Which Student Loan Forgiveness Programs Are You Eligible For?

Overview of Student Loan Forgiveness

Student loan forgiveness programs cancel some or all of your remaining federal student loan balance after you meet certain requirements. Forgiveness is not automatic—you must apply and qualify. The program you choose depends on your career, employer, loan type, and repayment history.

As of 2026, the main avenues for forgiveness include Public Service Loan Forgiveness, Teacher Loan Forgiveness, income-driven repayment discharge, and several profession-specific programs. Private student loans are not eligible for any federal forgiveness program.

Public Service Loan Forgiveness (PSLF)

PSLF is the most widely known forgiveness program. It cancels the remaining balance on your Direct Loans after you make 120 qualifying monthly payments (10 years) while working full-time for an eligible employer.

Eligible Employers

• Government organizations at any level (federal, state, local, tribal)
• Nonprofit organizations with 501(c)(3) status
• Other nonprofits that provide qualifying public services (public health, public safety, education, etc.)

Qualifying Payments

Payments must be made under an income-driven repayment plan or the standard 10-year plan. They do not need to be consecutive. If you leave public service and return later, you can pick up where you left off.

Forgiveness under PSLF is tax-free—a major advantage over IDR forgiveness.

Teacher Loan Forgiveness

Teachers who work full-time for five consecutive years at a low-income school or educational service agency may qualify for up to $17,500 in forgiveness on Direct Subsidized and Unsubsidized Loans.

Note: You cannot count the same years of service toward both PSLF and Teacher Loan Forgiveness. For most teachers, PSLF will result in more forgiveness over time because it cancels the entire remaining balance.

IDR Forgiveness (Income-Driven Repayment Discharge)

All four income-driven repayment plans offer forgiveness of the remaining balance after 20 or 25 years of qualifying payments. The SAVE plan offers forgiveness in as few as 10 years for borrowers with original balances of $12,000 or less.

Unlike PSLF, forgiven balances under IDR programs may be treated as taxable income in the year of forgiveness. If you owe $50,000 and it is forgiven, you could owe $11,000–15,000 in federal income taxes depending on your tax bracket. Plan ahead by saving in a dedicated account during your repayment period.

Perkins Loan Cancellation

If you have older Federal Perkins Loans (the program ended in 2017), you may qualify for cancellation based on your profession. Eligible careers include:

• Teachers in low-income or subject-shortage areas
• Nurses and medical technicians
• Law enforcement officers and firefighters
• Military service members
• Head Start and early childhood educators

Perkins cancellation works on a sliding scale: 15% of the balance is canceled per year for the first two years, 20% for the next two years, and 30% in the fifth year—for a total of 100% over five years.

Military Service Loan Forgiveness

Service members may qualify for several types of relief:

• SCRA (Servicemembers Civil Relief Act): Caps interest at 6% on loans taken out before active duty
• Total and Permanent Disability Discharge: For veterans with a service-connected disability rated 100% by the VA
• PSLF for military: Active duty service qualifies as public service employment
• National Guard/Reserve: Some states offer additional loan repayment assistance

State-Based Forgiveness and Repayment Assistance

Many states offer their own loan repayment assistance programs (LRAPs) for professionals who work in underserved areas. These vary widely but often target:

• Primary care doctors and dentists in rural health shortage areas
• Attorneys working in legal aid
• Mental health counselors in public agencies
• Nurses in rural hospitals

To find your state’s programs, search the Association of American Medical Colleges AAMC database or your state’s department of health or higher education website.

Employer Student Loan Repayment Benefits

Under current tax law, employers can contribute up to $5,250 per year tax-free toward employee student loans. Many large employers—including Amazon, Google, Fidelity, and Aetna—offer this benefit. Check your employee benefits portal or ask HR if this is available to you.

Borrower Defense to Repayment

If your school misled you about job placement rates, accreditation status, or the quality of its programs, you may be eligible for Borrower Defense discharge. This program has primarily benefited former students of for-profit colleges that closed or engaged in deceptive practices.

Total and Permanent Disability Discharge

Borrowers who are totally and permanently disabled can have all federal student loans and TEACH Grant service obligations discharged. Documentation can come from the VA, the Social Security Administration, or a physician.

How to Apply

Each program has its own application process:

• PSLF: Submit the Employment Certification Form annually at studentaid.gov and apply for forgiveness after 120 payments
• Teacher Loan Forgiveness: Complete the Teacher Loan Forgiveness Application and have your chief administrative officer certify your employment
• IDR Forgiveness: Automatic at the end of the repayment period; no application needed
• TPD Discharge: Apply at disabilitydischarge.com