Understanding State Loan Forgiveness and Conditional Grant Programs

With rising student loan debt, state policymakers have to grapple with how to create financial aid programs that will assist students in paying for college while reducing the reliance on student loans and, at the same time, propose policies that address the state’s projected workforce needs. Two financial aid programs that attempt to meet these goals are loan forgiveness and conditional grant programs, which provide debt relief to borrowers who work in specific occupations that are in high demand. This report provides a description of these two financial aid programs, the states that provide them, and what research tells us about their effectiveness.