Student loan forgiveness

Key Programs

Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, Income-Driven Repayment (IDR), SAVE Plan

Primary Provider

U.S. Federal Government

Federal Tax Status

Non-taxable at the federal level

Target Beneficiaries

Essential workers, government employees, non-profit workers, and low-income borrowers

Economic Impact Concern

Exacerbation of inflation

Maximum Teacher Forgiveness

$17,500 for qualifying full-time teachers

2024-02-01

2024-04-10

Student loan forgiveness programs are designed to relieve borrowers of their loan obligations, partially or in full. Loan forgiveness is typically available to essential workers, like teachers and healthcare professionals, and those affected by misconduct or school closures. Federal forgiveness programs do not apply to private loans. Forgiven loans may be taxable depending on state laws, though federal taxes do not apply. ### Table of Contents [...] Student loan forgiveness programs typically do not result in complete loan forgiveness. In most cases, forgiveness is granted to borrowers who make consistent payments. However, student loan discharge programs can relieve borrowers of their entire loans in extenuating circumstances, like bankruptcy or fraud. These programs are available to the percentage of students in public schools, private schools, and career schools with federal loans. [...] Many students rely on loans, but they can be challenging to repay as interest accumulates. This is why the government has created student loan forgiveness programs to relieve qualified borrowers of ballooning debt, where a portion or all of a loan is released from repayment, either partially or fully. ## What students have to say about their loan forgiveness

Loan Forgiveness You may qualify for student loan forgiveness of some or all of the balance of your federal student loans if you perform certain types of qualifying employment and make a required number of qualifying payments. ### Public Service Loan Forgiveness If you're employed by a government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness (PSLF) Program. The PSLF Program forgives the remaining balance of your eligible Direct Loans: [...] Under certain circumstances, you may be eligible to have all or a portion of your student loans forgiven or discharged. Read on for additional details about the options available. Loan Forgiveness Options Public Service Loan Forgiveness (PSLF) Same page link Income-Driven Repayment (IDR) Forgiveness Same page link Teacher Loan Forgiveness Same page link Loan Discharge Options [...] This program forgives up to $17,500 of student loan principal and interest for those who teach full time for five consecutive, complete academic years. This applies to certain schools or educational service agencies that serve primarily low-income families.

Student loan forgiveness programs can erase some or all of your higher-ed debt. There are more than a dozen programs available, some of which have niche requirements, like working for a specific type of employer. Others, like income-driven repayment plans, are open to most borrowers with federal student loans. Below are 14 programs, including student loan forgiveness, repayment assistance and discharge programs available in 2025. Check their requirements — plus other paths to relief. [...] Forgiveness isn’t an option for defaulted loans. You’ll need to use consolidation or rehabilitation to get defaulted federal student loans in good standing before they’re eligible for forgiveness. If your loans won’t qualify for forgiveness, student loan settlement or bankruptcy may reduce your debt in severe cases. [...] The federal government isn’t the only student loan forgiveness provider. Some states, organizations and companies may help you pay off your student loan bills — particularly if you work in certain high-need industries, like healthcare or education. These programs are typically framed as “student loan repayment assistance,” rather than forgiveness, because they pay you or your servicer directly, rather than erasing your debt at the source.

Repaying loans Income-Driven Repayment Loan Consolidation Defaulted student loans Student loan forgiveness + Public Service Loan Forgiveness (PSLF) + Teacher Loan Forgiveness Program Defer student loans Cancel student loans Loan Servicers Office of Federal Student Aid (FSA) Page Last Reviewed: January 15, 2025