How to Obtain Student Loan Forgiveness

Depending on factors like your occupation, loan type, and income level, you may qualify for full or partial forgiveness of your federal student loan debt through various government programs.

 

How can I determine my eligibility?

 

Your eligibility to have federal student loan debt fully or partially forgiven depends on factors such as your occupation, the type of loan you have, and your income level. To explore the eligibility criteria for various forgiveness programs, please follow the links to our resources below and assess whether you meet the requirements for each program.

 

- Income-driven Repayment (IDR) eligibility

- Public Service Loan Forgiveness (PSLF) eligibility

- Nurse Corps Loan Repayment Program (LRP) eligibility

- Teacher Loan Forgiveness eligibility

 

Additionally, you can schedule a free 30-minute consultation with one of our student loan specialists at GradFin2 to learn more about potential forgiveness options and how to qualify. Please note that these programs are only applicable to federal student loans; private student loans do not qualify for forgiveness.

 

 

**Forgiveness Programs to Consider**

 

As you explore your options, you may want to consider several federal student loan forgiveness programs based on your profession:

 

1. **Public Service Loan Forgiveness (PSLF)** – This program is available exclusively to full-time employees of the government or qualifying nonprofit organizations. It offers forgiveness after 10 years of qualifying payments.

 

2. **Income-Driven Repayment Plan (IDR)** – IDR plans include four different options that provide forgiveness after 20 or 25 years of repayment, depending on the plan selected.

 

3. **Teacher Loan Forgiveness Program** – This program is specifically for full-time teachers serving in low-income school districts.

 

Additionally, nurses may want to explore the Nurse Corps Loan Repayment Program (Nurse Corps LRP). Managed by the Health Services and Resources Administration (HRSA), a branch of the government separate from the Department of Education, this program offers varying percentages of forgiveness based on the length of employment. Let's examine each program in more detail.

 

Public Service Loan Forgiveness (PSLF)

 

Public sector professionals—such as doctors, nurses, first responders, and teachers—who are employed by qualifying nonprofit organizations and government entities may be eligible for PSLF. This program allows borrowers to have their Federal Direct Loans forgiven after ten years of qualifying payments ( 120 payments in total) made under an IDR plan.

 

The requirements for PSLF can be complex and may change over time. For instance, if you have federal student loans other than Federal Direct Loans, you could still qualify for PSLF by consolidating them into Federal Direct Loans.

 

To learn more about PSLF, visit our website or contact our GradFin specialists for a free consultation to address your questions. For the latest information on the PSLF program, visit the Federal Student Aid website at studentaid.gov/publicservice.

 

Income-Driven Repayment Plans (IDR)

 

Unlike PSLF, IDR plans are not limited by your employer and are available to borrowers in the private sector. IDR plans offer forgiveness on your remaining loan balance after 20 or 25 years of repayment, depending on the plan you choose.

 

Your monthly payment under the various IDR plans is calculated based on several factors, including your family size and discretionary income. Choosing the right IDR plan will depend on your personal financial situation, so it's important to weigh the pros and cons of each option before making a decision.

 

 

**Student Loan Forgiveness for Nurses**

 

Nurses with student loan debt have several options for forgiveness. In addition to the Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) plans, nurses can consider the Nurse Corps Loan Repayment Program, offered through the federal Health Resources & Services Administration. This program can cover up to 85% of student loan debt for qualified nurses who commit to working for at least two years in one of the following settings:

 

- A Critical Shortage Facility (CSF)

- An eligible nursing school as nurse faculty (NF)

 

After completing the initial two-year service contract, you may be eligible for a third year, which could allow for an additional 25% of your loans to be forgiven. For more information, review the Nurse Corps Loan Repayment Program Fact Sheet.

 

**Teacher Loan Forgiveness Program**

 

If you are a teacher with federal student loans, you might qualify for the Teacher Loan Forgiveness Program. This program offers up to $17,500 in student loan forgiveness for highly qualified teachers who work full-time at a low-income school or educational service agency for five consecutive academic years and meet additional qualifications. You may receive up to $17,500 in forgiveness if you have served as:

 

- A highly qualified full-time mathematics or science teacher at the secondary school level; or

- A highly qualified special education teacher at either the elementary or secondary level.

 

Teachers not involved in mathematics, science, or special education may still qualify for up to $5,000 in forgiveness if they are highly qualified full-time elementary or secondary education teachers.

 

It's important to note that you can potentially receive forgiveness under both the Teacher Loan Forgiveness Program and the PSLF program, but not for the same teaching service period. Additionally, any time spent teaching to earn benefits through AmeriCorps cannot be counted toward the required five years of teaching for Teacher Loan Forgiveness. Learn more about the details and eligibility requirements for the Teacher Loan Forgiveness Program.

 

**Federal Student Loan Cancellation and Discharge**

 

In addition to forgiveness, you may also seek relief from student loan debt through cancellation or discharge. Although these terms refer to different programs, they essentially indicate the end of your obligation to repay loan debt. Below are examples of cancellation programs.

 

**Perkins Loan Cancellation**

 

If you have Perkins Loans, you may be eligible for Perkins Loan Cancellation if you engage in eligible public service or volunteer work. These programs provide partial or full cancellation of Perkins loans based on specific service types, such as teaching at a Title I school or working in law enforcement. For more information, visit the Student Aid website.

 

**Closed School Discharge**

 

 

In certain uncommon situations, your federal loans may be discharged, meaning you will no longer be obligated to repay them. Conditions that may lead to discharge include bankruptcy, disability, and school closure. If your school closes while you are enrolled or shortly after you leave, and you still have federal loans outstanding, the government may forgive all or part of those loans, depending on the timing of the closure in relation to when you took out your loans. Learn more about this process.