Tennessee Student Loan Forgiveness Programs

Tennessee offers student loan repayment assistance programs through the Department of Health for primary care providers, dentists, and rural eye doctors, plus state-funded help for future nurse educators and teachers who commit to working in Tennessee. The programs are almost all health-focused, so most borrowers will get more from federal options. If your job isn't in health care, start with federal forgiveness programs.

Tennessee Student Loan Repayment Program (TSLRP)

TDH describes TSLRP as state-funded incentives for health care providers who work at approved locations (Tennessee Department of Health). HRSA lists the TDH State Office of Rural Health as Tennessee's State Loan Repayment Program grantee, with a federal award of $2,264,970 (HRSA). TDH doesn't post award amounts or deadlines online, so contact the office directly, and compare it with the federal awards in our breakdown of student loan forgiveness for doctors.

Optometry And Ophthalmology Loan Repayment Program

This TDH program pays up to $50,000 in educational loan repayment, at up to $25,000 a year, to optometrists and ophthalmologists who commit to at least two years in one of Tennessee's rural counties (Tennessee Department of Health). TDH's flyer calls it the Seeds for Seeing Tennessee Eyecare Access Grant, and all 89 rural counties qualify while metro counties don't. Eye doctors with private loans should also check our list of private student loan forgiveness options.

Dental Loan Repayment Program

TDH's Dental Loan Repayment Program provides educational loan repayment to dentists in exchange for service in federally designated Health Professional Shortage Areas (Tennessee Department of Health). TDH's Healthy Smiles Initiative plan lists payments of $100,000 a year for three years for dentists, $25,000 a year for two years for hygienists, and $10,000 a year for two years for dental assistants, starting with health department dental clinics (TDH Healthy Smiles Initiative). Confirm the current terms with TDH before you sign a job offer, and read our list of student loan forgiveness programs for federal dental options.

Graduate Nursing Loan Forgiveness Program

The Tennessee Student Assistance Corporation (TSAC) lends up to $7,000 a year to full-time graduate nursing students, or $3,500 a year part time, for up to four years of full-time study (TSAC rules, Chapter 1640-01-03). Each year of full-time work as a teacher or administrator in a Tennessee nursing education program cancels 25% of the amount borrowed plus interest. Nurses who aren't headed into teaching have other routes in our roundup of student loan forgiveness for nurses.

Tennessee Future Teacher Scholarship

The Future Teacher Scholarship pays $1,750 a semester, up to $3,500 a year, to juniors, seniors, and post-baccalaureate students in an approved educator preparation program (College for TN). Recipients must teach at least two consecutive years in a Tennessee public school in a targeted setting, meaning a distressed or at-risk county or a critical shortage subject. Our list of student loan forgiveness options for teachers covers the federal programs they can add later.

Tennessee has no personal income tax on wages, 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.

Ask TDH or TSAC how your award will be reported for federal taxes before you file. Our explainer on the 1099-C and student loan forgiveness covers what to expect.

Does Tennessee Have A Student Loan Forgiveness Program?

Tennessee offers student loan repayment assistance programs rather than broad loan forgiveness. It runs five service-based programs for health care providers, dentists, eye doctors, nurse educators, and future teachers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.

Why Did This Page Used To Say Tennessee Had No Programs?

Our 2023 version missed the Department of Health's loan repayment programs and TSAC's service-based awards, including TDH's rural eye care program (Tennessee Department of Health). We now verify each program against the agency that runs it, which our editorial standards explain.

Can Tennessee Teachers Get Their Student Loans Forgiven?

Tennessee helps future teachers through the $3,500-a-year Future Teacher Scholarship, but it has no program for teachers' existing loans (College for TN). Working teachers should look at federal Teacher Loan Forgiveness and PSLF, covered in our teacher forgiveness breakdown.

Can Tennessee Nurses Get Help Repaying Student Loans?

RNs who earn a graduate degree and teach nursing in Tennessee can have up to $28,000 in TSAC loans forgiven over four years of service (TSAC rules). Bedside nurses should look at federal Nurse Corps and PSLF, covered in our nursing forgiveness roundup.

Is Student Loan Forgiveness Taxable In Tennessee?

No, because Tennessee doesn't tax wage income (The College Investor). Income-driven plan forgiveness is federally taxable after 2025, so use our tax bomb calculator to estimate the federal bill.