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If you’re struggling with education debt, student loan forgiveness and discharge programs may sound like a dream come true. 

But depending on which forgiveness or discharge program you qualify for, you could get hit with a hefty tax bill after your balance is wiped out. Below, find out how seven different forgiveness and discharge programs work and which treat your forgiven balance as taxable income.

Arkansas residents owe more than $10.8 billion in debt, with the average Arkansas college borrower carrying a balance of a little less than $27,000 — slightly less than the national average. Hundreds of thousands of Arkansas residents are actively working to manage their student loans. 

For some, the state provides financial assistance that makes paying off their loans a faster option.  

If you’re one of the 44 million Americans with student loan debt, you probably dream of getting help repaying your loans. But, did you know that where you live and what kind of work you do could entitle you to loan forgiveness? It may sound too good to be true, but there are legitimate repayment assistance programs out there that can make your debt more manageable.

If you live in Pennsylvania, you may be eligible for one of its two state student loan forgiveness programs. There's one for healthcare professional and once for attorneys. 

If you live in Illinois, you’re in luck. You have access to five student loan forgiveness programs specifically for residents in your state—across a range of professions. They are:

• The Illinois Teachers Loan Repayment Program
• The John R. Justice Student Loan Repayment Program
• The Nurse Educator Loan Repayment Program
• The Public Interest Attorney Loan Assistance Program
• Veterans' Home Medical Providers' Loan Repayment Program

If you live in Idaho, you have access to a student loan forgiveness program just for people in your state. It’s the Idaho State Loan Repayment Program.

The Idaho State Loan Repayment Program is for medical, mental health, and dental professionals who work for nonprofits or public entities in regions the federal government designates as Health Professional Shortage Areas.

If you live in Indiana, you may qualify for a student loan forgiveness program just for people who live in your state: the Richard M. Givan Loan Repayment Assistance Program Scholarship.

This program is designed to encourage lawyers to work with nonprofits that serve low-income clients. How it works: Attorneys at these organizations are offered forgivable student loans. This removes the barrier to accepting a job that may not come with the salary necessary to pay back law school loans.