Student loan debt can feel overwhelming, especially when you’re managing other financial obligations. Fortunately, there are several loan forgiveness programs available that could help reduce or eliminate your debt.
However, qualifying for these programs often depends on your profession, the type of loans you have, and your repayment history. In this guide, we’ll break down who qualifies for student loan forgiveness and how to navigate the process.
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness is one of the most well-known forgiveness programs, designed for individuals who work in the public sector.
Who Qualifies: To be eligible for PSLF, you must be employed full-time by a government or nonprofit organization and have made 120 qualifying payments on a federal Direct Loan under an income-driven repayment plan.
What You Need to Know: Only Direct Loans are eligible for PSLF, and you must continue working in the public service sector for the entire repayment period to qualify for forgiveness.
Teacher Loan Forgiveness
If you’re a teacher working in a low-income school, you might be eligible for Teacher Loan Forgiveness.
Who Qualifies: Full-time teachers who have taught for five consecutive years in a low-income school or educational service agency may qualify for up to $17,500 in loan forgiveness.
Eligibility Requirements: You must be considered a “highly qualified” teacher, which includes holding a teaching certificate and demonstrating competency in the subjects you teach.
Income-Driven Repayment (IDR) Forgiveness
Income-driven repayment plans are designed to make student loans more manageable by capping monthly payments based on your income and family size. After a set number of years, the remaining loan balance may be forgiven.
Who Qualifies: Borrowers enrolled in an income-driven repayment plan, such as Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), Income-Based Repayment (IBR), or Income-Contingent Repayment (ICR).
Conditions: Depending on the plan, you must make payments for 20 or 25 years, after which any remaining balance is forgiven.
Perkins Loan Cancellation
If you have a Perkins Loan, you may qualify for loan cancellation based on your profession.
Who Qualifies: Professionals such as teachers, nurses, law enforcement officers, and others in public service roles may qualify for partial or full cancellation of their Perkins Loans.
Conditions: The amount of forgiveness depends on the number of years you work in a qualifying role, with percentages of the loan forgiven each year.
Total and Permanent Disability Discharge
Borrowers who are unable to work due to a total and permanent disability can have their federal student loans forgiven.
Who Qualifies: You must provide documentation from the U.S. Department of Veterans Affairs (VA), Social Security Administration (SSA), or a licensed physician certifying your total and permanent disability.
Important Consideration: Forgiveness under this program is available for federal Direct Loans, FFEL Loans, and Perkins Loans.
Closed School Discharge
If your school closed while you were enrolled or soon after you withdrew, you may be eligible for a Closed School Discharge.
Who Qualifies: Students whose schools closed while they were still enrolled or within 120 days after they withdrew (or longer in some cases) may qualify for this discharge.
Eligibility Requirements: You cannot transfer your credits to another school, and you must not have completed your program elsewhere.
Borrower Defense to Repayment
If you believe you were misled by your school or that your school engaged in misconduct, you may be able to apply for Borrower Defense to Repayment.
Who Qualifies: Borrowers whose schools violated state laws, provided false information, or misled students about program quality, job prospects, or accreditation.
How It Works: If your application is approved, part or all of your federal loans may be forgiven, and you could receive a refund for past payments.
Student loan forgiveness can offer much-needed financial relief for those struggling with debt, but understanding who qualifies is essential.
From public service workers and teachers to individuals facing disability or school closures, there are numerous paths to loan forgiveness. If you meet the criteria for one of these programs, take the time to explore your options and get started on the path to debt relief today.