Student Loan Forgiveness Programs
Updated for 2025 · Federal programs only
Several federal programs can cancel part or all of your student loan debt — but eligibility requirements vary significantly. Here's what each program requires and how much you can receive.
Public Service Loan Forgiveness (PSLF)
Most PopularForgiveness Timeline
10 years (120 payments)
Eligible Loans
Direct Loans only
Payment Plans
Any IDR plan
Taxable?
No — federally tax-free
PSLF cancels 100% of your remaining Direct Loan balance after 120 qualifying monthly payments while working full-time for the government or a 501(c)(3) non-profit. Payments don't need to be consecutive.
Requirements
- ✓Work full-time (30+ hrs/week) for a qualifying employer
- ✓Have Direct Loans (consolidate FFEL/Perkins first)
- ✓Repay under an income-driven repayment plan
- ✓Make 120 qualifying payments
- ✓Submit Employment Certification Form annually
Eligible Employers
- •Government employees (federal, state, local, tribal)
- •501(c)(3) non-profit employees
- •Public school teachers and administrators
- •Military service members
- •Some private non-profit healthcare workers
Submit the PSLF Employment Certification Form every year — don't wait until year 10 to confirm your employer qualifies.
Teacher Loan Forgiveness
Up to $17,500Max Forgiveness
$17,500
Teaching Period
5 consecutive years
Eligible Loans
Direct + Stafford Loans
Taxable?
No
Teachers who complete five consecutive years of teaching in a Title I low-income school can receive up to $17,500 in loan forgiveness. The amount depends on your subject area.
Requirements
- ✓Teach full-time for 5 consecutive years
- ✓At a Title I school or educational service agency
- ✓Be 'highly qualified' in your subject area
- ✓Have no outstanding federal loan balance as of Oct 1, 1998
Forgiveness by Subject
| Subject / Role | Max Forgiveness |
|---|---|
| Math or Science (secondary level) | $17,500 |
| Special Education | $17,500 |
| Other highly qualified subjects | $5,000 |
You can pursue both Teacher Loan Forgiveness and PSLF — but the 5 years for Teacher Forgiveness won't count toward your 120 PSLF payments.
Income-Driven Repayment (IDR) Forgiveness
20–25 YearsForgiveness Timeline
20–25 years
Eligible Loans
Most federal loans
Payment Plans
SAVE, PAYE, IBR, ICR
Taxable?
Possibly (check state law)
All four income-driven repayment plans eventually forgive your remaining balance after 20 or 25 years of payments, depending on the plan and when you borrowed.
Forgiveness by Plan
| Plan | Forgiveness After |
|---|---|
| SAVE | 20 yrs (undergrad) / 25 yrs (grad) |
| PAYE | 20 years |
| IBR (new borrowers) | 20 years |
| IBR (older borrowers) | 25 years |
| ICR | 25 years |
The 'tax bomb' — forgiven amounts may be taxable at the federal level after 2025 (current exemption expires). Plan ahead by saving separately for the potential tax bill.
Other Federal Forgiveness Programs
Profession-SpecificNURSE Corps Loan Repayment
Up to 85% forgiveness for RNs and APRNs working in Critical Shortage Facilities or at eligible nursing schools.
National Health Service Corps (NHSC)
Up to $75,000 in repayment assistance for healthcare providers in Health Professional Shortage Areas.
Perkins Loan Cancellation
1–100% cancellation for teachers, military, law enforcement, nurses, and other service professions over 5 years.
Borrower Defense to Repayment
Loan discharge if your school used illegal or deceptive practices to enroll you.
Total and Permanent Disability
Full discharge if you're totally and permanently disabled (documented by SSA, VA, or physician).
Closed School Discharge
100% discharge if your school closes while you're enrolled or within 180 days of withdrawal.
Frequently Asked Questions
What is Public Service Loan Forgiveness (PSLF)?
PSLF cancels the remaining balance on Direct Loans after you make 120 qualifying payments (10 years) while working full-time for an eligible government or non-profit employer. The forgiven amount is not subject to federal income tax.
How much can teachers get forgiven?
Teachers can receive up to $17,500 in loan forgiveness (for highly qualified math, science, or special education teachers) or up to $5,000 (for other subjects) after five consecutive years of teaching in a low-income school.
What happens to loans after 20 or 25 years on IDR?
After 20 years on SAVE, PAYE, or IBR (for new borrowers), or 25 years on ICR or IBR (for older borrowers), the remaining balance is forgiven. This forgiveness may be treated as taxable income at the federal level.
Are there loan forgiveness programs for nurses?
Yes. Nurses can qualify for PSLF if they work for a qualifying employer. NURSE Corps Loan Repayment Program offers up to 85% forgiveness for nurses working in critical shortage facilities. Many states also offer their own nurse loan repayment programs.