Washington state student loan forgiveness programs fall into three main buckets: the Washington Health Corps for healthcare and behavioral health providers, the Educator Workforce Program for teachers, and federal Public Service Loan Forgiveness for people working in government or nonprofit jobs. The state-funded tracks pay off existing loans (or forgive scholarships) in exchange for a service commitment in a shortage area. The federal track wipes out your remaining balance after ten years of qualifying public service work, and Washington law now requires public employers to help you access it.
Washington Health Corps for Healthcare Providers
The Washington Health Corps is the state’s biggest loan repayment program. It runs through the Washington Student Achievement Council (WSAC) under RCW 28B.115 and comes in three tracks.
The State Health Program and the Behavioral Health Program each pay up to $75,000 toward your student loans, capped at your actual outstanding balance. In return you work full-time (40 hours a week) for three years at a preapproved site in a designated shortage area. Part-time service of at least 24 hours a week stretches the commitment proportionally, up to five years.1WSAC. Washington Health Corps Reference Guide The Behavioral Health track prioritizes mental health and substance use treatment providers; the State Health track covers a broader range of clinical specialties.
The Federal Health Program combines National Health Service Corps dollars with state matching funds and pays up to $70,000 for a minimum two-year full-time commitment. Because federal money is involved, you must meet both federal and state eligibility rules.2HRSA. Determine State Loan Repayment Program Eligibility and Application Requirements
Many licensed professions qualify, including physicians, nurses, advanced practice providers, dentists, and behavioral health clinicians. WSAC maintains the current eligible-professions list.3WSAC. Washington Health Corps
Here’s the catch most applicants trip over. You can’t apply on your own. Your worksite has to be preapproved by WSAC first, which means it must sit in a recognized Health Professional Shortage Area and meet staffing criteria. Preapproved status lasts three years. If your clinic hasn’t gone through that process, start the conversation with your employer early — the provider application window is narrow. Payments go directly to your loan servicer. Leave the job early and you may have to repay what the state already paid, with interest.4Washington State Legislature. Washington Code 28B.115.090 – Loan Repayment and Scholarship Awards
Educator Workforce Program for Teachers
Washington’s teacher-focused programs, authorized under RCW 28B.102, work differently from Health Corps. Most are conditional scholarships: the state pays your education costs up front, and the award is forgiven once you complete your teaching service. If you don’t finish the obligation, the scholarship converts into a loan with interest, and the state can garnish wages to collect.5Washington State Legislature. Washington State Code 28B.102 – Educator Workforce Program
The sub-programs cover different points in a teacher’s path:
- Teacher Shortage Conditional Scholarship — up to $8,000 per year for up to four years toward a Washington Residency Teacher Certificate.
- Alternative Routes Conditional Scholarship — up to $8,000 per year for up to two years for career changers pursuing alternative certification.
- Pipeline for Paraeducators — up to $4,000 per academic year for paraeducators moving toward a full credential.
- Educator Retooling — up to $3,000 per endorsement for current teachers adding a certification in a shortage subject.
All of these run through WSAC and require a valid Washington teaching certificate or enrollment in a qualifying program.6WSAC. Teacher Programs
Service length depends on where you teach. Work in a designated shortage area and you owe one full school year per year of scholarship. Work outside a shortage area and the obligation doubles to two school years per scholarship year.5Washington State Legislature. Washington State Code 28B.102 – Educator Workforce Program
The Professional Educator Standards Board publishes the shortage list each year. For 2025–26 the biggest shortages, in descending order, are elementary education, special education, early childhood education, CTE-STEM, CTE-Health Science, science, reading, school counseling, ELL/bilingual education, and computer science.7Professional Educator Standards Board. Educator Shortage Teaching in one of these subjects shortens your service obligation and strengthens your application.
Public Service Loan Forgiveness for Washington State and Nonprofit Workers
If you work for a government agency or a 501(c)(3) nonprofit in Washington, federal Public Service Loan Forgiveness (PSLF) may matter more to you than any state program. PSLF forgives your remaining Direct Loan balance after 120 qualifying monthly payments (about ten years) while you’re employed full-time by a qualifying public service employer. All federal, state, local, and tribal government agencies qualify, along with 501(c)(3) nonprofits and some other tax-exempt organizations. For-profit employers and for-profit government contractors do not.8WSAC. Public Service Loan Forgiveness (PSLF)
Washington passed legislation in 2022 (codified at RCW 28B.77.009, RCW 41.04.045, and related sections) requiring state agencies and public colleges to actively help their employees access PSLF. If your employer is a Washington state agency or a public institution of higher education, it is supposed to give you program information and help you complete the certification paperwork. Part-time faculty at public colleges get a specific boost: under RCW 41.04.055, HR must multiply in-class teaching hours by 3.35 when calculating total hours worked on the PSLF employment certification form. That multiplier reflects prep and grading time, and it can push adjuncts over the full-time threshold the program requires.8WSAC. Public Service Loan Forgiveness (PSLF)
PSLF stacks with the state programs. If you work at a qualifying nonprofit clinic and receive Washington Health Corps repayment, those employment months also count toward your 120 PSLF payments on any remaining loan balance.
Will You Owe Taxes on Forgiven Amounts?
For almost everyone in these programs, no. Loan repayment received through a qualifying state program designed to encourage service in underserved areas is excluded from federal gross income under the Internal Revenue Code, which specifically exempts payments received under state loan repayment programs described in Section 338I of the Public Health Service Act — the Washington Health Corps falls in that category.9Office of the Law Revision Counsel. 26 USC 108 – Income From Discharge of Indebtedness Amounts forgiven through PSLF are also excluded from gross income. The IRS lists both as exceptions to the usual rule that canceled debt is taxable.10IRS. Topic No. 431, Canceled Debt – Is It Taxable or Not? Washington has no state income tax, so there is no state-level issue either.
Other WSAC Programs Worth Knowing About
WSAC also runs several programs that reduce borrowing up front or support specific populations rather than repaying loans after the fact:
- Behavioral Health Conditional Scholarship — for first-year graduate students in Master of Social Work, Mental Health Counseling, and Marriage and Family Therapy programs.
- Nurse Educator Loan Repayment — for nurses with advanced degrees who teach in nursing programs.
- National Guard Grant — covers undergraduate tuition for Washington National Guard members.
- Passport to Careers — supports former foster youth and unaccompanied homeless youth with college, apprenticeship, and pre-apprenticeship costs.
Eligibility rules and application timelines for each are posted on the WSAC site.3WSAC. Washington Health Corps
How to Apply
Every program routes through WSAC, but the timing and sequence differ.
For the Washington Health Corps 2026 cycle, the provider application opened January 5 and closes at 5:00 p.m. on March 6, 2026. The process has three steps: your site applies for preapproval, you submit your provider application during the open window, and your site then verifies your information and adds facility-level details.3WSAC. Washington Health Corps You must already be working at the preapproved site or have a signed contract to start by July 1 of the award year. Pull together your current loan balances, servicer contact information, professional license details, and (for healthcare providers) your National Provider Identifier before you begin.
Educator conditional scholarships have their own cycles that vary by sub-program; check the WSAC teacher programs page for current deadlines. You’ll need a valid Washington teaching certificate or enrollment in a qualifying certification program, documentation of your school placement, and confirmation that your subject area is on the current shortage list.7Professional Educator Standards Board. Educator Shortage
If you’re selected, you sign a contract with WSAC that fixes your service dates, the total award, and the consequences of leaving early. Health Corps payments go to your loan servicer in installments tied to verified service, not to your bank account. Educator conditional scholarships are forgiven at the end of your service term. Keep copies of every employment verification and loan statement; if a question comes up years later about whether you completed the obligation, those records settle it.