Providers who miss out can apply for federal NHSC loan repayment, covered in our doctor forgiveness breakdown.

Is The Delta Dental Loan Repayment Program Still On This Page?

We removed it because Delta Dental of South Dakota runs it, not a state agency. Dentists should look at RAP and the federal programs in our full list of forgiveness programs.

Can South Dakota Teachers Get Help With Student Loans?

The state helps future teachers before they graduate through the Critical Teaching Needs and Dakota Corps scholarships, which require five years of South Dakota service in most cases (South Dakota Board of Regents). Teachers with existing loans rely on federal Teacher Loan Forgiveness and PSLF, covered in our teacher forgiveness breakdown.

Is Student Loan Forgiveness Taxable In South Dakota?

No, because South Dakota has no personal income tax (The College Investor). Income-driven plan forgiveness is federally taxable after 2025, so use our tax bomb calculator to estimate the federal bill.