Student Loan Forgiveness Programs
Learn about all available loan forgiveness programs, eligibility requirements, and strategies to maximize your chances of debt elimination.
💡 Over 700,000 borrowers have received $51 billion in PSLF forgiveness
Public Service Loan Forgiveness (PSLF)
PSLF forgives remaining federal loan balances after 120 qualifying payments while working full-time for qualifying employers. This is the most valuable forgiveness program for public service workers.
Qualifying Employers
- • Federal, state, local, or tribal government organizations
- • 501(c)(3) nonprofit organizations
- • Other nonprofits providing qualifying public services
- • AmeriCorps and Peace Corps
- • Public schools and universities
- • Public hospitals and health systems
Requirements
- • Work full-time (30+ hours/week)
- • Have Direct federal loans
- • Make 120 qualifying payments
- • Use an eligible repayment plan (IDR recommended)
- • Submit annual Employment Certification Forms
- • Apply for forgiveness after 120 payments
🎯 PSLF Success Strategy
Don't wait until you've made 120 payments to get involved with PSLF. Submit Employment Certification Forms annually to track your progress and catch any issues early.
- • Submit ECF within 6 months of starting qualifying employment
- • Enroll in an income-driven repayment plan immediately
- • Keep detailed records of all payments and employment
- • Use FedLoan Servicing (the PSLF servicer) for easier tracking
💰 Potential Savings
The average PSLF recipient has $66,300 forgiven. Graduate school borrowers often see six-figure forgiveness amounts, making PSLF extremely valuable for high-debt public servants.
Teacher Loan Forgiveness
Teachers in low-income schools can receive up to $17,500 in loan forgiveness after five consecutive years of qualifying service. This program can complement PSLF for even greater benefits.
Forgiveness Amounts
Up to $17,500
Math, science, or special education teachers in secondary schools
Up to $5,000
All other qualifying teachers
Requirements
- • Teach full-time for 5 consecutive years
- • Work in a low-income school (Title I)
- • Have Direct or FFEL loans
- • Meet highly qualified teacher requirements
- • No defaulted loans
- • Apply within one year of completing service
🔄 Combining with PSLF
You can use Teacher Loan Forgiveness first, then pursue PSLF for remaining balances. However, the same teaching service cannot count toward both programs simultaneously.
Income-Driven Repayment Forgiveness
After 20-25 years of payments under an IDR plan, any remaining balance is forgiven. This provides a safety net for borrowers who don't qualify for other forgiveness programs.
| Repayment Plan | Forgiveness Timeline | Loan Types |
|---|---|---|
| Income-Based Repayment (IBR) | 20-25 years | Direct and FFEL |
| Pay As You Earn (PAYE) | 20 years | Direct loans only |
| Revised PAYE (REPAYE) | 20-25 years | Direct loans only |
| Income-Contingent (ICR) | 25 years | Direct loans only |
⚠️ Tax Implications
Forgiven amounts under IDR plans may be taxable as income in the year of forgiveness. This "tax bomb" can result in a significant tax bill.
Planning Tip: Start saving for potential taxes years before forgiveness, or consider whether aggressive repayment might be more cost-effective.
Other Loan Forgiveness Programs
Health Professional Programs
Various programs exist for healthcare professionals serving in underserved areas:
- • National Health Service Corps Loan Repayment Program
- • Indian Health Service Loan Repayment Program
- • NURSE Corps Loan Repayment Program
- • State-specific healthcare professional programs
Military Service Programs
Military members and veterans may qualify for several loan benefits:
- • Military College Loan Repayment Program
- • Military service deferments and interest rate caps
- • Veterans Total and Permanent Disability Discharge
Legal Profession Programs
Lawyers working in public interest may access:
- • State-based loan repayment assistance programs
- • Law school institutional programs
- • Bar association assistance programs
Closed School & False Certification Discharge
Students may qualify for discharge if:
- • School closed while enrolled or within 180 days of withdrawal
- • School falsely certified eligibility for loans
- • School committed fraud or other misconduct
Getting Started with Forgiveness Programs
Assess Your Eligibility
Review each program's requirements to determine which ones you might qualify for. Consider your career path, loan types, and current employment.
Optimize Your Loans
Consolidate FFEL loans to Direct loans if needed. Choose the right repayment plan to maximize forgiveness benefits (usually an IDR plan).
Document Everything
Keep detailed records of employment, payments, and program requirements. Submit required forms annually and on time.
Stay Informed
Program rules change frequently. Stay updated through your loan servicer, Federal Student Aid, and relevant professional organizations.
💡 Professional Help
Consider consulting with a student loan specialist or attorney for complex situations. Many borrowers benefit from professional guidance, especially for PSLF applications.
Important Warnings & Common Mistakes
Avoid These Mistakes
Wrong Loan Type
FFEL loans don't qualify for PSLF - consolidate to Direct loans first
Wrong Repayment Plan
Standard repayment doesn't maximize PSLF benefits - use IDR plans
Missing Documentation
Not submitting annual forms can disqualify years of progress
Scam Alert
Never Pay Upfront Fees
Legitimate forgiveness programs are free through your loan servicer
Beware of Guarantees
No company can guarantee loan forgiveness - requirements must be met
Verify Contact
Only work with your official loan servicer or Federal Student Aid
Plan Your Forgiveness Strategy
Use our calculator to model different forgiveness scenarios and find the best path for your situation.
Model Your Forgiveness Strategy