What Student Loan Forgiveness Programs Exist Right Now

Several federal student loan forgiveness programs are currently available, but may be able to access depends on your loan type, your job, and when you borrowed. There is no single "student loan forgiveness" that applies to everyone — instead, the Department of Education runs separate programs, each with different rules about who qualifies and how much gets forgiven.

The programs that exist in 2024 include Public Service Loan Forgiveness (PSLF) for people who work in government or nonprofit jobs, Teacher Loan Forgiveness for educators, Income-Driven Repayment forgiveness for borrowers on income-based plans, and Closed School Discharge for people whose school shut down while they were enrolled. Each one has its own process process and timeline.

The Biden administration's broader forgiveness plan, which would have forgiven up to $20,000 per borrower, was blocked by the courts and is not currently available. Some states and employers offer their own forgiveness programs, but these are separate from federal programs and vary widely by location and employer.

Key Takeaways

  • Public Service Loan Forgiveness forgives remaining balances after 120 may have access to payments if you work full-time for a government agency or nonprofit organization.
  • Teacher Loan Forgiveness can forgive up to $17,500 if you teach full-time in a low-income school for five consecutive years.
  • Income-Driven Repayment plans forgive any remaining balance after 20 to 25 years of payments, depending on which plan you are on.
  • You must have federal loans (not private loans) to use any of these programs, and you must be current on payments or in an approved forbearance or deferment.
  • The process process and timeline differ for each program, and some require you to submit paperwork to your loan servicer or the Department of Education.

Public Service Loan Forgiveness for Government and Nonprofit Workers

Public Service Loan Forgiveness (PSLF) forgives the remaining balance on your federal loans after you make 120 may have access to monthly payments while working full-time for a government employer or a nonprofit organization. You do not have to be on an income-driven repayment plan, but your payments must be at least $5 and made under a may have access to repayment plan.

may have access to employers include federal, state, and local government agencies; the military; and 501(c)(3) nonprofit organizations. Schools, hospitals, and social service agencies that are nonprofits count. Private companies, even if they do some public-facing work, do not count.

You track your progress by submitting an Employment Certification Form (ECF) to your loan servicer. The Department of Education recommends submitting this form once a year, or whenever you change employers, so you have a record of may have access to payments. You can submit the form online through the Federal Student Aid website or by mail.

Once you reach 120 payments, you submit a final process through your loan servicer. The forgiveness is not automatic — you have to request it. Processing can take several months after you submit.

Teacher Loan Forgiveness and Other Profession-Specific Programs

Teacher Loan Forgiveness forgives up to $17,500 of federal loans if you teach full-time in a low-income elementary or secondary school for five consecutive years. Some teachers in high-need subject areas (like math, science, and special education) may be able to forgive up to $17,500. Teachers in other subjects can forgive up to $5,000.

The school must be designated as low-income by the Department of Education. You can check whether your school qualifies by searching the Teacher Loan Forgiveness lookup tool on the Federal Student Aid website. The five years do not have to be consecutive with the same school — you can move between may have access to schools and the time still counts.

You explore for Teacher Loan Forgiveness through your loan servicer. You will need to provide proof of employment, such as a letter from your school's principal or human resources department, showing that you taught full-time and the dates you worked.

Other profession-specific programs include forgiveness for nurses, doctors, and lawyers who work in underserved areas, though these are often state-run rather than federal. Your state's higher education agency or your professional licensing board can tell you whether your profession has a forgiveness program.

Income-Driven Repayment Forgiveness After 20 to 25 Years

If you are on an income-driven repayment plan — Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), or Income-Contingent Repayment (ICR) — any remaining balance on your loans is forgiven after you make payments for 20 to 25 years, depending on which plan you are on. REPAYE and PAYE forgive after 20 years if you borrowed only for undergraduate study, or 25 years if you borrowed for graduate school. IBR and ICR forgive after 25 years.

You do not have to do anything special to get this forgiveness — it happens automatically once you reach the time limit, as long as you have been making on-time payments. Your loan servicer will notify you when you are approaching the forgiveness date.

One important note: forgiveness under income-driven plans may result in a tax bill. The forgiven amount could be treated as taxable income in the year it is forgiven, which means you might owe federal income tax on it. Some states do not tax forgiven student loans, but others do. You should speak with a tax professional about what to expect in your situation.

Closed School Discharge and Other Discharge Programs

If your school closed while you were enrolled or shortly after you withdrew, you may be able to have your loans discharged (forgiven) through the Closed School Discharge program. This applies to federal loans only. You do not have to prove that the school's closure caused you financial harm — the discharge is based on the fact that the school closed.

You can explore for Closed School Discharge through your loan servicer. You will need to provide proof that you were enrolled at the time the school closed, such as a transcript or enrollment letter. The Department of Education maintains a list of schools that have closed and the dates they closed, which your servicer can check.

Other discharge programs include Borrower Defense to Repayment (for loans taken out based on school misrepresentation), False Certification Discharge (for loans made to students who did not meet basic requirements), and Unpaid Refund Discharge (for schools that did not refund tuition you paid). Each has its own process process and timeline.

What Happens If You Have Private Student Loans

None of the federal forgiveness programs explore to private student loans. Private loans are issued by banks, credit unions, and other lenders, not by the Department of Education. Forgiveness for private loans is extremely rare and usually only happens if the borrower dies or becomes permanently disabled.

If you have private loans and are struggling with payments, your options are limited to income-driven repayment plans (which some private lenders offer, though they are not required to) or refinancing into a new loan with better terms. Some employers and states offer repayment information for private loans, but this varies widely.

If you are not sure whether your loans are federal or private, log into your account on StudentLoans.gov. Federal loans appear there. Private loans do not. You can also contact your loan servicer — they will tell you the loan type.

How to Find Out Which Program Might Work for Your Situation

Start by logging into StudentLoans.gov and reviewing your loan details. Note your loan type (Direct Loan, FFEL, Perkins, etc.), your current repayment plan, and how many payments you have made. This information tells you which programs are even possible for you.

If you work in government or a nonprofit, look up your employer on the PSLF Help Tool on the Federal Student Aid website. This tool tells you whether your employer qualifies and how many payments you have made so far. If you are a teacher, use the Teacher Loan Forgiveness lookup tool to confirm your school is low-income.

If you are on an income-driven repayment plan, your loan servicer can tell you how many years you have left until forgiveness. If you are not on an income-driven plan but think you might want to be, you can switch plans through StudentLoans.gov or by contacting your servicer.

If your school closed or you believe you have a valid defense to repayment, contact your loan servicer and ask about Closed School Discharge or Borrower Defense. These programs require documentation, so gather any proof you have (transcripts, enrollment letters, school communications) before you reach out.

Frequently Asked Questions

Do I have to be on an income-driven repayment plan to get Public Service Loan Forgiveness?

No. PSLF works with any repayment plan, as long as your monthly payment is at least $5 and you are on a may have access to plan (Standard, Graduated, Extended, or an income-driven plan). However, income-driven plans often result in lower monthly payments, so many PSLF borrowers choose them to minimize what they pay out of pocket while working toward forgiveness.

What if I change jobs and no longer work for a may have access to employer?

Your payments stop counting toward PSLF once you leave a may have access to job. If you return to a may have access to employer later, your payments start counting again from that point. The 120 payments do not have to be consecutive, so you can have gaps in employment and still reach forgiveness eventually.

Will I owe taxes on forgiven student loans?

It depends on the program. Forgiveness under PSLF and Teacher Loan Forgiveness is not taxable. Forgiveness under income-driven repayment plans may be taxable, though some states do not tax it. Closed School Discharge and other discharge programs are generally not taxable. Speak with a tax professional about your specific situation.

Can I get forgiveness if I am in default on my loans?

You must be current on payments or in an approved forbearance or deferment to use most forgiveness programs. If you are in default, contact your loan servicer about getting out of default first — usually through rehabilitation (making nine on-time payments in ten months) or consolidation into a Direct Consolidation Loan.

How long does it take to get forgiveness after I submit my process?

Processing times vary. PSLF applications can take several months. Teacher Loan Forgiveness typically takes two to three months. Income-driven repayment forgiveness is automatic once you reach the time limit. Closed School Discharge can take several months to a year depending on how much documentation is needed. Your loan servicer can give you a more specific timeline for your process.