Student Loan Forgiveness Programs

It’s simple to believe that you will always be saddled with student loan debt if you have a significant balance. However, looking into student loan forgiveness alternatives may provide some relief if your payments are becoming out of control.

 

Although it can take 10, 20, or even 25 years to become eligible for federal forgiveness, there are programs that can help lower your monthly payments much sooner, giving your budget some much-needed breathing room.

 

In certain situations, you could even qualify for complete loan discharge right away, such as if your school shuts down or you’ve been declared totally and permanently disabled.

What Is A Student Loan Forgiveness Program?

A student loan forgiveness program is a government or employer-backed initiative that cancels part or all of a borrower’s student loan debt, typically in exchange for meeting specific criteria like working in public service, teaching, or certain healthcare roles. These programs are designed to ease the financial burden on borrowers, especially those in lower-paying but essential professions.

 

Some of the most well-known programs include Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and income-driven repayment plan forgiveness. Each has different eligibility rules, such as making on-time payments for a set number of years or working for a qualifying employer.

Public Service Loan Forgiveness

Federal student loan borrowers have access to a number of government-backed forgiveness programs that can provide significant assistance, even though private student debts are not eligible for forgiveness.

 

One of the most recognized options is Public Service Loan Forgiveness (PSLF). This program is designed for borrowers who work full-time in public service roles, including government or qualifying nonprofit organizations. If you meet the requirements, your remaining federal student loan balance can be forgiven and the amount discharged is not considered taxable income.

 

To Qualify, You Must:

 

• Have federal Direct Loans
• Work full-time for a government or eligible nonprofit employer
• Make 120 qualifying monthly payments under an income-driven repayment plan

You must first combine your loans into a Direct Consolidation Loan in order to qualify for PSLF if they are from the FFEL Program or Perkins Loans.

How Many Borrowers Have Actually Received Loan Forgiveness?

According to data from StudentAid.gov, between November 2020 and June 2023, just 121,221 applications out of over 3.7 million submitted were approved for PSLF. That’s only about 3% approval, highlighting how crucial it is to follow the program’s guidelines closely. So far, over $1.8 billion in student loan debt has been forgiven for qualifying borrowers as of June 2023.

 

A big reason many applications are denied? Borrowers often make payments that don’t meet the criteria or fall short on the required full-time employment with an eligible employer. To avoid common pitfalls, it’s smart to track your progress regularly. You can use the PSLF Help Tool on the Federal Student Aid website to check your status and ensure you’re staying on track with the required steps.

Income-Driven Repayment

The U.S. Department of Education offers four income-driven repayment (IDR) plans designed to make federal student loan payments more manageable based on your income and family size. These plans can lead to loan forgiveness after 20 or 25 years of qualifying payments. However, unlike the Public Service Loan Forgiveness program, the forgiven balance under IDR is considered taxable income by the IRS.

 

Here Are The Four Idr Plans You Can Choose From:

 

• Saving on a Valuable Education (SAVE)
• Pay As You Earn (PAYE)
• Income-Based Repayment (IBR)
• Income-Contingent Repayment (ICR)

Saving on a Valuable Education (SAVE)

The SAVE plan, formerly known as REPAYE, is one of the most affordable and widely available income-driven repayment options. It’s open to all federal student loan borrowers with eligible loans. Your monthly payments are capped between 5% and 10% of your discretionary income, depending on whether you have undergraduate or graduate debt.

 

• Undergraduate loan borrowers may qualify for forgiveness after 20 years
• Graduate student loan borrowers become eligible after 25 years
• If you borrowed $12,000 or less, forgiveness could come in just 10 years

One major benefit of the SAVE plan is interest protection. If your monthly payment doesn’t fully cover the interest, the government pays the difference so your balance won’t grow as long as you make your payments on time.

Pay As You Earn (PAYE)

PAYE is a more selective plan that’s only available if your required payment would be lower than under the standard 10-year plan. This typically means you must have a partial financial hardship. To be eligible, you also need to have taken out your loans after October 1, 2007.

 

With PAYE, your payments are set at 10% of your discretionary income. Any remaining balance is forgiven after 20 years of qualifying payments.

 

Each IDR plan has specific eligibility rules, and the right one for you will depend on your loan type, income, and when you borrowed. If you’re seeking long-term affordability or forgiveness, these plans can provide a structured path toward managing and eventually eliminating your student debt.

 

Income-Based Repayment (IBR)

Income-Based Repayment, or IBR, is a student loan repayment option designed for borrowers experiencing partial financial hardship. Like PAYE, it reduces monthly payments based on your income and family size. The terms you receive under IBR depend on when you first took out your federal student loans.

 

• If your first loan was disbursed on or after July 1, 2014, your monthly payments will be 10% of your discretionary income, and any remaining balance will be forgiven after 20 years.
• For older loans taken before that date, payments are capped at 15% of your discretionary income, with forgiveness available after 25 years.

IBR can be a valuable tool for borrowers with older loans who may not qualify for newer repayment plans but still need a lower monthly payment and a path to eventual loan forgiveness.

Income-Contingent Repayment (ICR)

Income-Contingent Repayment is the most broadly accessible of the IDR plans, available to any borrower with eligible federal student loans. It’s also the only income-driven plan that allows parent PLUS loan borrowers to participate after consolidating into a Direct Consolidation Loan.

 

Under Icr, Your Monthly Payments Will Be The Lesser Of:

 

• 20% of your discretionary income
• What you would pay on a fixed 12-year plan, adjusted for your income

Remaining loan balances are forgiven after 25 years of qualifying payments. ICR tends to result in higher monthly payments compared to other IDR options, but it’s often the only choice for borrowers with parent PLUS loans. If you need flexibility and don’t qualify for other plans, ICR may still provide meaningful support and a clear path toward loan forgiveness.

Forgiveness For Teachers

Teachers have access to several federal, state, and local programs that can help reduce or eliminate student loan debt. In some instances, even private student loans may qualify for partial relief, though most opportunities are geared toward federal loans. While not all programs offer full forgiveness, many provide significant support for those working in education.

 

Here Are Some Of The Top Student Loan Forgiveness Options Available To Teachers:

 

Public Service Loan Forgiveness (PSLF)

You can be eligible for PSLF if you work full-time for a government agency or nonprofit educational institution. Following 120 eligible monthly payments under an income-driven repayment plan, the outstanding debt on your Direct Loans is forgiven under this program.

Federal Teacher Loan Forgiveness

Teachers who work full-time for five consecutive years at a low-income school or educational agency may be eligible for up to $17,500 in loan forgiveness. This program is especially beneficial for teachers in math, science, and special education.

Perkins Loan Teacher Cancellation

By teaching full-time for five years in specific qualifying schools or positions, you may be eligible for a 100% cancellation of your federal Perkins Loans. This includes working in special education, teaching high-need courses like math, science, or foreign languages, or teaching in low-income regions. 

TEACH Grant Program

Aspiring teachers pursuing a degree in education can receive up to $4,000 per year through the TEACH Grant. The grant doesn’t need to be repaid if you commit to teaching for at least four years in a high-need subject or at a school serving low-income students.

State-Sponsored Forgiveness Programs

Many states have created their own teacher loan forgiveness initiatives to help recruit and retain educators. These programs vary by state, so it’s worth checking with your state’s education department for opportunities in your area.

Related: Student Loan Forgiveness for Teachers

 

Forgiveness For Nurses

Nurses have access to a variety of student loan forgiveness programs designed to ease the financial burden of their education. Both federal and state options are available, offering partial or even full loan forgiveness in return for service in critical healthcare areas.

 

Here Are Some Of The Most Impactful Loan Forgiveness Programs Available To Nursing Professionals:

 

Public Service Loan Forgiveness (PSLF)

Many nurses working full-time at nonprofit hospitals, clinics, or government facilities may qualify for PSLF. If eligible, you can have your remaining federal loan balance forgiven after making 120 qualifying monthly payments under an income-driven repayment plan.

Nurse Corps Loan Repayment Program

This federal program offers significant relief by covering up to 85% of your unpaid nursing education debt. It’s available to registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty (NF) who commit to serving at least two years in a designated health professional shortage area. The program is competitive and prioritizes applicants working in underserved communities.

National Health Service Corps Loan Repayment Program (NHSC)

The NHSC program provides up to $50,000 in student loan repayment in exchange for two years of full-time service at approved health facilities. These sites often serve low-income or medically underserved populations and provide reduced-cost care to Medicare and Medicaid patients.

Perkins Loan Cancellation for Nurses

You can qualify for up to 100% loan forgiveness over five years if you have Perkins Loans. The forgiveness is awarded in yearly increments, and eligible nurses must work in a qualifying healthcare environment.

State-Level Forgiveness Programs for Nurses

Many states offer their own nurse loan forgiveness programs to address regional shortages in the healthcare workforce. These programs generally require a commitment to work in specific facilities or underserved areas, and the terms and benefits vary by state.

Forgiveness For Lawyers

For many legal professionals, student loan debt can be a major financial hurdle. Fortunately, several programs offer repayment assistance and even full loan forgiveness for lawyers, especially those pursuing careers in public service or government work.

 

Here Are Some Key Loan Forgiveness Options Available To Attorneys:

 

Public Service Loan Forgiveness (PSLF)

Lawyers employed full-time by government agencies or nonprofit organizations, including public defenders, may qualify for complete federal student loan forgiveness. After making 120 qualifying payments under an income-driven repayment plan, the remaining loan balance can be forgiven tax-free.

State-Based Loan Repayment Assistance Programs (LRAPs)

More than half of U.S. states, including New York, Florida, Illinois, Arizona, and Massachusetts, offer LRAPs to support lawyers committed to public interest work. These programs provide financial assistance for student loan repayment and often aim to encourage long-term service in roles like legal aid or public defense.

U.S. Department of Justice Attorney Student Loan Repayment Program

Attorneys working at the Department of Justice may be eligible for up to $6,000 per year in loan repayment assistance, with a maximum benefit of $60,000. To qualify, participants must commit to working at the DOJ for at least three years.

Perkins Loan Cancellation for Public Defenders

You can qualify for partial or complete debt cancellation if you are a public defender and have federal Perkins Loans. The loan type and the date of disbursement determine eligibility, and forgiveness is often awarded after five years of qualified service.

Forgiveness For Doctors

 

Physicians often graduate with substantial student debt, but several federal and state programs offer loan forgiveness or repayment assistance, especially for those who serve in public health roles or underserved communities.

 

Here Are Some Of The Most Valuable Student Loan Forgiveness Options Available To Doctors:

 

Public Service Loan Forgiveness (PSLF)

Doctors working full-time for government agencies or nonprofit healthcare providers may be eligible for full federal loan forgiveness through PSLF. After making 120 qualifying monthly payments under an income-driven repayment plan, any remaining student loan balance can be erased without a tax penalty.

National Health Service Corps Loan Repayment Program (NHSC)

Licensed doctors who agree to work for two years at an NHSC-approved site can receive up to $50,000 in student loan repayment assistance. These locations often serve low-income or rural communities and focus on closing the healthcare gap in underserved areas.

NIH Loan Repayment Programs (LRPs)

The National Institutes of Health offers several loan repayment programs for medical professionals and researchers conducting clinical, pediatric, or health disparities research. These LRPs can pay up to $50,000 per year toward student loans, significantly reducing the burden for doctors pursuing research careers.

State-Based Loan Forgiveness for Physicians

Many states run their own forgiveness or repayment assistance programs to attract doctors to medically underserved regions. These programs often require a commitment to practice in specific communities for a set number of years in exchange for significant debt relief.

 

Forgiveness For Pharmacists

Pharmacists burdened by student debt may find relief through several loan forgiveness and repayment assistance programs, especially those who serve in public sector roles or work in communities with limited access to pharmacy care.

 

Here Are Some Top Loan Forgiveness Opportunities Available For Pharmacists:

 

Public Service Loan Forgiveness (PSLF)

Pharmacists employed by government entities or nonprofit organizations may qualify for full federal loan forgiveness through PSLF. After making 120 qualifying monthly payments under an income-driven repayment plan, eligible borrowers can have their remaining federal loan balance forgiven tax-free.

National Health Service Corps (NHSC) Loan Repayment Program

The NHSC offers up to $50,000 in loan repayment for pharmacists who commit to working two years at an NHSC-approved site. These sites typically serve underserved populations and provide critical access to prescription and healthcare services.

NIH Loan Repayment Programs (LRPs)

Pharmacists engaged in biomedical or biobehavioral research may qualify for NIH LRPs, which provide up to $50,000 per year in loan repayment assistance. These programs support those conducting vital health research while easing the burden of educational debt.

State-Sponsored Forgiveness Programs for Pharmacists

Many states offer their own student loan forgiveness or repayment assistance programs to encourage pharmacists to work in rural or high-need areas. Eligibility requirements and benefits vary by state, but these programs can offer substantial relief for those willing to serve where help is most needed.

 

Forgiveness For Dentists

Dentists working in government roles or for eligible nonprofit organizations may qualify for various student loan forgiveness programs. Additionally, those who commit to serving in areas with dental shortages or providing care to underserved communities could receive loan repayment assistance.

 

Here Are Some Key Forgiveness Programs Available For Dentists:

 

Public Service Loan Forgiveness (PSLF)

Dentists employed by government agencies or qualifying nonprofit organizations can become eligible for full federal loan forgiveness. After making 120 qualifying payments under an income-driven repayment plan, any remaining loan balance may be forgiven without tax consequences.

National Health Service Corps (NHSC) Loan Repayment Program

The NHSC offers up to $50,000 in loan repayment to dentists who agree to work for at least two years at approved sites that serve low-income or underserved populations. This program helps increase access to dental care in high-need areas.

NIH Loan Repayment Programs (LRPs)

Dentists engaged in biomedical or biobehavioral research may qualify for NIH LRPs, which can provide up to $50,000 annually in loan repayment assistance. These programs support dentists pursuing research careers while easing student loan debt.

State-Level Dentist Loan Forgiveness Programs

Many states offer loan forgiveness or repayment options aimed at attracting and keeping dentists in underserved or rural areas. Benefits and eligibility criteria vary by state, providing additional opportunities to reduce debt while making a positive impact on community oral health.

 

Forgiveness For Physician Assistants

Physician assistants often face significant student loan debt after completing their master’s degrees, yet their salaries may not always match those of doctors or dentists. Thankfully, several programs offer loan repayment assistance and forgiveness to help ease this burden.

 

Here Are Some Top Loan Forgiveness Options For Physician Assistants:

 

Public Service Loan Forgiveness (PSLF)

Physician assistants employed by government agencies or qualifying nonprofit organizations may qualify for full loan forgiveness. After making 120 qualifying payments under an income-driven repayment plan, any remaining loan balance can be forgiven.

National Health Service Corps (NHSC) Loan Repayment Program

This program offers up to $50,000 in loan repayment assistance to physician assistants who commit to at least two years of service at approved locations that provide free or discounted care to Medicare beneficiaries and underserved populations.

State-Based Physician Assistant Loan Forgiveness

Many states have loan forgiveness programs specifically designed to attract and retain physician assistants. These programs vary but provide valuable opportunities to reduce student debt while serving local communities.

 

Other Forgiveness Programs

You may be eligible for student debt repayment assistance through military programs or other state-sponsored initiatives if you work as a healthcare professional, lawyer, or possess other highly sought-after talents.

State-Sponsored Programs

The National Health Service Corps supports many states by providing grants that fund student loan repayment programs for healthcare workers. You can use an interactive map to explore options and application details specific to your state. Additionally, nearly half of the states offer loan repayment assistance for lawyers working in public interest law, helping to encourage careers in underserved legal fields.

Military Programs

Active-duty service members qualify for Public Service Loan Forgiveness after completing 120 qualifying payments under an income-driven repayment plan. Beyond PSLF, branches like the Army, Navy, and Air Force also offer targeted student loan repayment assistance programs. These are designed to support doctors, lawyers, and other professionals with specialized skills who serve in the military.

 

Student Loan Discharge Programs

In certain cases, federal student loans can be discharged, meaning you won’t have to repay them. This usually applies in situations like disability, school closure, or fraud.

Total and Permanent Disability Discharge

You can be eligible for full loan forgiveness with no federal tax obligations if you are rendered permanently handicapped. Although DisabilityDischarge.com is temporarily stopped (as of Dec. 20, 2024), applications are still being accepted.

Borrower Defense to Repayment

Under this program, you might request to have your loans forgiven if your institution deceived you or violated state law.

Closed School Discharge

Unless you move to another school, you can be eligible for full loan forgiveness if your school closes while you’re enrolled or soon after you leave (within 180 days).

Discharge Due to Death

Federal student loans are forgiven if the borrower or a parent PLUS loan holder dies. Some private lenders offer similar options, but not all do.

 

Student Loan Cancellation Programs

You can be eligible to have your federal Perkins Loans canceled if you hold specific public service positions. Teachers, nurses, firemen, police officers, librarians, and other public-serving professions are among these occupations. Usually, loan cancellation occurs gradually over a number of years, and after five years of qualified service, full forgiveness is possible.

Teacher Cancellation for Perkins Loans

Teachers working full-time in low-income public or nonprofit schools may qualify for up to 100% forgiveness of their Perkins Loans. Eligible teachers include those in high-need subject areas like math, science, or special education.

Other Perkins Loan Cancellation Opportunities

A variety of public service jobs and volunteer roles can lead to full or partial Perkins Loan cancellation, including:

 

• Early childhood educators
• Employees at child or family service agencies
• Tribal college or university faculty
• Firefighters
• Law enforcement personnel
• Librarians with a master’s degree working in Title I schools
• Military members
• Nurses and medical technicians
• Providers of early intervention services for disabilities
• Public defenders
• Speech pathologists with a master’s degree in Title I schools
• Volunteers in AmeriCorps VISTA or Peace Corps

These cancellation programs reward those who dedicate their careers to helping others, providing real relief for borrowers with Perkins Loans.

 

What To Do If You Don’t Qualify For Student Loan Forgiveness

 

Not Eligible For Forgiveness? You Still Have Solid Options To Manage Your Student Loan Debt:

Income-Driven Repayment (IDR)

IDR plans lower federal loan payments based on your income. Any remaining balance may be forgiven after 20–25 years.

Extended or Graduated Repayment Plans

These plans stretch payments up to 25–30 years. Extended plans offer fixed payments, while graduated plans start low and increase over time. You’ll likely pay more in interest.

Federal Loan Consolidation

Combining federal loans through consolidation can extend repayment terms and simplify payments, but may lead to higher interest costs.

Private Loan Refinancing

Refinancing with a private lender could reduce your interest rate or monthly payment. Compare lenders to find the best deal.

Can You Get Private Student Loan Forgiveness?

Private student loan forgiveness is extremely rare. Unlike federal loans, private lenders don’t typically offer forgiveness programs. In most cases, loans are only forgiven if the borrower passes away or becomes permanently disabled.

 

Refinancing student loans with a private lender ends your eligibility for federal forgiveness programs, including Public Service Loan Forgiveness and income-driven repayment plans.

 

Some private lenders do provide relief alternatives including interim payment postponement or modified repayment programs, while complete forgiveness is doubtful. Review your original loan agreement for particular provisions and safeguards, then get in touch with your lender directly to see what options are available.

Conclusion

Navigating student loan debt can feel overwhelming, but forgiveness programs offer real relief, especially if you work in public service, healthcare, education, or underserved communities. Even if you’re eligible for federal forgiveness through PSLF, state-based assistance, or specialized discharge options, knowing your choices is key to making informed decisions. 

 

Even if forgiveness isn’t an option, alternatives like income-driven repayment, refinancing, or extended plans can still help lower your financial burden. Take time to explore the best student loan forgiveness programs for your profession, and stay proactive by reviewing eligibility requirements and deadlines. With the right strategy, financial freedom is possible.

 

FAQ’s about Student Loan Forgiveness Programs

Q.1 Who qualifies for the student loan forgiveness program?

Ans: You may qualify for student loan forgiveness if you work in public service, education, healthcare, or nonprofit sectors and have federal student loans. Eligibility often requires making 120 qualifying payments under an income-driven repayment plan. Programs like Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness are common options.

Q.2 How will I know if my student loan will be forgiven?

Ans: To know if your student loan will be forgiven, review the eligibility criteria for federal forgiveness programs like PSLF or IDR. Use the Federal Student Aid website to track your qualifying payments and employment certification. You’ll receive official confirmation from your loan servicer once your application is processed and approved.

Q.3 What is the deadline to apply for student loan forgiveness?

Ans: There is no universal deadline for student loan forgiveness, but temporary initiatives like the IDR Account Adjustment may have cutoffs. For PSLF or other federal programs, apply as soon as you meet eligibility. Always check deadlines on the Federal Student Aid website or with your loan servicer.

Q.4 Is there a form I need to fill out for student loan forgiveness?

Ans: Yes, you must complete a specific form for each forgiveness program. For PSLF, submit the PSLF Form via the Federal Student Aid website. For Teacher Loan Forgiveness or IDR forgiveness, different applications apply. Make sure your employment and loan details are certified correctly when applying.

Q.5 How long is the approval process for student loan forgiveness?

Ans: The approval process for student loan forgiveness varies but typically takes several months. For PSLF, it may take 90 days or longer, depending on loan servicer volume. Regularly check your application status and submit all required documents to avoid delays. Your loan servicer will notify you once a decision is made.