First off, no matter where you live or what your profession is, anyone can consolidate their federal student loans, get loan forgiveness and qualify for a debt repayment plan (see step-by-step instructions here). On the other hand, NOT everyone is eligible for the following Texas student loan relief & loan forgiveness options that we are about to reveal.
In Texas, there is a shortage of police officers, teachers, and doctors. To help recruit people into these professions, the following new Texas debt relief options have been introduced to the state. These first two options have not yet been passed, but are on the brink of getting approved.
Kelly Hancock’s Student Loan Debt Repayment Plan for Police Officers
The crime rate in Texas is 4.95 (incidents per 1,000 people), which is higher than the national average. What’s the solution? More police officers navigating the streets would surely help.
In an attempt to recruit more police officers in Texas, legislation is discussing two new student loan debt repayment plans.
The first plan, introduced by State Senator Kelly Hancock, would offer up to $30,000 in student loan debt relief. Hancock’s plan requires four years of experience as a police officer and locks new police officers into four additional years of serving as a police officer after receiving the benefit.
Lynn Stucky’s Student Loan Debt Repayment for Police Officers
The second student loan relief plan was introduced by Lynn Stucky, a Republican from Denton, offering $20,000 in student loan debt forgiveness. Stucky’s plan only requires one year of experience and does not require any additional years of serving as a police officer.
Loan forgiveness means that a portion of a person’s student loan balances will get forgiven, making it easier for police officers to get out of debt.
The cost of these student loan relief plans
For the state of Texas, both plans could cost around $12 million (each), within the 1st two years of getting launched, creating additional taxes which many Texans won’t be able to afford.
Doctor’s student loan debt relief
Texas residents who agree to practice in any of the following areas could receive up to $160,000 in student loan debt relief.
- Family medicine
- Internal medicine
- Obstetrics and Gynecology
To learn more about this type of debt relief visit HHLoans.com.
Teach for Texas Loan Repayment Assistance Program
This next debt relief option is not referring to the Public Service Loan Forgiveness Plan (PSLF), which has been around for many years now. The PSLF offers anyone working in a Public Service job with the ability to get their student loans forgiven after only 120-payments. PSLF is an excellent option for students, police officers and anyone with a public service job.
Having said that, if you plan to use the PSLF – you can’t use the Teach for Texas Loan Repayment Assistance option.
The Teach for Texas Loan Repayment Assistance Program offers teachers’ help with paying student loan debt (for up to five years).
Teachers in Texas can receive up to $2,500 to put towards paying off student loan debt.
Keep in mind, no matter what plan you use for student loan relief, these plans can have potential tax consequences. If a portion of your debt is forgiven, the savings could appear as income. To avoid having to pay extra taxes you can use a Form#982, Reduction of Tax Attributes Due to Discharge of Indebtedness.
Additional Debt Relief Options for Texas Consumers
- Need help with medical bills? Here are your medical debt relief options.
- Searching for financial freedom? Check out these 16 tips to help you achieve financial freedom.
- Owe Above $5,000 in Credit Card Debt? Here are 2019’s best credit card debt relief options