Paying for a master's degree can be tough. Luckily, social workers may be eligible for student loan forgiveness.
While requirements for social workers vary across state lines, many employers now strongly prefer clinical social workers who hold a master's degree. However, earning a master's in social work (MSW) can be expensive. After spending 2-3 years earning your MSW, you may graduate with a substantial amount of student loan debt, even if you graduated from an online program.
Clinical social workers typically do not earn as much as other professions at this education level, which can make paying back loans difficult. Fortunately, there are resources for social workers struggling with student loan debt, including loan forgiveness programs.
Social workers provide vital services to underserved and low-income populations, and federal loan forgiveness programs encourage people to join the profession and help meet the overwhelming public need for their work. Read on for our primer on the loan forgiveness programs available to MSW students.
Loan Forgiveness Programs
Federal Student Loan Repayment Program $10k-$60k
Participating agencies can help pay off a chunk of your debt — up to $60,000. In exchange, you may need to work at the agency for at least three years. Loans that qualify for this type of repayment are federally insured or guaranteed loans, as authorized by the Higher Education Act of 1965 and the Public Health Service Act. Payments are made annually.
Income-Based Repayment (IBR) Varies
IBR are a type of income-driven repayment plan tailored to low-income borrowers, including Revised Pay-As-You-Earn Repayment Plans, Pay-As-You-Earn Repayment Plans, and Income-Contingent Repayment Plans. Income-driven repayment calculates monthly payments based on income and family size. In an IBR plan, you generally pay 10% of your discretionary monthly income.
National Health Service Corps Loan Repayment Program (NHSC) $15k-$50k
Licensed social workers employed at an approved facility or in a high-need area qualify for loan forgiveness from the NHSC, a program that awards funds to health service workers. The program awards up to $50,000 for every two-year, full-time work commitment in an eligible setting.
Public Service Loan Forgiveness (PSLF) Varies
Social workers can qualify to receive loan forgiveness from the PSLF program after making 120 monthly payments on their federal loans while working full time for an employer from local, state, federal, or tribal government — or certain tax-exempt nonprofits. The program forgives debt from outstanding direct loans and most other federal loans.
State Loan Repayment Program Varies
States offer their own social work loan forgiveness programs, which are operated through the NHSC. Eligibility, length of work commitment, practice sites, and amount awarded vary across state lines. For example, Oregon offers loan forgiveness awards of up to $35,000 for social workers who work full-time at an approved employer for at least two years.
Frequently Asked Questions
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