Paying for Your HVAC Program – Loan Forgiveness & Repayment Options

Becoming an HVAC technician is a lucrative route for those interested in this exciting field. As technology advances, HVAC technicians continuously learn and develop their skillset to keep up with the industry’s ever-changing demands; however, how do they afford training?

Although one will need post-secondary certification or EPA accreditation before entering the profession, several options are available for financing programs that provide aspiring HVAC techs with ample opportunities to launch successful careers.

Earning an HVAC certificate or degree may seem daunting due to the time and financial commitment involved; however, accessing loan repayment options can help make it more feasible. The Bureau of Labor Statistics (BLS) suggests that programs typically take six months to two years to complete, with estimated costs ranging from $1,500 to 15,000 dollars. Fortunately, various forgiveness and repayment plans are available post-graduation, making investing in HVAC training much less intimidating.

The office of Federal Student Aid (FSA) offers income-based repayment plans and loan forgiveness programs. For example, the PSLF Program forgives the remaining balance on eligible loans after making 120 qualifying monthly payments to those working full-time in an approved public service job. Other resources include state education grants, employer reimbursement programs, military assistance, and local or tribal assistance.

In addition to loan forgiveness and repayment options, prospective HVAC students can consider funding alternatives, such as scholarships and grants. In some cases, companies will pay HVAC school tuition for an employee’s commitment to work a specific number of years. This article will discuss these and other options for funding HVAC school training programs.

Careers in HVAC are growing. According to the BLS (2022), employment of HVAC mechanics and installers is projected to grow 5 percent from 2021 to 2031, about as fast as the average for all occupations. This growth is estimated to create 20,200 new jobs in the coming decade. HVAC technician job prospects should be excellent for those with postsecondary education and heating, air conditioning, and refrigeration training.

Read on to learn more about options for paying for HVAC programs, including loan forgiveness and repayment options.

What Are Loan Forgiveness & Repayment Programs?

Loan forgiveness and repayment programs are essential for HVAC technicians struggling with school loan repayments. Offered by the federal government or non-profit organizations, such programs typically provide income-driven repayment plans for forgivable loans. Some require a commitment to public service. Others request providing heating and cooling repair and installation services in rural areas. Either way, these programs are invaluable to HVAC technicians struggling with educational debt.

Loan forgiveness and loan repayment programs are beneficial options for loan borrowers. One such loan forgiveness program, the Public Service Loan Forgiveness (PSLF) program, forgives loan balance after 120 payments and other qualifications are met. This is just one of the loan forgiveness options available to loan borrowers.

Additionally, loan repayment plans that adjust minimum monthly payments based on income may provide some reprieve. For example, the office of Federal Student Aid offers income-driven repayment (IDR) plans that apply to most federal loans. Borrowers interested in loan forgiveness or loan repayment programs should refer to specific criteria required in their respective situations.

Loan forgiveness and repayment programs aim to help individuals manage their loans while delivering essential HVAC services to populated and deprived regions nationwide.

HVAC techs who take advantage of loan forgiveness and repayment programs can offer necessary heating and cooling services that adhere to environmental health standards, lessening student debt while enhancing lives.

Who Qualifies for Loan Forgiveness & Repayment Programs?

The qualifications for loan forgiveness and repayment programs vary depending on the type of loan and program. Generally, borrowers must make regular loan payments and meet other criteria to qualify for a loan forgiveness or repayment program.

To be eligible for most federal student loan forgiveness and repayment programs, borrowers must:

Be a U.S. citizen or legal resident with a valid Social Security number
Have borrowed federal student loans from an approved lender
Have made at least 120 qualifying payments over 10 years while employed full-time in an eligible job position (e.g., for the PSLF Program)
Not owe any back taxes or have any defaulted federal loans
Meet certain income requirements

Additionally, certain federal loans, like PLUS Loans, are only eligible for some of the same forgiveness and repayment plans that other student loans may qualify for. Loan servicers typically provide more detailed information about the specific requirements of each program.

Benefits of Loan Forgiveness & Repayment Programs

Loan forgiveness and repayment plans are excellent ways for borrowers to manage their student loan debt. These programs help borrowers save money on monthly payments, reduce total loan balances and possibly have some loans forgiven entirely.

Some key benefits associated with these plans include:

Lowering or eliminating monthly payments
Reducing overall loan balances
Offering potential loan forgiveness after meeting specific requirements
Helping borrowers stay in good standing with their lenders
Giving borrowers more control over their debt

Achieving financial freedom begins with taking active steps to pay off debt. One of the wisest strategies is zeroing in on high-interest loans and using loan forgiveness or repayment plans, which can help save money. With less debt liability, borrowers are better positioned for a secure financial future, giving them more room to invest responsibly as part of their long-term financial plan.

Examples of HVAC Loan Forgiveness & Repayment Programs

Despite the limited loan forgiveness and repayment options specifically designated for HVAC technicians, those employed in public service industries can still benefit from loan programs such as the Public Service Loan Forgiveness (PSLF) Program. The program, overseen by the federal government, provides loan forgiveness after a specific period of employment in an area of public service. In addition, loans may also be eligible for partial loan cancellation if the borrower works within underserved regions specified by the federal government.

Additionally, private loan programs available through loan servicers can offer alternative loan repayment assistance to HVAC technicians.

Here are some student loan forgiveness and repayment options for HVAC technicians.

Public Service Loan Forgiveness (PSLF) Program

The Public Service Loan Forgiveness (PSLF) Program is a loan forgiveness program that allows borrowers to have their federal student loan debt forgiven if they meet a specific set of requirements. The office of Federal Student Aid (FSA) created this loan repayment option to offer financial support and peace of mind to those in qualifying public service positions.

Eligibility is determined by demonstrating full-time, qualifying public service employment and 120 qualifying payments on eligible loans. One month is counted as one payment towards the total needed for loan forgiveness. To finalize loan forgiveness, borrowers must apply for PSLF after meeting the qualification obligations. Through loan forgiveness and repayment programs, HVAC techs working in public service can rest easy knowing they have options to help manage loan obligations.

Income-Driven Repayment (IDR) Plans

Income-Driven Repayment (IDR) Plans are loan repayment options available to borrowers needing additional assistance making their monthly loan payments. The federal government provides these plans so individuals can pay a loan based on their income. This makes loan repayment more affordable and manageable.

The government offers four types of federal loan forgiveness and repayment programs, each providing different features, such as loan forgiveness after a specified number of years. By participating in one of these programs, borrowers can reduce their loan burden, stay current with their loan payments, and even be forgiven for loan balances. In addition, IDR Plans benefit those who may have difficulty affording traditional student loan payment plans.

Income-Driven Repayment (IDR) Plans are designed to help low-to-middle-income individuals. The BLS reports that the average salary of HVAC technicians falls slightly above the national average for all occupations. By utilizing IDR plans, HVAC techs can pay off their student loan debt on a sustainable schedule.

Debt Consolidation: Federal Loans

For those struggling to manage multiple federal loans, Direct Consolidation Loans present an effective solution. These loans allow borrowers to consolidate all their existing Direct Loans or FFEL Program loans into one loan, come with a fixed interest rate, and offer extended repayment terms. This leads to lower monthly payments and opens the way to other advantageous repayment options, such as Public Service Loan Forgiveness (PSLF) or income-driven repayment plans.

Debt Consolidation: Private Loans

Private banks and lenders are an important source of student loan debt for many college students. Although private debt can be more challenging to manage than government debt, debt consolidation for these loans can make finding solutions much more straightforward.

In addition, by consolidating multiple loans into one or fewer loans, students may often find reduced interest rates that help improve debt payments. However, it is essential to note that such debt consolidation often extends the loan period, leading to higher overall payments in the long run.

Other Options to Pay for HVAC Programs

In addition to traditional loans, other options are available to help aspiring HVAC techs fund their tuition. These options include:

Scholarships and grants
Apprenticeship programs
Employer reimbursement plans (such as the FedEx Office Scholarship Program)
Community college tuition discounts (some states offer free or discounted tuition to students who live and graduated high school in-state)
Military education benefits (such as the GI Bill)
Federal student aid programs (such as the Pell Grant)

Rachel Drummond, MEd

Rachel is a freelance writer, educator, and yogini from Oregon. She’s taught English to international university students in the United States and Japan for more than a decade and has a master’s degree in education from the University of Oregon. A dedicated Ashtanga yoga practitioner, Rachel is interested in exploring the nuanced philosophical aspects of contemplative physical practices and how they apply in daily life. She writes about this topic among others on her blog (Instagram: @racheldrummondyoga).