Key Points
- Federal student loan forgiveness is available through multiple programs.
- Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven Repayment Forgiveness are the most common federal programs.
- Borrowers should check which types of loans they have, confirm their eligibly, and follow up as needed to ensure progress.
Millions of federal student loan borrowers are eligible for loan forgiveness under long-standing programs, but many don’t know whether they qualify or how to confirm their status. While recent legal changes and delays have caused confusion, borrowers can still seek relief under current rules.
We estimate that roughly 50% of student loan borrowers are eligible for some type of student loan forgiveness. There are over 80 different student loan forgiveness and repayment assistance programs available today. Many of these programs have existed for over a decade, and are not currently at risk of any legislative changes.
Here's what borrowers need to know about whether their student loans will be forgiven. We break down a checklist of how to qualify for the most popular loan forgiveness programs.
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1. Public Service Loan Forgiveness (PSLF)
The PSLF program forgives remaining federal loan balances after 120 qualifying monthly payments made while working full-time for a qualifying public service employer.
To be eligible for PSLF:
Checklist
The Department of Education has clarified that payments paused during the pandemic count toward PSLF if all other criteria are met (specifically, you filed the Employment Certification Form to cover all those months).
Some payments may qualify through the PSLF buyback program, where you can buy back missing months of payments. For example, the SAVE forbearance is eligible for PSLF buyback.
You will know your student loan will be forgiven under PSLF when your green banner reaches 120 payments and you receive your golden letter.
2. Income Driven Repayment Plan (IDR) Related Forgiveness
Under IDR plans, borrowers make payments based on income and family size for 20 or 25 years. Any remaining balance at the end of that period is forgiven.
Checklist
Recent policy changes have paused forgiveness actions under SAVE, PAYE, and ICR due to ongoing litigation.
The only active IDR forgiveness pathway at this time is IBR. If you do hit 20 or 25 years or eligible payments under PAYE or ICR, you will be placed into a forbearance awaiting the outcome of the court cases.
You will know you reached student loan forgiveness under IDR-related loan forgiveness when your green banner/loan tracker count reaches either 240 or 300 payments.
3. Teacher Loan Forgiveness (TLF)
This program offers up to $17,500 in forgiveness for teachers who work five consecutive years in qualifying low-income schools. This plan is not as generous as PLSF, but it does offer a shorter path to student loan forgiveness for teachers.
Teacher loan forgiveness only takes 5 years, but the downside is that you can only receive $5,000 or $17,500 in forgiveness. That may not be enough to get rid your student loan debt.
Checklist
Highly qualified math, science, and special education teachers can receive the highest benefit ($17,500). Other teachers may qualify for up to $5,000.
It's also important to note that you cannot "double-dip" your time for both TLF and PSLF. That's why, unless you will get your full loan forgiven, it usually makes sense to go for PSLF.
You will know you can receive student loan forgiveness under TLF when you submit your application after 5 consecutive years of teaching.
Other Loan Forgiveness Options
While not technically "forgiveness," certain discharge programs can cancel federal student debt due to hardship or misconduct.
Other Circumstances That May Qualify:
- Total and Permanent Disability
- School Closure within 180 days of withdrawal
- Borrower Defense to Repayment
- False Certification
- Death
- Bankruptcy
Make Sure You Know Your Situation
The key to knowing if your student loans will be forgiven is to both fully know your student loan debt information, and know the criteria of the program you're working towards.
None of the student loan forgiveness programs are automatic. All of them require that you either do some type of work or make payments over time, and then file an application to get your loans forgiven. Even in the cases of disability and death, you need to submit proof and follow the correct processes.
It always reminds me of the saying "nobody will care more about your money than you do." That's essential here. Call center reps. Loan servicers. The Department of Education. None of them care about your situation more than you do.
Be informed with your student loans, and know the criteria to get your loans forgiven under these programs.
Loan forgiveness works - over 1,000,000 people have received loan forgiveness under these programs. You can too if you follow the rules and ensure you do things correctly.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.