Student loan forgiveness: What it is and who is eligible

For those with student loan debt, student loan forgiveness can be life-changing. However, though some student loan forgiveness programs do exist, not everyone will qualify for them, and they're usually only available to federal loan borrowers.

Here's what you need to know about student loan forgiveness.

What is student loan forgiveness?

If you qualify for a student loan forgiveness program, the lender forgives the remaining loan balance, and you're no longer responsible for repayment. The loan will show up as paid in full on your credit report.

Usually, only federal loan borrowers are eligible for loan forgiveness. For private student loan borrowers, there may be programs at the state level, but they tend to be limited to health care or education professionals, and the programs only forgive a portion of your outstanding debt. In extenuating circumstances, private lenders may offer loan forgiveness in cases of death or permanent disability.

Below we explore the federal student loan forgiveness programs for public service professionals, teachers and health care workers.

Public Service Loan Forgiveness program

Public Service Loan Forgiveness (PSLF) is a program for those who work in public service, such as government and nonprofit organization employees. Under PSLF, you may be eligible for loan forgiveness if you have federal student loans and work for an eligible employer full time for 10 years and make 120 qualifying monthly payments. At the end of the 10-year period and payment count, the loan is discharged tax free.

Currently, qualifying payments include those made under income-driven repayment plans like Saving on a Valuable Education (SAVE), income-contingent repayment (ICR), income-based repayment (IBR) and Pay As You Earn (PAYE). However, the One Big Beautiful Bill Act eliminated some of those plans. To qualify for PSLF, borrowers must be enrolled in income-based repayment or the new Repayment Assistance Plan.

For loans taken out on or after July 1, 2026, only the Repayment Assistance Plan will be available. For those with existing loans, borrowers will have to transition to a new repayment plan by July 1, 2028. You can use the federal PSLF Help Tool to make sure your loans, employment and payment plan meet the requirements for PSLF.

Teacher student loan forgiveness

If you're a highly qualified teacher who works in a low-income school or educational service agency, you may qualify for Teacher Loan Forgiveness. Under this program, up to $17,500 of your Direct Subsidized and Unsubsidized Loans could be forgiven after teaching full-time for five consecutive academic years.

Highly qualified teachers are defined as individuals who:

• Have at least a bachelor's degree
• Received full state certification
• Have not had their certifications or licenses waived on an emergency, temporary, or provisional basis

Only math, science or special education teachers qualify for the full $17,500 of loan forgiveness. If you teach another subject, you may qualify for up to $5,000 in loan forgiveness as long as you’re a full-time elementary or secondary school teacher.

You can apply for Teacher Loan Forgiveness once you've completed the required five years of service.

Borrowers can't receive credit for both Teacher Loan Forgiveness and PSLF at the same time; for example, if you take advantage of Teacher Loan Forgiveness, the five years you spent teaching for that program will not count toward the 10 years required for PSLF.

Some states have their own loan repayment programs for teachers, so visit your state education agency to find out if there is a program in your area.

Student loan forgiveness programs for health care professionals

A number of student loan forgiveness programs at the national and state levels are available to health care professionals, including PSLF if you work for a federal government organization or qualifying nonprofit. Federal Perkins Loan Cancellation is also open to full time health care providers regardless of field.

Other student loan forgiveness programs for health care providers are available:

• The Nurse Corps Loan Repayment Program is a program geared toward registered nurses and advanced practice registered nurses in underserved communities in critical shortage facilities. Approved program employees may have 60% of their loans paid off after two years of qualifying employment and an additional 25% paid off after the third.
• The National Health Service Corps Loan Repayment Program awards up to $75,000 over two years for full-time primary care providers (up to $80,000 for those proficient in Spanish) and up to $37,500 for part-time primary care providers. Those proficient in Spanish can qualify for up to $80,000 for full-time service, and up to $42,500 for half-time service. Other care providers, such as midwives, dental hygienists and mental health therapists, can qualify for up to $50,000 for two years of full-time service, and up to $25,000 for two years of part-time service.

Local forgiveness programs may be available at the state level too. Check with your state and local officials for specific information on what your area offers for health care providers.

Income-Driven Repayment Plan

Currently, borrowers can qualify for loan forgiveness if they're enrolled in a federal income-driven repayment plan after 20 to 25 years of payments. However, there are significant changes coming to these plans: the One Big Beautiful Bill Act ended SAVE, and ICR, IBR and PAYE will be phased out.

For loans taken out on or after July 1, 2026, there will only be one new option: the Repayment Assistance Plan. This plan bases your payments on your loan balance and a percentage of your income, and borrowers only qualify for loan forgiveness after 30 years.

Existing loan borrowers on an IDR plan will have to switch to IBR or the new Repayment Assistance Plan by July 1, 2028.

Other student loan forgiveness circumstances

Federal loan borrowers can qualify for student loan discharge if they become disabled through the federal Total and Permanent Disability program. This program forgives the remaining balance on federal student loans for borrowers who are unable to work due to a severe, long-term disability. To qualify, borrowers must provide documentation from the U.S. Department of Veterans Affairs (VA), the Social Security Administration (SSA), or a physician certifying that they are totally and permanently disabled. Once approved, the discharge process is handled by the U.S. Department of Education, and borrowers are no longer required to make payments.

Are Parent PLUS loans eligible for forgiveness?

Under the current loan system, Parent PLUS loan borrowers could qualify for PSLF and income-driven repayment forgiveness if they first consolidated their loans with Direct Consolidation Loans, enrolled in ICR and met the program's payment or employment requirements. Going forward, that will no longer be the case.

Parents who take out Parent PLUS loans on or after July 1, 2026, will only be eligible for the new standard repayment plan, so they'll no longer be eligible for PSLF or income-driven repayment forgiveness.

Existing borrowers should consolidate their loans and enroll in ICR before that date to retain their eligibility for loan forgiveness.

Private student loan forgiveness programs

While no standard forgiveness program for private student loans exists, some states offer private student loan forgiveness for people working in an in-demand field or a high-need area. Lawyers, teachers, doctors, dentists, nurses and veterinarians could qualify for these state repayment assistance programs. To find out if your state offers a loan repayment assistance program for your occupation, visit your state's department of education website.

Ready to tackle your student loan debt?

If you don't qualify for student loan forgiveness, you have other options for reducing your debt. One of those options is to refinance your student loans.

Refinancing can help by consolidating multiple loans into a single payment, reducing monthly payments or obtaining a new term to pay off loans faster. However, keep in mind that if you refinance federal student loans with a private student loan, you'll lose the benefits federal student loans offer, such as income-based repayment and loan forgiveness.† Make sure you understand all your options and learn more about student loan refinancing to see if it makes sense for your situation.

Get your rate and learn more to see if student loan refinancing is right for you.