Student loan debt is overwhelming, but loan forgiveness programs can bring much-needed relief for eligible borrowers. These programs have the power to cancel some or all of your student debt to help you enjoy financial freedom that much sooner. However, only a few individuals qualify, and the process isn’t straightforward.
This article will outline exactly who qualifies, what kinds of programs exist, and step-by-step instructions for how to apply.
- What is Student Loan Forgiveness?
Student loan forgiveness involves the cancellation of part or all of your student loan balance, such that you do not have to pay it back. Most forgiveness programs are usually for those with jobs in public service, education, healthcare, and other low-income professions.
Some programs cancel 100% of your loan balance, but some cancel a portion after a certain number of payments have been made.
- Whoseloan Forgiveness Is Eligible?
Eligibility depends on factors like:
✅ Type of student loan (federal vs. private loans)
✅ Employment field (public service, teaching, healthcare, etc.)
✅ Repayment history (making consistent payments)
✅ Income level (for income-driven forgiveness programs)
Most student loan forgiveness programs only apply to federal student loans (e.g., Direct Loans, Stafford Loans, and PLUS Loans). Private student loans do not qualify for federal forgiveness programs.
- Types of Student Loan Forgiveness Programs
There are several student loan forgiveness programs tailored to certain careers and financial situations.
A. Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) program forgives the balance of Direct Loans after 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a government or non-profit organization.
Who Qualifies?
✅ Employees of federal, state, local, or tribal government agencies
✅ Non-profit employees (501(c)(3) organizations)
✅ Military service members
How to Qualify:
Make 120 qualifying monthly payments under an income-driven repayment plan.
Work full-time for a qualifying employer for 10 years.
Complete the PSLF Employment Certification Form annually.
After 120 payments, complete the PSLF application with the U.S. Department of Education.
B. Teacher Loan Forgiveness
This program forgives up to $17,500 for highly qualified teachers who work full-time for five consecutive years in a low-income school or educational service agency.
Who Qualifies?
✅ Full-time teachers in low-income schools
✅ Must have taught for five consecutive years
✅ Teach in a high-need subject (math, science, or special education)
How to Apply:
Teach in an eligible low-income school for five consecutive years.
Finish five years of service and apply for the Teacher Loan Forgiveness Application.
Submit the application to your loan servicer.
Note: You can’t use PSLF and Teacher Loan Forgiveness at the same time.
C. Income-Driven Repayment (IDR) Forgiveness
Borrowers with an Income-Driven Repayment (IDR) plan will qualify for forgiveness after 20 or 25 years of payments.
Who Is Eligible?
✅ The borrowers enrolled under IDR plans:
Income-Based Repayment (IBR)
Pay As You Earn (PAYE)
Revised Pay As You Earn (REPAYE)
Income-Contingent Repayment (ICR)
✅ Payments for 20–25 years
How To Apply:
Get enrolled under the Income-Driven Repayment (IDR) Plan by contacting your loan servicer.
Start making qualifying payments for 20–25 years.
The balance is automatically discharged at the end of the repayment period.
D. Perkins Loan Cancellation
Borrowers with Perkins Loans may be eligible for 100% loan cancellation after 5 years of service in one of the public service professions.
Who Qualifies?
Teachers in low-income schools
Nurses and medical technicians
Firefighters and law enforcement officers
Public defenders
How to Apply:
Reach out to your school or loan servicer (Perkins Loans are school issued).
Submit the Perkins Loan Cancellation Request Form after every eligible year of service
E. Student loan forgiveness for nurses & health care professionals
There are several loan forgiveness programs designed for nurses, doctors, and other health professionals.
- Nurse Corps Loan Repayment Program
Up to 85% of nursing school loan balance
Nurses working in areas that are designated as a critical shortage area are eligible to apply. - National Health Service Corps (NHSC) Loan Repayment
Offers up to $50,000 in loan repayment for doctors, dentists, and mental health professionals.
Must work in underserved communities.
How to Apply:
Apply online through the Nurse Corps or NHSC websites.
Work in an eligible healthcare setting.
Submit employment verification and loan details. - How to Apply for Student Loan Forgiveness
Step 1: Determine Your Eligibility
Check if you have federal student loans (private loans don’t qualify).
Verify if your career, repayment plan, or employer qualifies under the program.
Step 2: Qualify for a Repayment Plan
Some programs (such as PSLF and IDR forgiveness) require income-driven repayment plans.
Reach out to your loan servicer to sign up.
Step 3: Make On-Time Payments
PSLF requires 120 payments, which is equivalent to 10 years.
IDR forgiveness requires 20-25 years of payments.
Teacher Loan Forgiveness requires 5 years of teaching.
Step 4: Apply
Use the official application form for your program.
Provide employment certification and loan details.
Step 5: Follow Up with Your Loan Servicer
Check your loan status from time to time
Maintain records of each payment and document - Private Student Loans
These do not qualify for federal forgiveness programs but you can
???? Refinance at a cheaper interest rate.
???? Ask your employer if they have student loan repayment benefits
???? You can apply for state-based loan repayment assistance programs
Conclusion
Forgiveness programs under student loans may significantly reduce or even eliminate the debt. Eligibility and the process of applying for forgiveness also vary. There are some jobs that qualify one for relief: public service, education, or healthcare.
How to succeed:
✅ Familiarize yourself with the requirements of your program.
✅ Make qualifying payments on time.
✅ File the required forms regularly.
✅ Keep in touch with your loan servicer.
Take advantage of all these programs for your way to financial freedom and a debt-free future!
FAQs
- How long does it take to get student loan forgiveness?
This would depend on what program you are applying to. It takes 10 years in PSLF, 5 years for Teacher Loan Forgiveness, and 20–25 years with IDR forgiveness. - Can I apply to all of these student loan forgiveness programs?
You can qualify for various types of programs; however, certain ones cannot be used in tandem, such as PSLF and Teacher Loan Forgiveness. - If my loan forgiveness application is rejected?
If denied, you must review your application for errors, or you could seek other types of forgiveness available. You are also allowed to appeal the rejection. - Do student loan forgiveness programs forgive private loans?
No, they do not apply to private loans. - Are forgiven student loans taxable?
Yes, forgiveness student loans will be taxed
Most federal loan forgiveness programs are tax-free, but always refer to IRS guidelines.