Student Loan Forgiveness in Wisconsin

Wisconsin does offer student loan forgiveness programs. The state provides specific programs aimed at professionals, especially those in healthcare and rural areas, who make significant contributions to their communities. Programs such as the Health Professions Loan Assistance Program and the Rural Provider Loan Assistance Program are available, offering financial relief to those who qualify.

Moreover, the federal government also provides various loan forgiveness programs accessible to Wisconsin residents. So, no matter where your journey has taken you, there’s potential for relief.

Ahead, we’ll explore these programs in more detail.

Related: State Student Loan Forgiveness Programs

There’s good news for Wisconsinites carrying the weight of federal student loans. Several federal programs, brought to you by the U.S. Department of Education, offer relief based on your income or profession.

Public Service Loan Forgiveness Program

First up is the Public Service Loan Forgiveness (PSLF) Program.

You may qualify if you work full-time in a public service job (think government agencies, public schools, or nonprofits).

The goal: Make 120 qualifying student loan payments while employed full-time by the government, not-for-profit organization, or other qualifying employers, and say goodbye to your Direct Loans.

Income-Driven Repayment Forgiveness

Income-driven repayment forgives whatever balance is left at the end of the plan’s term. For federal loans made before July 1, 2026, that plan is Income-Based Repayment — 20 years if you first borrowed on or after July 1, 2014, 25 years if you borrowed earlier. PAYE and ICR run on similar terms but close on June 30, 2028. For loans made on or after July 1, 2026, the plan is the Repayment Assistance Plan, with forgiveness at 30 years. SAVE no longer exists.

The one-time IDR account adjustment that gave retroactive credit for past time in repayment closed to new consolidations on June 30, 2024 and has been processed. Nothing has replaced it. If you have FFEL or Perkins loans, consolidating into a Direct Consolidation Loan is still what makes them eligible for these plans and for PSLF — but a consolidation made on or after July 1, 2026 is itself closed out of IBR, PAYE, and ICR, leaving RAP as its only income-driven option, and whether income-driven credit earned before the consolidation carries over is unsettled. Refinancing federal loans with a private lender ends your eligibility for all of it.

One more thing worth knowing before you get close: a balance forgiven through an income-driven plan in 2026 or later counts as taxable income federally. PSLF forgiveness does not.

Teacher Loan Forgiveness Program

Are you a teacher? The Teacher Loan Forgiveness Program might be for you.

If you’ve worked full-time for five consecutive years in a low-income school or educational service agency, your federal Direct or Stafford Loans could be forgiven.

Forgiveness amounts can reach up to $17,500 for highly qualified math, science, and special education teachers and up to $5,000 for other eligible teachers.

The 2022 Broad Debt Cancellation Plan Is Over

The one-time cancellation of $10,000 to $20,000 announced in August 2022 never took effect — the Supreme Court struck it down in June 2023 — and the pandemic-era payment pause and interest freeze ended that same year. There is nothing left to wait for there. The programs above are the live federal routes, and the 2025 budget law rewrote the repayment system around them: SAVE is gone, the Repayment Assistance Plan took its place for loans made on or after July 1, 2026, and PAYE and ICR close on June 30, 2028.

Forgiveness and taxes both changed in 2026, and Wisconsin’s tax code still diverges from the federal government’s — so the federal answer will not tell you what the state does.

The American Rescue Plan Act exclusion that made most student loan cancellation federally tax-free expired at the end of 2025 and was not renewed. A balance forgiven through an income-driven plan — including the Repayment Assistance Plan — in 2026 or later is ordinary income federally in the year it is discharged. Public Service Loan Forgiveness has its own exclusion and stays tax-free, and cancellation on account of death or total and permanent disability was made permanently tax-free by the 2025 budget law.

Wisconsin’s treatment is separate from all of that, and the state has not conformed on every point. The state Department of Revenue has no mechanism for identifying who has had debt forgiven, but that is not the same as the income not being reportable. If you are approaching an income-driven forgiveness date, talk to a tax professional about the Wisconsin side before the balance is cancelled.

Wisconsin has two state-specific programs designed to help professionals in certain fields manage their student loan debt. Let’s take a closer look at these programs:

Health Professions Loan Assistance Program

This program is like a thank-you note from the state to healthcare professionals who are making a difference in their communities. You could be eligible for this program if you’re a healthcare professional working in an outpatient setting in a federally designated Health Professional Shortage Area (HPSA).

Eligible professions include certified nurse midwives, dentists, dental hygienists, nurse practitioners, physicians, physician assistants, and psychiatrists. If you qualify, you could receive up to $50,000 in student loan assistance, provided you commit to working in an eligible setting for three years.

For more information about this program, you can contact the Wisconsin Office of Rural Health.

Rural Provider Loan Assistance Program

This program is designed for primary care physicians, psychiatrists, and dentists working in an outpatient setting in a rural community in Wisconsin. The state defines rural as a city, town, or village with a population below 20,000 that is at least 15 miles from any city, town, or village with a population of at least 20,000.

You could receive up to $50,000 in education loan assistance if you qualify. But please note that eligible providers are limited to a total of two loan assistance awards during their careers.

You can contact the Wisconsin Office of Rural Health for more details and to apply for the program.