The Top Student Loan Forgiveness Programs

How much in student loan forgiveness can you receive? This depends on the loan forgiveness program you apply to. In some cases, you may even qualify for up to 100% loan forgiveness.

Below, you’ll find a list of all federal student loan forgiveness programs, as well as some state options.

Try our free eligibility assessment tools to check your forgiveness eligibility. If you need more help, contact us for additional assistance.

The Public Service Loan Forgiveness program (PSLF) offers complete loan forgiveness to those who work in the public sector. This includes non-profit employees, public school employees, and government employees to name a few.

How much in loan forgiveness can I receive from Public Service Loan Forgiveness?

In the PSLF program, you could qualify for complete student loan forgiveness after 120 payments. Plus, there is no dollar cap on the amount of money that you can have forgiven through PSFL.

Any qualifying loan balance that remains after 10 years is forgiven in its entirety. Best of all, the IRS does not view the forgiven debt as taxable income.

Who is eligible for Public Service Loan Forgiveness?

The PSLF program cares more about who you work for rather than what you do. To qualify, you must work or volunteer for one of the following:

• A government organization at any level
• A tax-exempt 501(c)(3) not-for-profit organization
• A not-for-profit organization that provides qualifying public services
• Working full-time

Program participants must also work full-time.

You are a full-time worker if you work a least of 30 hours per week. You must also be paying in an income-driven repayment plan to qualify.

The Public Service Loan Forgiveness program forgives anyWilliam D. Ford Federal Direct Loan. The loan must not be in default.  Other loans like Federal Perkins Loans or Federal Family Education can become eligible for PSLF if you consolidate them into a Direct Consolidated Loan.

Find out if you’re eligible for Public Service Loan Forgiveness

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How to apply for PSLF?

You apply for PSLF after you make 120 qualifying payments while working in an eligible job. Submitting the Employment Certification form is the only way to ensure you are making qualifying payments, and you can do that at any time. We recommend you submit this form annually and every time you switch jobs.

You must also ensure your loans are in the Direct Loan program.  Payments made in the Direct Loan program in an IBR, ICR, PAYE, or REPAYE repayment count as qualifying payments for those who work in the public sector and would like to apply for public service loan forgiveness.

More info: Public Service Loan Forgiveness Program (PSLF)

 

The Teacher Loan Forgiveness Program (TLF) awards educators with up to $17,500 in student loan forgiveness. It is designed to encourage students to enter the education field and to incentivize teachers to continue teaching.

How much in loan forgiveness can I receive from Teacher Loan Forgiveness?

The TLF program is one of the most beneficial student loan forgiveness options.

Qualifying teachers receive a tax-exempt principal reduction of either $5,000 or $17,500 on their federal loans. For some teachers, this eliminates their federal student loan balance altogether.

The second perk of the teacher loan forgiveness program is that it allows teachers to remain eligible for the Public Service Loan Forgiveness program. Under this program, their remaining federal loan balance would be forgiven after 10 years of on-time payments.

This means teachers get a principal reduction after five years and then complete forgiveness after an additional 10 years. Compared to the standard forgiveness term of 20 to 25 years, this is a great option.

Who is eligible for Teacher Loan Forgiveness?

First and foremost, qualified applicants must have worked as a teacher for five consecutive years. One of these years must be after the 1997-98 academic year.

This program defines a teacher as anyone who teaches directly in a classroom or does classroom-type teaching outside of the classroom. These teachers must work at an elementary school, secondary school, or educational service agency that serves low-income students. Special education teachers qualify too.

Teachers must also meet eligibility criteria that deem them “highly qualified.” To start, highly qualified teachers must have:

• at least a bachelor’s degree
• received full state certification as a teacher
• not had licensure or certification requirements waived for any reason

Along with meeting the above criteria, teachers must prove their subject knowledge and teaching skills.

Elementary school teachers must pass a rigorous state test on basic elementary school curriculum like writing, math, and reading. Middle and secondary teachers must pass a state academic subject test or earn a certification or degree in the subjects they teach.

Not only does the teacher have to qualify, but their federal loans must qualify too.

First, the loans you want to be forgiven must have been taken out before you finish your five years of consecutive teaching service. Second, you can only seek forgiveness for the following loan types:

• Direct subsidized loans
• Direct unsubsidized loans
• Subsidized federal stafford loans
• Unsubsidized federal stafford loans

Find out if you’re eligible for Teacher Loan Forgiveness

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How to apply for TLF?

Unlike other student loan forgiveness programs, you apply for the Teacher Loan Forgiveness program after completing your five consecutive years of service and not before.

So if you have already worked five qualifying years, you could apply and receive teacher loan forgiveness today using this application form.

You can fill out most of the form yourself, but your school’s chief administrative officer must fill out part of it. If you worked at more than one school during your five years of consecutive service, you must fill out an application for each school.

More info: Teacher Loan Forgiveness program (TLF)

Total and Permanent Disability Discharge program (TPD) helps borrowers suffering from a disability by offering a complete discharge on their federal loans.

How much in loan forgiveness can I receive from Disability Discharge?

If accepted for the disability discharge, you would receive complete loan forgiveness. You will no longer owe any money in either principal or interest.

Best of all, the amount forgiven is not reported as income to the IRS as of 2018. This means you will not have to pay taxes on it and will not lose your eligibility for government programs like social security or Medicare.

Along with immediate discharge, you might also receive some of your money back. Lenders are required to return any money that you paid on your loan since the start of your disability.

Who is eligible for Disability Discharge?

To receive immediate disability discharge, qualifying borrowers must prove that they are totally and permanently disabled. You must have documentation from the Veterans Affairs Office, the Social Security Office, or your physician.

The burden of proof is high and relies heavily on that official documentation. In general, you have to have been disabled for at least 60 months or expect to be disabled for at least 60 months to qualify. Those with disabilities expected to result in death are also eligible.

Your loans must be eligible too. TPD discharge relieves you from repaying loans made under the:

• William D. Ford Federal Direct Loan Program
• Federal Family Education Loan Program
• Federal Perkins Loan Program

TPD discharge also relieves borrowers from their TEACH Grant service obligation.

Find out if you’re eligible for Disability Discharge

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How to apply for TPD?

You can start the application process online by visiting the Federal Student Aid website.  You can also apply by filling out this form and have your doctor certify your disability.

More info: Total and Permanent Disability Discharge (TPD)

It is rare, but it is possible to have your student loans discharged through bankruptcy. This process requires proving “undue hardship” and may even require hiring a student loan lawyer.

What are the benefits of bankruptcy discharge?

If you can prove “undue hardship”, the court has several options. In most cases, the proceedings will result in one of the following:

• Your loans are fully discharged, and you no longer have to make any payments.
• Your loans are partially discharged and you must repay a portion of the loan.
• Your loan takes on new terms like a lower interest rate or a longer repayment term. You must still repay your loan.

Who is eligible for bankruptcy discharge?

To discharge your student loans through bankruptcy, you must prove that paying back your loans would be an undue hardship.

Unfortunately, there is no universal definition for “undue hardship.” Many courts will use the Brunner Test to determine whether you meet the burden of proof for undue hardship.

To pass this test, you need to meet the following three criteria:

• Based on your current financial situation, paying back your loan would make it impossible for you to maintain a minimal standard of living for yourself and your family
• Your current financial situation is persistent and will continue for a large part of your loan repayment period
• You have made a good faith effort and done what you can to repay your student loans

Some courts will look at your income, expenses, loan amount, and other circumstances to make a determination. The best way to find out how courts in your jurisdiction define “undue hardship” is to speak with a local bankruptcy attorney.

How to get my loans discharged through bankruptcy?

If you have decided that bankruptcy is the best option, you will first need to choose between Chapter 7 and Chapter 13 bankruptcy. The first is for borrowers who have no income to spare on paying back debt, and the latter is for borrowers who have some money to pay back some of their debt.

Since bankruptcy does not typically include student loan debt, you will then need to file a bankruptcy adversary proceeding. This proceeding asks the court to determine whether student loan repayment would cause undue hardship.

Be aware that these proceedings take a while and can get expensive. You can always consider applying for federal repayment plans or student loan forgiveness programs instead.

More info: Bankruptcy and Undue Hardship Student Loan Discharge

In the Direct Loan program, interest in the IBR does not capitalize on the subsidized portion of your direct loan. This applies only for the first three years of your IBR payment, and only if your IBR payment is less than what is normally due to interest.

This can amount to many thousands of dollars depending on your loan balance and what type of payment you currently qualify for.

There is also interest forgiveness in the PAYE and REPAYE plans as well.

Find out how much interest forgiveness you can receive!

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More Info: Student Loan Interest Deduction and Forgiveness

If you enroll into any of the income-driven repayment plans, your loan balance would be forgiven at the end of the term if you still have a remaining balance.

The term of the loan would be between 20-25 years depending on which repayment plan you choose, and when your loans were originally borrowed.

How much you will be forgiven will depend on your original loan amount, how much you are earning, and how much your earnings fluctuate during your repayment term.

Nurses have access to a number of county, state, and federal student debt forgiveness programs. If you currently work for a hospital or clinic, your employer may even offer assistance with repaying your nursing school loans.

The two main federal programs are the Nurse Corps Loan Repayment Program and the National Health Service Corps (NHSC) Loan Repayment Program.

Nurse Corps Loan Repayment Program (LRP)

The Nurse Corps Loan Repayment program pays off a portion of your nursing school debt in exchange for a service commitment in an area of high need.

How much in loan forgiveness can I receive from the LRP?

With the Nurse Corps program, you do the job you were trained to do and get help paying off your loans. This program will pay off 60% of your unpaid nursing education debt. You just have to work in a qualifying high need area for two years.

If you extend for a third year, Nurse Corps will pay another 25% of your loan’s original balance. With just three years of service, you could have up to 85% of your debt paid off.

Who is eligible for the LRP?

To participate in the Nurse Corps Loan Repayment program, you must meet the following criteria:

• Be a United States citizen
• Have a bachelor’s, associate, diploma, or graduate degree in nursing
• Work full-time as a licensed nurse, advanced practice registered nurse, or nurse faculty member
• Work in a critical shortage facility in a high need area or at an eligible school of nursing
• Have completed the nursing programs that you took out the loans for
• Be licensed to practice in the state where you intend to practice

How to apply for the LRP?

You apply for the Nurse Corps Loan Repayment program online, visit the Health Resources and Services Administration’s website. This highly competitive program gives preference to applicants with financial need.

National Health Service Corps Loan Repayment Program (NHSC)

The National Health Service Corps(NHSC) offers medical professionals, including select nurses, debt forgiveness in exchange for a two-year service commitment. Unlike Nurse Corps, this program awards loan forgiveness to eligible nurses who work full-time or part-time.

How much in loan forgiveness can I receive from NHSC?

This program awards medical professionals who work in Health Professional Shortage Areas (HPSAs) with loan forgiveness. The amount you receive depends on how needy the community you work in is:

• HPSA Score of 14-26: Up to $50,000 for full-time workers; Up to $25,000 for halftime workers
• HPSA Score of 0-13: Up to $30,000 for full-time workers; Up to $15,000 for halftime workers

Who is eligible for NHSC?

Primary care nurse practitioners, certified nurse-midwives, and psychiatric nurse specialists can apply to this program. To be eligible, you must also work full-time or part-time at an NHSC-approved Health Professional Shortage Area site for a minimum of two years.

How to apply for NHSC?

Before applying for the National Health Service Corps, you must first apply for and accept a job at an NHSC-approved site. Use the NHSC’s online search tool to find HPSA sites near you. After accepting the position, you can apply online.

More Info:

• Exhaustive list of student loan forgiveness programs for nurses
• Nurse Corps Loan Repayment Program (LRP)
• National Health Services Corps Loan Repayment Program (NHSC)

Unlike some other types of debt, student loan debt does not linger after someone passes away. If a borrower dies, all of their federal student loan debt will be discharged.

Benefits, eligibility and application process

This program is beneficial because it prohibits the Department of Education from pursuing assets from the deceased’s estate to cover the loan. The debt is simply wiped clear.

Federal loans, including parent PLUS loans, are eligible for the death discharge. Parent PLUS loans are eligible for discharge if either the student or parent passes away.

To begin the discharge process, a family member or legal representative must supply a copy of the death certificate to either the college or the loan servicer.

Colleges and universities do not commonly close, but it does happen. Luckily, in those situations, borrowers are protected thanks to the closed school discharge.

What are the benefits?

This program relieves students of their federal student debt if they are unable to attain their degree because their college or university closed down.

You will no longer have to make payments on eligible federal student loans and any payments you already made will be refunded. If you were in default on any of these loans, the loan holder will also repair your damaged credit history.

What are the eligibility requirements?

If your school closes while you are enrolled or within 120 days after you withdrew, you may be eligible for complete federal student loan discharge. There are a few stipulations. The physical campus that you are enrolled in must be the one to close. For online schools, the college’s physical headquarters must have closed.

Even if you meet the above criteria, a few other circumstances would make you ineligible for this program:

1. You withdrew more than 120 days before the school closed
2. You completed the same or comparable program through a teach-out at another college
3. You completed the same or comparable program by transferring at least one credit to another school
4. You completed the same or comparable program by another means
5. You completed all coursework for the program at the closed school even if you did not receive a diploma or certificate

Eligible loans include the FFEL, Direct Stafford, PLUS, and Perkins loans.

How to apply for closed school discharge?

You can apply for the closed school discharge program by contacting your loan servicer.

Generally, you will print out an online form and mail it in with a copy of your academic transcript and any related financial records. Contact the state government licensing department if you have trouble obtaining your transcript.

To incentivize qualified individuals to join the military or the reserves, many U.S. military branches offer student loan forgiveness programs.

How much in loan forgiveness can I receive with MCLRP?

Qualifying borrowers can receive up to $65,000 in loan forgiveness over the length of their service contract.

For active duty members, the military pays the greatest of 33.33% of your remaining principal balance annually or $1,500 for each service year. For reserves, the Army and Navy repay 15% or $1,500 per year, whichever is greater. The Air National Guard repays the greatest of 15% or $5,000 per year.

CLRP benefits are taxable, but 28% of the forgiveness payments are sent directly to the IRS. This means you will not owe any taxes out of pocket related to your CLRP benefits.

What are the eligibility requirements for MCLRP?

To qualify, you must join the Army, Air Force, Coast Guard, National Guard, or Navy as a new recruit, reenlist, or move from active duty to the Army or Navy reserves.

The program follows these specific eligibility requirements:

• Active duty military members must have no previous military experience
• Army recruits or reenlisting members must sign on for a minimum of three years of service
• Army members must have a high school diploma and a score of at least 50 on the Armed Forces Vocational Aptitude Battery
• Members of the Army on active duty, the Army Reserves, the Army National Guard, and the Air National Guard, you must join or reenlist in a shortage military occupational specialty or air force specialty code
• Air Force or Navy re-enlistees must sign on for a minimum of four years of service

Only the following loan types taken out prior to service are eligible for forgiveness:

• Auxiliary Loan Assistance for Students (ALAS)
• Stafford Student Loan
• Parent Loans for Undergraduate Students (PLUS)
• Consolidated Loan Program
• Federally Insured Student Loans (FISL)
• Perkins Loan
• Supplemental Loans for Students (SLS)

How to apply for CLRP?

Speak with a military recruiter or career counselor if you are interested in the Military College Loan Repayment program. They can help confirm your eligibility and help you apply to the military.

No matter what branch you decide to join, make sure your enlistment contract mentions the CLRP.

Through the Department of Education, several colleges offer low-interest Perkins Loans to financially needy students. If you received a Federal Perkins Loan, you might qualify for partial or full loan forgiveness.

How much in loan forgiveness can I receive with Perkins Loan Cancellation?

This student loan forgiveness program cancels a percentage of a borrower’s Federal Perkins Loan if they work full-time in an eligible field. You will have a portion of your loans forgiven for each year of service. The specific cancellation terms depend on your line of work, but this program awards up to 100% forgiveness. For the majority of Perkins Loan cancellations, the cancellation terms are as follows:

• Year 1: 15% of the original principal loan amount
• Year 2: 15% of the original principal loan amount
• Year 3: 20% of the original principal loan amount
• Year 4: 20% of the original principal loan amount
• Year 5: 30% of the original principal loan amount

What are the eligibility requirements?

To qualify, you must have outstanding Perkins Loans and work or serve in an eligible role. The following borrowers are eligible:

• 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 services
• Public defender
• Speech pathologist with master’s degree at Title I school
• Teacher
• Volunteer with service AmeriCorps VISTA or Peace Corps

How to Apply for PLC?

Unlike other federal programs, you must apply directly to the college that awarded your Perkin’s Loan. They will give you forms and specific instructions on what to do depending on the type of cancellation.

More info: Perkins Loan Cancellation program.

The federal government is not the only entity offering student loan forgiveness. Many states have their own programs to help relieve student debt. Here a few to give you an idea.

California State Loan Repayment Program (SLRP)

California awards health care professionals who work in areas of high need with student loan repayment assistance.

What are the benefits?

This program awards full-time workers with up to $110,000 over six years.

Participants can receive $50,000 maximum for an initial two-year commitment, $20,000 per year for a three-or-four year commitment, and $10,000 per year for a five-or-six-year commitment. Part-time workers can receive up to half of those amounts.

What are the eligibility requirements?

To be eligible for this program, you must:

• Be a U.S. citizen or eligible non-citizen
• Be a California resident
• Be a licensed healthcare professional
• Be employed or have accepted employment at a SLRP-approved site
• Commit to work full-time for two years or half-time for 4 years

Funds received from this program can be used to pay off Stafford loans, Grad PLUS loans, consolidated loans, Perkins loans, and private student loans.

How to apply?

The application cycle typically opens late summer and remains open for a few months. For a complete list of eligibility requirements and to apply, visit the official application page for the California SLRP program.

New York State Young Farmers Loan Forgiveness Incentive Program

New York State created this program to encourage recent college graduates to become farmers. It awards student loan forgiveness to eligible young farmers accepted to the program.

What are the benefits?

This program awards up to $50,000 over five years. The money is awarded in annual disbursements of up to $10,000, and the amount cannot exceed your total student loan amount. You can use this money to pay off eligible federal, state, and private student loans.

What are the eligibility requirements?

To qualify for this program, you must:

• Be a NYS resident and have lived in NYS for 12 straight months prior to applying
• Be a U.S. citizen or eligible non-citizen
• Have an undergrad degree from an approved NYS higher education institution
• Have outstanding student debt as a result of earning your degree
• Apply within two years of graduation
• Operate a farm full-time in NYS
• Sign a service contract stating that you will operate a NYS farm full-time for at least 5 years
• Not be in default on any of your state or federal aid

How to Apply?

Applications go out once per year and are available online. The state awards up to 10 individuals each year depending on available funding. To apply visit the Higher Education Services Corporation website.

Ohio Dentist Loan Repayment Program

The Ohio Dentist Loan Repayment program seeks to improve oral health by incentivizing dentists to work in dental health resource shortage areas.

What are the benefits?

This program receives funds from dentist biennial registration fees and awards these funds every two years. The amount an applicant receives depends entirely on the funds available and the number of awardees.

What are the eligibility requirements?

To be eligible, you must be a dental student in your last year of dental school, a dental resident in your last year of residency, or a practicing general or pediatric dentist.

If accepted, you must agree to work in a dental professional shortage area in Ohio. In addition, you must also treat Medicaid patients and care for patients regardless of their ability to pay.

How to apply?

For application information, contact the Ohio Department of Health Primary Care Office at 614-644-8496 or email the Ohio Dental Association at dentist@oda.org.

More Info: Ohio Dentist Loan Repayment Pogram

PA IOLTA Loan Repayment Assistance Program

The Pennsylvania Bar Foundation funds this program for two reasons. The first is to help lawyers manage their student debt and remain in public service. The second is to help IOLTA-funded legal organizations attract and retain top talent.

What are the benefits?

This program awards one-year loans that are payable quarterly. Accepted applicants must use these loans to repay loans taken out for undergraduate education, law school education costs, and bar exam study.

The awarded loans are forgiven after 12 months of service if the recipient met the eligibility requirements for the entire year.

How much money you receive depends on funding and the number of applicants. You can apply for up to ten, one-year loans.

What are the eligibility requirements?

To be eligible for this program, you must:

• Be licensed to practice law in PA or permitted to practice law under Bar Admission Rule 311
• Have a valid PA Supreme Court identification number
• Practice law as an employee of an IOLTA-funded organization
• Have educational debt exceeding or equal to the amount of the LRAP grant
• Not be in default on any of your student loans

In addition to the above requirements, this program has a salary cap. When you apply, your gross salary cannot exceed $66,000. The only exception is if your annual net debt service is equal to or greater than 10% of your current annual gross salary.

How to apply?

The application cycle begins each year in September. Simply apply online when the application cycle opens.

More info: PA IOLTA Loan Repayment Assistance Program.

“Obama Student Loan Forgiveness” is a nickname for the William D. Ford Direct Loan program. The name came about when President Obama reformed part of the Direct Loan program in 2010 by signing the Health Care and Education Reconciliation Act of 2010.  As a result of expanded funding for federal student loans, more borrowers gained access to more options with loan repayment.

President Obama made the following changes to federal student loan forgiveness:

• The federal government will no longer give subsidies to private lending institutions for federally backed loans.
• Borrowers of new loans starting in 2014 will qualify to make payments based on 10% of their discretionary income.
• New borrowers would also be eligible for student loan forgiveness after 20 years instead of 25 on qualifying payments.
• The money will be used to fund poor and minority students and increase college funding.

The Trump administration is taking its own approach to the William D. Ford Direct Loan Program, and student loan legislation as a whole. You can learn more about Trump’s plan for student loan forgiveness here.

Facing an impossible amount of student loan debt?

Student loan forgiveness programs help you pay back your loans faster and in a more reasonable way. They not only lessen your monthly payments but also improve your credit

Not sure what program to apply to or if you’re eligible? Our friendly experts will be happy to answer your questions.