Delaney then proceeded to share a ray of hope with other gloomy borrowers: “Don’t rely on the federal government—seek assistance from your state.”
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Turning to state-based forgiveness
Delaney’s lightbulb moment was when he stumbled upon a Tennessee state program geared toward teachers in underserved areas. After five years of service in a qualifying district, $20,000 of his loans could be forgiven. “It was a game-changer,” he stated. “I didn’t even know this existed until a coworker told me.”
Increasingly, borrowers are realizing that state programs, many of which target healthcare workers, teachers, and public servants, can offer real and accessible relief. In contrast to the federal programs, which all too often fall prey to politics and lawsuits, state programs are already in existence and actively aiding people in getting rid of their debt.
Federal chaos and loss of faith
Delaney’s advice comes at a time of plummeting trust in federal management of financial aid. Reports that emerge paint a picture of gloom: missed deadlines, confusing eligibility criteria, and a lack of coordinated communication from the Department of Education have left millions of borrowers feeling abandoned.
The pause on student loan payments ended in 2023, and ever since, many have struggled to get answers regarding repayment, forgiveness, and errors in servicing. “It’s too unpredictable,” said Delaney. “I had to take control of my situation.”
Even more states provide relief
Now, more states have introduced targeted student loan forgiveness. Some examples are New York’s Get On Your Feet Loan Forgiveness Program, Maryland’s SmartBuy Home Buyer Program, and Minnesota’s Teacher Shortage Loan Forgiveness Program.
Most of these programs require recipients to live or work within certain areas, often in highly needy fields. Although the amounts differ, many of them pay large sums—$20,000 or more in relief—that would make a significant dent in high balances.
Read now: Goodbye to student loan forgiveness: here’s how Trump’s new approach will affect credit scores.
To become the borrowers’ eventual action
Delaney now addresses students about debt management and how to use underutilized resources. “Too many people are sitting around waiting for a miracle,” he said. “Start by checking what your state offers. It may be the very lifeline you’ve been waiting for”.
In the meantime, amid the controversies about student loan forgiveness in Congress, people are gradually transforming their lives through programs in various states. In Delaney’s view, the only hope left is not Capitol Hill but his backyard.
“Do your homework,” he offers. “There’s help out there; you just have to find it.”
