Student loan debt weighs down millions of Americans, creating financial barriers that can last for decades. Recent data reveals that student loan debt in the United States has surpassed a staggering $1.7 trillion, affecting nearly 44 million borrowers. From graduates seeking financial freedom to working adults juggling multiple responsibilities, this crisis impacts individuals across all walks of life.
But there’s hope. Student loan forgiveness programs allow borrowers to eliminate part of or their entire debt, offering pathways to regain financial stability. Whether you’re a teacher, healthcare provider, or public servant, there are forgiveness options tailored to your profession and circumstances. Below are the top 10 student loan forgiveness programs you need to know about.
1. Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness is one of the most popular student loan forgiveness programs, designed for those who dedicate their careers to public service.
Eligibility
- Work full-time for a qualifying government organization or non-profit.
- Make 120 qualifying monthly payments under a federal direct loan while enrolled in an Income-Driven Repayment (IDR) plan.
- Must hold direct loans (eligible loans can be consolidated into direct loans to qualify).
How to Apply
- Complete the PSLF Employment Certification Form annually or whenever you change jobs.
- Use the StudentAid.gov PSLF Help Tool to streamline the application process.
Bonus Tip: Temporary PSLF changes enacted in 2021 (Waiver Program) offer qualifying borrowers credit for previously ineligible payments. Check your eligibility and apply before deadlines!
2. Teacher Loan Forgiveness
Do you work in education? The Teacher Loan Forgiveness Program is designed to reward teachers for their dedication to communities in need.
Eligibility
- Teach full-time for five consecutive academic years in a low-income school or educational service agency.
- Must have federal direct loans or Stafford loans.
Benefits
Eligible teachers can receive up to:
- $17,500 in forgiveness for those teaching mathematics, science, or special education.
- $5,000 for other teacher roles.
How to Apply
Submit the Teacher Loan Forgiveness Application to your loan servicer after fulfilling the required service period.
3. Income-Driven Repayment (IDR) Forgiveness
Income-Driven Repayment plans make monthly payments manageable by capping them based on your income. But did you know they also lead to loan forgiveness?
Qualifying IDR Plans
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
How It Works
- After 20 or 25 years of on-time payments (depending on the plan), any remaining loan balance is forgiven, but it may currently be taxable as income.
Tip: Keep complete records of your income and payment history to avoid errors in tracking.
4. Perkins Loan Cancellation
If you took out Perkins Loans prior to their discontinuation in 2017, there’s good news. Certain professions qualify for partial or full cancellation.
Eligibility
Jobs that qualify include:
- Teachers working in high-need fields.
- Nurses and medical technicians.
- Law enforcement officials and public defenders.
- Firefighters.
How to Apply
Complete the Perkins Loan Cancellation form provided by your school or loan servicer.
5. Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program was created to aid the heroes who keep us healthy.
Eligibility
- Must be a U.S.-licensed registered nurse, nurse practitioner, or faculty member at a nursing school.
- Work in a critical shortage facility or eligible nursing school.
Benefits
Receive forgiveness of up to 85% of your student loans over three years.
How to Apply
Submit your application through the Nurse Corps Program portal during the annual application window.
6. National Health Service Corps (NHSC) Loan Repayment Program
Serving underserved communities? The NHSC program provides financial support for healthcare workers.
Eligibility
- Work in a qualifying Health Professional Shortage Area (HPSA) for at least two years.
- Commonly available for doctors, dentists, and mental health professionals.
Benefits
- Up to $50,000 in loan forgiveness for a two-year commitment.
- Opportunities to extend funding for additional years of service.
How to Apply
Complete your application via the NHSC website when enrollment opens.
7. State-Specific Loan Forgiveness Programs
Many states offer their own loan forgiveness plans, tailored to meet local workforce demands. Here are a few examples:
- California’s Assumption Program of Loans for Education (APLE) for teachers.
- New York’s Get On Your Feet Loan Forgiveness Program, helping recent college graduates with federal loan repayment.
- Texas’ Loan Repayment Programs for Healthcare Workers, providing relief to doctors, nurses, and mental health professionals.
Check your state government’s website for available programs in your area.
8. Loan Forgiveness for Lawyers
Lawyers serving their communities in low-paying, public service roles are eligible for various forgiveness programs.
Programs Available
- Department of Justice Attorney Student Loan Repayment Program (ASLRP): Offers up to $6,000 per year for qualified attorneys.
- Law School-Based Forgiveness: Some law schools provide loan repayment assistance for alumni working in public interest roles.
How to Apply
Visit your state bar association’s website for additional programs or details.
9. Military Loan Forgiveness Programs
Service members and veterans often qualify for military-specific loan forgiveness.
Examples of Programs
- Active-duty service members may qualify for Public Service Loan Forgiveness.
- The Military Service Deferment Program pauses payments during active duty.
Reach out to your branch of service or the Department of Education for specific military loan forgiveness details.
10. Closed School Discharge
If your school closes while you’re enrolled or shortly after you withdraw, you may be eligible for a discharge of federal loans.
Eligibility
- You must have been enrolled when the school closed or withdrawn no more than 120 days prior to its closure (this may vary for recent programs).
How to Apply
Contact your loan servicer to discuss the steps required for a Closed School Discharge.
Explore Your Options Today
Decoding the right student loan forgiveness program may seem daunting, but the rewards make it worth the effort. Whether you’re a teacher shaping young minds, a nurse or doctor serving communities in need, or a public servant making a difference, there are forgivable paths to easing the burden of student debt.
Take the first step. Explore eligibility, gather your documents, and apply. Financial freedom might be closer than you think!