When it comes to higher education, Native Americans face obstacles. The Postsecondary National Policy Institute says that postsecondary attendance among Native American students has been in decline since 2010. According to the Education Department, “American Indians and Alaska Natives have a much lower rate of college completion than the population as a whole.”
The soaring cost of college could have something to do with this: The average annual cost of tuition at a public 4-year college is 40 times higher than in 1963. This has resulted in nearly 43 million Americans owing more than $1.6 trillion in federal student loans (the balance is even higher if you include private loans).
The good news is, there may be opportunities for student loan forgiveness. Here’s a look at student loan forgiveness programs for Native American students that could offer financial relief.
Table of Contents
Key Points
• Native American students face financial barriers in higher education, but some states and schools offer aid.
• Indian Health Services Loan Repayment offers up to $25K yearly for health care professionals in Native communities.
• PSLF and Teacher Loan Forgiveness provide debt relief for public service and education careers.
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Picking a Career With Loan Forgiveness
One very important resource: The Bureau of Indian Education provides a list of scholarships and grants available to Native American students, such as the American Indian College Fund.
Many states offer financial aid to Native American students attending college. Some individual colleges and state schools also offer free tuition and room and board to Native American students. For instance, Native American students who are Montana residents can qualify for a tuition waiver at Montana State University.
Keeping a career in mind when pursuing an education can make a big difference in financial aid and forgiveness options.
💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi. (You may pay more interest over the life of the loan if you refinance with an extended term. Refinancing federal loans also means losing access to federal forgiveness programs and other benefits.)
Health Services
One of the programs that gives priority to Native Americans is the Indian Health Services Loan Repayment Program. This program, part of the U.S. Department of Health and Human Services, provides up to $50,000 for health professionals to help repay eligible education loans.
In exchange, health professionals agree to an initial two-year service commitment practicing in areas that serve American Indian and Alaska Native communities.
Priority enrollment in this program is given to American Indians and Alaska Natives. Professions across the health care spectrum, including behavioral health, dentistry, and dietetics, are available.
The organization says that available opportunities are based on the greatest staffing needs in Native American health facilities. Participants are also eligible to extend their contracts annually until their qualifying student debt is paid.
Public Service Loan Forgiveness
This program, offered by the Education Department, is open to all qualified students, not just Native Americans. The careers that may qualify for Public Student Loan Forgiveness Program (PSLF) range from forestry and natural resources to teaching and law enforcement.
To receive loan forgiveness for work in public service, applicants must work full-time for a qualifying government agency or certain nonprofits. After 120 on-time, qualifying payments in an income-driven repayment (IDR) plan, the remainder of the student debt can be forgiven.
The Department of Federal Student Aid offers a PSLF Help Tool to start work on the Employment Certification Form to apply.
Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the program. Loans that may be eligible to be forgiven under PSLF include any nondefaulted loans that you received under the Direct Loan Program from the government. Private loans are not eligible for any federal forgiveness plans.
Teacher Loan Forgiveness Program
For students interested in pursuing a career in teaching, the Education Department’s Teacher Loan Forgiveness Program is key. If you teach full-time for five years straight in a low-income school or educational service agency, you might be eligible for up to $17,500 for certain subject areas.
Even if you don’t teach math, science, or special education, you could still receive up to $5,000 in loan forgiveness if you are a qualified full-time elementary or secondary education teacher.
This might be another option for Native American students looking for student loan debt forgiveness by giving back to a community in need.
To qualify, the school or educational agency must be listed in the directory, published by the Education Department, for the years you were/are a teacher.
💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to financial advisors, networking events, and more — at no extra cost.
Lowering Your Student Loan Payments
While student loan forgiveness is often a great solution for debt relief, sometimes you might not qualify for career-based programs. One solution is income-driven repayment (IDR) plans for federal student loans.
You currently have three options for income-driven repayment: PAYE, Income-Contingent Repayment (ICR), and Income-Based Repayment (IBR). These plans adjust your monthly payments based on your discretionary income.
The IBR plan can also lead to loan forgiveness after 20 or 25 years of payments. In the coming years, PAYE and ICR will be eliminated, and the Education Department will introduce a new income-driven plan called the Repayment Assistance Plan (RAP). RAP may forgive your remaining balance after 30 years of repayment.
Recommended: Student Loan Forgiveness: Programs for Relief and Mass Forgiveness
Refinancing Student Loans
Refinancing your student loans may lead to savings. When you refinance, you replace your loans with a new loan that ideally has a better interest rate. You can also choose new terms, as well as combine multiple loans into one to simplify repayment.
There’s a major caveat to be aware of, though: Refinancing federal loans means losing eligibility for federal forgiveness programs, like PSLF and Teacher Loan Forgiveness. You also won’t be able to access income-driven repayment or other federal programs.
If that’s not an issue -– or you’re only refinancing private loans -– refinancing could be a strategic financial move. (Note that you may pay more interest over the life of the loan if you refinance with an extended term.)
The Takeaway
Native Americans seeking student loan forgiveness can find several options, including the Indian Health Services Loan Repayment Program, which prioritizes Native Americans in health care roles and offers up to $50,000 for eligible education loans. Other federal programs like Public Service Loan Forgiveness (PSLF) and the Teacher Loan Forgiveness Program are also available for those working in public service or teaching in low-income areas, potentially offering significant debt relief. Refinancing is also an option to lower your monthly student loan payments.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
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