If you have a large amount of student loan debt, it might seem like you’ll never be able to pay it off. If you’re feeling overwhelmed by your student loans, it could be a good idea to look into student loan forgiveness programs.
While it could take up to 10, 20, or 25 years to qualify for federal student loan forgiveness, some programs could help reduce your monthly payments right away to lessen the strain on your budget.
In some cases, you might even be eligible to have your student loans discharged immediately — for example if your school has closed or you’ve become totally and permanently disabled.
Here’s what you should know about student loan forgiveness programs.
Public Service Loan Forgiveness
While private student loan forgiveness unfortunately doesn’t exist, several federal student loan forgiveness programs are available.
One of the most well-known federal programs is Public Service Loan Forgiveness (PSLF), which is geared toward borrowers working in public service jobs. If you qualify, your loans will be forgiven tax-free. To be eligible, you must:
- Have federal Direct Loans
- Work full-time for a not-for-profit or government employer
- Make 120 qualifying payments on an income-driven repayment plan
While FFEL Program and Perkins Loans aren’t eligible for PSLF, you might qualify by consolidating them into a Direct Consolidation Loan, which is eligible for PSLF.
How many people have had their loans forgiven?
For PSLF forms submitted between November 2020 and June 2023, loan servicers deemed 121,221 applications out of 3,728,674 eligible for PSLF, according to StudentAid.gov. As of June 2023, borrowers who qualified for PSLF have collectively had more than $1.8 billion worth of student loans discharged so far.
However, this means that only 3% of applications were approved.
Some of the main reasons behind rejected applications include making non-qualifying payments and working less than required at a qualifying employer. If you’re planning to apply for PSLF, be sure to regularly track your progress. Federal Student Aid’s PSLF help tool can help you confirm your eligibility and submit the required forms.
Income-driven repayment
The U.S. Department of Education offers four income-driven repayment (IDR) plans that base your monthly payments on your income and household size. Depending on the plan, you could qualify for loan forgiveness in 20 to 25 years — though keep in mind that, unlike PSLF, the forgiven amount under an IDR plan is considered taxable by the IRS.
You can choose from these four IDR plans:
- Saving on a Valuable Education (formerly called Revised Pay As You Earn)
- Pay As You Earn
- Income-Based Repayment
- Income-Contingent Repayment
Saving on a Valuable Education
The Saving on a Valuable Education (SAVE) plan is one of the most affordable IDR plans available.
Formerly known as Revised Pay As You Earn (REPAYE), the SAVE plan is available to all borrowers with eligible federal student loans. Your payments will be 5% to 10% of your discretionary income, depending on whether you have undergraduate or graduate loans. If you have undergraduate loans, you could qualify for forgiveness after 20 years. With graduate loans, your balance will be forgiven after 25 years. Those who borrowed less than $12,000 can earn loan forgiveness in as little as 10 years.
Notably, if your payments are too small to cover all accrued interest, the government will cover any remaining amount. This means that as long as you make regular payments, interest will not be added to your balance.
In the news: Due to a federal court ruling on July 18, 2024, the SAVE Plan is temporarily on hold, and current borrowers enrolled in SAVE are being moved into forbearance. You can still apply for the SAVE Plan but expect delays in processing and potential changes due to ongoing litigation.
Pay As You Earn
Pay As You Earn (PAYE) is only available if your monthly payment is less than it would be on the standard 10-year repayment plan — which means you have a partial financial hardship. You must also have taken out your loans after Oct. 1, 2007.
On PAYE, your payments will be 10% of your discretionary income, and any remaining balance will be forgiven after 20 years.
Tip: No matter which IDR plan you choose, you’ll have to annually recertify your income and family size — essentially meaning that you must reapply each year. Be sure to keep track of when you’ll need to recertify and do so before the deadline. Otherwise, you could be removed from the plan, and your payments could increase significantly.
Income-Based Repayment
Like PAYE, you must demonstrate a partial financial hardship to qualify for Income-Based Repayment (IBR). If you took out your first loan on or after July 1, 2014, your payments will be 10% of your discretionary income, and any remaining balance will be forgiven after 20 years.
For older loans, your payments will be 15% of your discretionary income, and any remaining balance will be forgiven after 25 years.
Tip: Unlike with PSLF, any student loans forgiven through an IDR plan are considered taxable income. However, the American Rescue Plan Act of 2021 has temporarily made all student loan forgiveness tax-free through 2025 — meaning you likely won’t face a tax bill if you qualify for IDR forgiveness in the next few years.
Income-Contingent Repayment
Any borrower with federal student loans can sign up for Income-Contingent Repayment (ICR). You can also sign up with parent PLUS loans if you’ve consolidated them to a Direct Consolidation Loan.
Under ICR, your payments will be either 20% of your discretionary income or what you’d pay on a fixed repayment plan for 12 years (adjusted for income). Your remaining balance will be forgiven after 25 years.
Important: If you need to lower your student loan payment, student loan refinancing could be a useful option. If you refinance, you could reduce your monthly payment by extending your repayment term. Or you might qualify for a lower interest rate, which would reduce your overall costs. Just keep in mind that if you refinance your federal student loans, you’ll lose access to federal benefits and protections, including these forgiveness programs.
Forgiveness for teachers
Many federal, state, and local programs provide student loan forgiveness for teachers; even private student loans may be eligible in some cases. Keep in mind, though, that some programs only provide partial forgiveness.
Programs that offer student loan forgiveness for teachers include:
- PSLF: As government or not-for-profit employees, many teachers can qualify for PSLF after making 120 qualifying payments under an income-driven repayment plan.
- Federal Teacher Loan Forgiveness program: You may qualify for up to $17,500 in federal loan forgiveness after teaching full-time for five consecutive years at a low-income school or agency.
- Perkins Loans teacher cancellation: Up to 100% of your federal Perkins Loans can be forgiven if you teach for 5 years in a school serving low-income families; serve as a special education teacher; or teach a high-need subject like math, science, or a foreign language.
- TEACH Grant program: You can get up to $4,000 in TEACH grants per year to help pay for your teaching degree. That money doesn’t have to be repaid if you fulfill your obligation to teach at least four years in a high-need field or in schools that serve low-income families.
- State-based teacher loan forgiveness: In the hopes of attracting and retaining young teachers, a number of states operate their own forgiveness programs for teachers.
Tip: You can use the Teacher Cancellation Low Income Directory to search for schools that are considered low income for the purpose of federal student loan forgiveness programs.
Learn More: Complete Guide to Student Loan Forgiveness for Teachers
Forgiveness for nurses
Several student loan forgiveness programs for nurses offer full or partial loan forgiveness. These federal and state programs include:
- PSLF: As government or not-for-profit employees, many nurses should be eligible for federal loan forgiveness after making 120 qualifying payments in an income-driven repayment plan.
- Nurse Corps Loan Repayment Program: The federal Nurse Corps Loan Repayment Program pays up to 85% of the unpaid nursing education debt of selected registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty (NF). Applicants who are accepted into this competitive program agree to work for at least 2 years in areas of the country where nurses are scarce.
- The National Health Service Corps Loan Repayment Program (NHSC): This program offers up to $50,000 in loan repayment in exchange for two years of service at approved sites that provide free or discounted services to Medicare beneficiaries and others.
- Perkins Loans nurse cancellation: This program allows up to 100% loan forgiveness of Perkins Loans in increments over five years to nurses providing eligible service.
- State-based nurse loan forgiveness: To attract and retain newly certified nurses, many states provide student loan forgiveness.
Learn More: Student Loan Forgiveness for Nurses
Forgiveness for lawyers
Lawyers can get help repaying their student loans, up to and including forgiveness, through programs including:
- PSLF: Public defenders and other lawyers who work for the government or not-for-profit agencies may be eligible for 100% forgiveness after making 120 qualifying payments in an income-driven repayment plan.
- State loan repayment assistance programs (LRAPs): LRAPs in more than half of U.S. states — including Arizona, Florida, Illinois, Massachusetts, and New York — are aimed at promoting careers in public service by providing student loan repayment assistance.
- U.S. Department of Justice Attorney Student Loan Repayment Program: You may qualify for up to $6,000 in student loan repayment assistance per year, up to a maximum of $60,000, if you’re willing to commit to working at the Department of Justice for at least 3 years.
- Perkins Loan Cancellation for lawyers: Working as a public defender may qualify you for a full or partial Perkins Loan cancellation, depending on the type of loan you have and the date you received the loan.
Forgiveness for doctors
Like other healthcare professionals, doctors can often qualify for loan forgiveness if they’re working for the government or a qualified not-for-profit organization. Student loan repayment assistance might also be provided to doctors who treat underserved patients or agree to work in areas where there are shortages of doctors.
Here are some of the best student loan forgiveness programs for doctors:
- PSLF: Doctors who work for government or not-for-profit employers may be eligible for 100% forgiveness after making 120 qualifying payments in an income-driven repayment plan.
- National Health Service Corps Loan Repayment Program (NHSC): Qualifying health professionals who commit to 2 years of service at an approved site that provides free or discounted services to Medicare beneficiaries and others could get up to $50,000 in loan repayment.
- NIH Loan Repayment Programs: The National Institutes of Health offers multiple Loan Repayment Programs (LRPs) that provide up to $50,000 a year in student loan repayment assistance to doctors and scientists with medical degrees or doctorates who perform biomedical or biobehavioral research.
- State-based physician loan forgiveness: To attract and retain doctors, many states provide assistance in repaying medical school debt.
Forgiveness for pharmacists
Pharmacists can often qualify for loan forgiveness if they work for the government or a qualified not-for-profit organization. Student loan repayment assistance may also be provided to pharmacists who agree to work in areas where there aren’t enough pharmacists.
Here are some great options for student loan forgiveness programs for pharmacists:
- PSLF: Pharmacists who work for government or not-for-profit agencies may be eligible for 100% forgiveness after making 120 qualifying payments under an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program (NHSC): This program offers up to $50,000 in loan repayment in exchange for 2 years of service at approved sites that provide free or discounted services to Medicare beneficiaries and others.
- NIH Loan Repayment Programs: The National Institutes of Health offers several Loan Repayment Programs (LRPs) that provide up to $50,000 a year in student loan repayment assistance to pharmacists and scientists with medical degrees or doctorates who perform biomedical or biobehavioral research.
- State-based pharmacist loan forgiveness: To attract and retain pharmacists, many states provide student loan forgiveness.
Learn More: Pharmacists Student Loan Forgiveness Guide
Forgiveness for dentists
If you’re a dentist who works for the government or a qualified not-for-profit organization, you might qualify for loan forgiveness. Student loan repayment assistance may also be provided to dentists who agree to work in areas where there aren’t enough dentists, or who provide care to underserved populations.
Here are some great options for student loan forgiveness programs for dentists:
- PSLF: Dentists working for the government or qualifying not-for-profit agencies may be eligible for 100% forgiveness after making 120 monthly payments under an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program (NHSC): This program offers up to $50,000 in loan repayment in exchange for 2 years of service at approved sites that provide free or discounted services to Medicare beneficiaries and others.
- NIH Loan Repayment Programs: The National Institutes of Health offers Loan Repayment Programs (LRPs) that provide up to $50,000 a year in student loan repayment assistance to dentists and scientists with medical degrees or doctorates who perform biomedical or biobehavioral research.
- State-based dentist loan forgiveness: To attract and retain dentists, many states provide student loan forgiveness.
Forgiveness for physician assistants
Although physician assistants may take on considerable student loan debt to earn their master’s degrees, they often don’t earn as much as doctors or dentists. Fortunately, student loan repayment assistance and even forgiveness may be available.
Here are some of the best options:
- PSLF: Physician assistants working for the government or qualifying not-for-profit agencies may be eligible for 100% forgiveness after making 120 monthly payments under an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program (NHSC): This program provides physician assistants up to $50,000 in loan repayment in exchange for 2 years of service at approved sites that provide free or discounted services to Medicare beneficiaries and others.
- State-based physician assistant loan forgiveness: To attract and retain physician assistants, many states provide student loan forgiveness.
Learn More: Forgiveness Programs for Health Care Workers
Other forgiveness programs
If you’re a healthcare professional, or lawyer, or have other skills that are in high demand, you may qualify for repayment assistance from the military or a number of state-sponsored programs:
- State-sponsored programs: The National Health Service Corps provides grants to most states to run their own student loan repayment assistance programs for health care professionals. Use this map to find information about applying in your state. In addition, about half of the states provide assistance to lawyers pursuing careers in public interest law.
- Military programs: All active-duty service members may qualify for Public Service Loan Forgiveness after making 120 qualifying monthly payments. In addition, several branches of the armed forces — including the Army, Navy, and Air Force — provide student loan repayment assistance to doctors, lawyers, and other people with in-demand technical skills.
Student loan discharge programs
If you become disabled or the school where you received your loans suddenly closes, you might be eligible for a form of loan forgiveness called discharge.
Total and permanent disability discharge
If you become totally and permanently disabled while repaying your federal student loan debt, you can apply to have the remainder of your debt forgiven with no federal tax liability.
For more information on how to apply, visit the Department of Education’s dedicated website, DisabilityDischarge.com. Note: As of Dec. 20, 2024, the program is on pause, however, you can still submit your application.
Borrower defense to repayment discharge
If you’re defrauded by your school — if it misleads you about its job placement rates, for example — you could qualify to have your federal student loans forgiven by filing a Borrower Defense to Repayment claim.
You’ll usually have to demonstrate that the school, “through an act or omission, violated state law directly related to your federal student loan or to the educational services for which the loan was provided.”
Discharge due to school closing
If your school closes while you’re enrolled or within 180 days after you withdraw, you may qualify to have 100% of your federal loans forgiven. You can’t qualify for a closed school discharge if it’s been more than 180 days since you left, or if you transferred to another school.
Learn more about closed school discharges on the Federal Student Aid website.
Discharge due to death
Federal student loans are generally forgiven upon a borrower’s death. The same is true of parent PLUS loans taken out on your behalf. If you die, your parents are no longer obligated to pay. If your parents pass away, you aren’t obligated to repay parent PLUS loans they took out to pay for your school.
Many, but not all, private lenders provide death discharge for borrowers and cosigners, too.
Student loan cancellation programs
Workers in a number of public service occupations — including teachers, nurses, medical technicians, firefighters, police officers, and librarians — might qualify for partial or full discharges of their Perkins Loans. Forgiveness is granted incrementally, and it typically takes up to five years to qualify for 100% forgiveness.
Perkins Loan teacher cancellation
Elementary and high school teachers might qualify to have up to 100% of their federal Perkins Loans forgiven if they work full-time in a public or nonprofit school system and are serving students from low-income families. They must either teach in a field where there’s a shortage of qualified teachers (such as math or science) or be working as a special education teacher.
Other Perkins Loan cancellation programs
A number of other service occupations or volunteer services may lead to full or partial Perkins Loan cancellation, including:
- Early childhood education provider
- Employee at a child or family services agency
- Faculty member at a tribal college or university
- Firefighter
- Law enforcement officer
- Librarian with master’s degree at Title I school
- Military service
- Nurse or medical technician
- Professional provider of early intervention (disability) services
- Public defender
- Speech pathologist with master’s degree at Title I school
- Volunteer service (AmeriCorps VISTA or Peace Corps)
Learn more about Perkins Loan cancellation on the Federal Student Aid website.
Beware of scams: Millions of Americans are struggling to repay their student loan debt, and legions of shady operators have organized large-scale efforts to take advantage of their desperation. Keep in mind that you’ll never be charged a fee to apply for any student loan forgiveness, discharge, or cancellation programs. You also never have to pay to sign up for an IDR plan.
What to do if you don’t qualify for student loan forgiveness
If you don’t qualify for student loan forgiveness, here are some other strategies to pay off your student loans:
- Income-driven repayment: If you don’t qualify for other student loan forgiveness programs, an IDR plan could lower your monthly payments on your federal student loans. Any remaining balance will be forgiven after 20 to 25 years, depending on the plan.
- Extended or Graduated Repayment plans: Either of these plans will extend your repayment terms to 25 years (up to 30 for the Graduated Repayment plan), which will lower your monthly payment. Just keep in mind that while an Extended Repayment plan comes with a fixed payment, your payments will go up every two years on a Graduated Repayment plan. You’ll also pay more interest with these longer terms.
- Federal student loan consolidation: If you consolidate to a Direct Consolidation Loan, you can extend your repayment up to 30 years. Just remember that if you stretch your payments out over a longer period of time, you’ll likely end up paying more interest charges.
- Private student loan refinancing: If you refinance, your student loans will be combined into one loan with a new term. You might also get a lower interest rate or reduced monthly payment. If you decide to refinance your student loans, be sure to shop around and compare your rates from multiple lenders.
