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If it seems like you’re never going to be able to pay off your student loans, it might be time to look into student loan forgiveness.
Although it can take 10, 20, or 25 years to qualify for federal student loan forgiveness, you can often have your monthly payments reduced right away.
You may even be eligible to have your student loans discharged immediately if your school has closed or you’re totally and permanently disabled.
In this post:
- Federal student loan forgiveness programs
- Student loan forgiveness by profession
- Student loan discharge programs
- Student loan cancellation programs
- What to do if you don’t qualify for student loan forgiveness
Federal student loan forgiveness programs
There are several federal student loan forgiveness programs that you might be eligible for. Two of the most well-known include:
Unfortunately, private student loan forgiveness isn’t available. But there are other options that could help you manage your private student loans, such as refinancing.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is geared toward those 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 nonprofit or government agency for 10 years
- 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.
This means only 1.94% of applicants have had their loans forgiven through PSLF.
Some of the main reasons behind rejected applications include making non-qualifying payments and missing information. If you’re planning to apply for PSLF, be sure to regularly double-check with your loan servicer that you’re on track — both with payments and filing requirements.
Learn More: How to Get Student Loan Repayment Help
Income-driven repayment
There are four income-driven repayment (IDR) plans that base your monthly payments on your income.
Depending on the plan, you could qualify for loan forgiveness in 20 to 25 years. Unlike PSLF, the forgiven amount under an IDR plan is considered taxable by the IRS.
The four IDR plans include:
- Revised Pay As You Earn (REPAYE): This plan is available to all borrowers with eligible federal student loans. Your payments will be 10% of your discretionary income. If you have undergraduate student loans, you could qualify for forgiveness after 20 years. With graduate loans, your balance will be forgiven after 25 years.
- Pay As You Earn (PAYE): This plan is only available if your monthly payment would be 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 Sept. 30, 2007. On PAYE, your payments will be 10% of your discretionary income, and any remaining balance will be forgiven after 20 years.
- Income-Based Repayment (IBR): Like with PAYE, you must demonstrate a partial financial hardship to qualify for 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 you could qualify for forgiveness after 15 years.
- Income-Contingent Repayment (ICR): Any borrower with federal student loans can sign up for 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.
If you decide to leave an IDR plan, fail to recertify your income, or are no longer eligible to participate in it, some or all of your unpaid interest may be recapitalized and added onto your loan balance.
If you need to lower your student loan payment, student loan refinancing could be another 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.
If you decide to refinance, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your rates from multiple lenders in two minutes.
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Student loan forgiveness by profession
Depending on your career field, you might qualify for a student loan forgiveness program — namely if you work in public service. Here are several options for specific professions:
- Student loan forgiveness for teachers
- Student loan forgiveness for nurses
- Student loan forgiveness for lawyers
- Student loan forgiveness for doctors
- Student loan forgiveness for pharmacists
- Student loan forgiveness for dentists
- Student loan forgiveness for physicians assistants
- Other forgiveness programs
If you don’t work in a profession that qualifies for student loan forgiveness, you might be able to pay off your loans faster with student loan refinancing. When you refinance, you could get a lower interest rate or a reduced monthly payment.
Just remember that once you refinance federal student loans, you’ll lose access to federal benefits and protections, including income-driven repayment and student loan forgiveness programs.
If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for your situation. You can do this easily with Credible — after filling out a two-minute form, you can compare your rates from multiple lenders.
Student loan forgiveness for teachers
There are many federal, state, and local programs that provide student loan forgiveness for teachers. Keep in mind, though, that some programs only provide partial forgiveness.
Programs that offer student loan forgiveness for teachers include:
- PSLF: As government or nonprofit employees, many teachers can qualify for PSLF after making 120 monthly payments in 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 in 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 five years in a school serving low-income families; serve as a special ed 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.
Learn More: Complete Guide to Student Loan Forgiveness for Teachers
Student loan forgiveness for nurses
Federal and state programs designed specifically for nurses can provide full or partial loan forgiveness. They include:
- PSLF: As government or nonprofit employees, many nurses should qualify for 100% forgiveness of federal loans after making 120 monthly payments in an income-driven repayment plan.
- Nurse Corps Loan Repayment Program: The federal Nurse Corps 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 two years in areas of the country where nurses are scarce.
- The National Health Service Corps Loan Repayment Program (NHSC): 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: Up to 100% loan forgiveness of Perkins loans provided incrementally 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 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 qualifying nonprofits may be eligible for 100% forgiveness after making 120 monthly 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 three 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 of the loan.
Learn More: Law School Loan Forgiveness and Repayment Programs
If you’re wondering how competitive your loan is, the loan score tool below can help. Just enter your APR, credit score, monthly payment, and remaining balance (estimates are fine) to see how your loan stacks up.
Student loan forgiveness for doctors
Like other health care professionals, doctors can often qualify for loan forgiveness if they’re working for the government or a qualified nonprofit.
Student loan repayment assistance might also be provided to doctors who agree to work in areas where there are shortages of doctors or treat underserved patients.
Here are some of the best student loan forgiveness programs for doctors:
- PSLF: Doctors who work for the government or qualifying nonprofits may be eligible for 100% forgiveness after making 120 monthly payments in an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program (NHSC): 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.
- NIH Loan Repayment Programs: The National Institutes of Health offers eight Loan Repayment Programs (LRPs) that provide up to $50,000 a year in student loan repayment assistance to doctors and scientists with medical degrees who perform biomedical or biobehavioral research.
- State-based physician loan forgiveness: To attract and retain doctors, many states provide assistance repaying medical school debt.
Learn More: Ultimate Physician Loan Repayment Guide
Student loan forgiveness for pharmacists
Pharmacists can often qualify for loan forgiveness if they work for the government or a qualified nonprofit.
Student loan repayment assistance may also be provided to pharmacists who agree to work in areas where there are not enough pharmacists.
Here are some great options for student loan forgiveness programs for pharmacists:
- PSLF: Pharmacists who work for the government or qualifying nonprofits may be eligible for 100% forgiveness after making 120 monthly payments in an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program (NHSC): 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.
- NIH Loan Repayment Programs: The National Institutes of Health offers eight Loan Repayment Programs (LRPs) that provide up to $50,000 a year in student loan repayment assistance to pharmacists and scientists with medical degrees 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
Student loan forgiveness for dentists
If you’re a dentist who works for the government or a qualified nonprofit, you might qualify for loan forgiveness.
Student loan repayment assistance may also be provided to dentists who agree to work in areas where there are not 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 nonprofits may be eligible for 100% forgiveness after making 120 monthly payments in an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program (NHSC): 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.
- NIH Loan Repayment Programs: The National Institutes of Health offers eight Loan Repayment Programs (LRPs) that provide up to $50,000 a year in student loan repayment assistance to dentists and scientists with medical degrees who perform biomedical or biobehavioral research.
- State-based dentist loan forgiveness: To attract and retain dentists, many states provide student loan forgiveness.
Learn More: Dental School Loan Repayment Guide
Student loan forgiveness for physicians assistants
Although they often take on considerable student loan debt to earn their master’s degrees, physician assistants 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 nonprofits may be eligible for 100% forgiveness after making 120 monthly payments in an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program (NHSC): Provides physician assistants 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.
- State-based physician assistant loan forgiveness: To attract and retain physician assistants, many states provide student loan forgiveness.
Other forgiveness programs
If you’re a healthcare professional, lawyer, or have other skills that are in 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 healthcare professionals. Use this map to find information for applying in your state. About half of 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 technical skills they need badly.
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.
Here are a few of the discharge programs available:
- Total and permanent disability discharge
- Borrower defense to repayment discharge
- Total and permanent disability discharge for veterans
- Discharge due to school closing
- Discharge due to death
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. The process is now automatic for veterans.
For more information on how to apply, visit the Department of Education’s dedicated website, DisabilityDischarge.com.
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 filling for 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.”
Total and permanent disability discharge for veterans
Veterans who become totally and permanently disabled while serving their country will automatically have any unpaid student loan debt discharged.
There’s no federal tax liability, but if you think your state might count your loan forgiveness as taxable income, you can opt out.
Visit the Department of Education’s dedicated website, DisabilityDischarge.com, for more information.
Discharge due to school closing
If the school you’re attending closes while you’re enrolled or within 120 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 120 days since you left, or you transferred to another school.
If you think you qualify, though, contact your loan servicer to file an application and keep making payments on your loans while your application is being processed.
Discharge due to death
Though we don’t want to think about this, if you were to pass away, your federal student loans will be forgiven.
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.
These programs include:
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
There are a number of other service occupations or volunteer services that 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)
Keep in mind that you’ll never be charged a fee to apply for any of the 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, some other options include:
- 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. Plus, any remaining balance will be forgiven after 20 to 25 years, depending on the plan.
- Extended or graduated repayment plan: Either of these plans will extend your repayment terms to 25 years, which will lower your monthly payment. Just keep in mind that while an extended 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.
- 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 might end up paying more interest charges.
- Student loan refinancing: If you refinance, your student loans will be combined into one new loan with a new term. You might also get a lower interest rate or reduced monthly payment. If you decide to refinance, be sure to shop around and compare your rates from multiple lenders. With Credible, you can compare your rates from multiple lenders in two minutes.
Keep Reading: Statute of Limitations on Private Student Loans: State Guide
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