Vermont Student Loan Forgiveness Programs

Vermont offers student loan repayment assistance programs for health care workers, early childhood educators, and some lawyers who work in the state. The Educational Loan Repayment Program run by Vermont AHEC matters most, covering doctors, nurse practitioners, PAs, dentists, and nurses, and its 2027 primary care round is open now. K-12 teachers have nothing active at the state level, so they and everyone else should start with federal forgiveness programs.

Vermont Educational Loan Repayment Program: Primary Care

Vermont AHEC at the UVM Larner College of Medicine pays full-time primary care providers $10,000 to $37,500 a year in state and federal funds, and awards can reach $75,000 a year and $450,000 over six years once employer match funds are added (UVM AHEC 2027 Overview). The Vermont Department of Health lists this program as the home of the state's federally funded State Loan Repayment Program, which requires service in a Health Professional Shortage Area (Vermont Department of Health). Physicians comparing offers should also read our breakdown of student loan forgiveness for doctors.

The 2027 application deadline is October 16, 2026, and AHEC says late applications won't be considered (UVM AHEC 2027 Flyer). Governor Phil Scott's FY2027 budget proposal cut more than $1.2 million from AHEC, and the House-passed budget restored $550,800 for the loan repayment program (Valley News). Borrowers who miss the deadline can still pursue RAP or another repayment plan while they wait for the next round.

Vermont Educational Loan Repayment Program: Dentists

The dentist track pays $10,000 to $25,000 a year in state and federal funds, with a ceiling of $50,000 a year and $300,000 over six years when match funds are included (UVM AHEC 2026 Dental Overview). AHEC waived the employer match for the 2026 round and says it will return in the 2027 cycle. Dentists weighing this against private-practice income can model their payoff with our student loan calculator.

Vermont Educational Loan Repayment Program: Nurses

LPNs and RNs can receive up to $10,000 a year in state funds, up to $40,000 over four years, for one-year service commitments at Vermont hospitals, nursing homes, home health agencies, mental health and substance use providers, the health department, free clinics, and K-12 public schools (UVM AHEC 2026 Nursing Overview). Hospitals get priority for psychiatric, substance use, OR, and PACU nurses. Nurses who don't fit have other routes in our roundup of student loan forgiveness for nurses.

Early Childhood Educator Student Loan Repayment Assistance

Created under Act 45 of 2021, this program pays early childhood educators up to $4,000 a year toward student loans, and VTAEYC accepts applications year-round on a first-come, first-served basis (VTAEYC). The Vermont Department for Children and Families lists it among its workforce supports for child care staff (Vermont DCF). K-12 teachers should look at the federal options in our list of student loan forgiveness options for teachers.

VBA Loan Repayment Assistance Program

The Vermont Bar Association pays up to $5,000 a year, in two checks, to member attorneys who earn $90,000 or less and carry at least $25,000 in law school debt (Vermont Bar Association). Priority goes to lawyers practicing in underserved parts of the state or in legal fields that serve vulnerable and working people. Legal aid and government lawyers can stack this with PSLF.

Rural Health Transformation Tuition Benefit Program

The Vermont Department of Health, the Agency of Human Services, and VSAC launched this program in 2026 with federal CMS Rural Health Transformation funds, and it replaced VSAC's nursing, dental hygiene, and dentist forgivable loans, which no longer have funding (VSAC). It covers up to UVM's in-state tuition, or the tuition of a higher-cost Vermont State University program, in exchange for five years of rural Vermont health care work (VSAC Program Overview). Nursing students comparing it with other aid should also read our nursing forgiveness roundup.

Vermont Nurse Faculty Tuition Benefit Program

VSAC covers up to full tuition, capped at UVM's in-state rate, for graduate nursing students (including APRN, MSN, and DNP programs) who agree to teach full time at a Vermont nursing school for one year per year of aid (VSAC). Faculty at public colleges also work for PSLF-qualifying employers, which our graduate school forgiveness breakdown covers.

VT AHEC Scholars Medical Student Incentive Scholarship

Up to 10 UVM Larner medical students entering their third or fourth year receive $40,000 for 2026-27 if they pursue primary care and commit to practicing in rural Vermont outside Chittenden County (UVM AHEC). VSAC told lawmakers the program's grant agreement and funding end June 30, 2027 (VSAC FY27 Testimony). Compare it with a standard medical school student loan before signing.

Vermont automatically conforms to federal tax rules, so its treatment of canceled student debt follows federal law (The College Investor). The Vermont Department of Taxes says Vermont taxable income starts from federal adjusted gross income, so debt that's excluded federally stays off the Vermont return (Vermont Department of Taxes). 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 automatic-conformity states like Vermont follow that change unless they pass their own exclusion (Taxes And Student Loan Forgiveness). Borrowers expecting IBR or RAP forgiveness can estimate the bill with our student loan tax bomb calculator.

Ask AHEC, VTAEYC, or the VBA whether your Vermont award will be reported as income, and read our explainer on the 1099-C and student loan forgiveness before filing.

Does Vermont Have A Student Loan Forgiveness Program?

Vermont offers student loan repayment assistance programs rather than broad loan forgiveness. It runs eight service-based programs for doctors, nurse practitioners, PAs, dentists, nurses, early childhood educators, lawyers, and health care students. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.

What Happened To Vermont's Nursing And Dental Forgivable Loans?

VSAC says its Nursing Workforce Incentive Loan, Dental Hygienist, and State Dentist forgivable loans no longer have funding, and it moved those applicants to the new Rural Health Transformation Tuition Benefit Program (VSAC). The new program asks for five years of rural service, so read our nursing forgiveness roundup before committing.

Can Vermont Doctors And Nurses Get Help Repaying Student Loans?

Primary care physicians, APRNs, and PAs can receive up to $37,500 a year in state and federal funds through AHEC, or up to $75,000 a year with an employer match (UVM AHEC). LPNs and RNs can receive up to $40,000 over four years, and federal Nurse Corps funding is covered in our nursing forgiveness roundup.

Does Vermont Help Teachers With Student Loans?

Vermont has no active loan repayment program for K-12 teachers, and VSAC's Teacher Forgivable Loan Incentive ran on carryover money in FY2025 with no new state appropriation (VSAC Testimony). Teachers should look to federal Teacher Loan Forgiveness and PSLF, both covered in our teacher forgiveness breakdown.

Is Student Loan Forgiveness Taxable In Vermont?

Vermont 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.