Student Loan Forgiveness: Programs, Eligibility, and How to Apply

What Is Student Loan Forgiveness?

Student loan forgiveness is the cancellation of part or all of a borrower’s federal student loan debt. It is typically available to those with eligible federal loans—such as federal Direct Loans—who work in certain professions and make qualifying payments under an eligible repayment plan over a specific period of time.

Personal loans are not eligible for federal student loan forgiveness programs. Private student loans also generally do not qualify. Forgiving a personal loan is a different process, and the information on this page applies only to federal student loans.

Sources: SoFi, National Education Association

Public Service Loan Forgiveness (PSLF)

PSLF forgives the entire remaining balance of your Direct Loans after you make 120 qualifying monthly payments while working full-time for a qualifying government or not-for-profit organization. To benefit, you must repay your loans under an income-driven repayment (IDR) plan or the standard 10-year plan.

Only federal Direct Loans qualify for PSLF. If you have other federal loans like FFEL or Perkins Loans, you may qualify by consolidating them into a new federal Direct Consolidation Loan. The forgiven amount under PSLF is not considered taxable income by the IRS.

Effective July 1, 2026, a PSLF qualifying payment must be made on time (on or before the due date); the previous 15-day grace period has been eliminated, according to the National Education Association.

• Must work full-time for a qualifying government or not-for-profit employer. Some not-for-profit organizations other than 501(c)(3) may also qualify.
• Must have Direct Loans (or consolidate to make eligible).
• Must make 120 qualifying payments under an IDR plan or the standard 10-year plan.
• Forgiven amount is not taxable.

Sources: Federal Student Aid (U.S. Department of Education), Consumer Financial Protection Bureau, National Education Association

Teacher Loan Forgiveness

Teacher Loan Forgiveness (TLF) forgives up to $17,500 of your Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans. This amount is available to highly qualified special education teachers and secondary mathematics or science teachers.

To qualify, you must be a full-time, highly qualified teacher for five complete and consecutive years at an eligible low-income school or educational service agency. You may not receive a benefit under both TLF and PSLF for the same period of teaching service.

Sources: Federal Student Aid (U.S. Department of Education), Student Loan Borrower Assistance (National Consumer Law Center)

Income-Driven Repayment (IDR) Forgiveness

Under an income-driven repayment (IDR) plan, your monthly payment is based on your income and family size. If your federal student loans are not fully repaid at the end of the plan’s repayment period—after 20 or 25 years (240 or 300 monthly payments)—the remaining balance is forgiven.

There is no limit on how much forgiveness you receive under an IDR plan as long as you meet the requirements.

According to TICAS and Tateesq, debt discharged under income-driven repayment plans is taxable again as of January 1, 2026; it was temporarily non-taxable for several years before.

Sources: Federal Student Aid (U.S. Department of Education), Consumer Financial Protection Bureau, The Institute for College Access & Success (TICAS), Tateesq.com (Stanley Tate, JD, Student Loan Lawyer)

Other Discharge Options

Beyond forgiveness programs, there are discharge options that cancel federal student loans under specific circumstances:

Borrower defense to repayment, which allows you to seek discharge of your Direct Loans if you believe your school misled you or violated certain laws. Total and Permanent Disability (TPD) discharge is available if you have a disability that severely limits your ability to work, now and in the future, and you provide the required proof. Some individuals are automatically identified by the Social Security Administration or Veterans Affairs.

If your school closes while you’re enrolled or soon after you withdraw, you may be eligible for closed school discharge of your federal student loan, provided you meet certain requirements.

Military service members may benefit from interest rate caps under the Servicemembers Civil Relief Act and Department of Defense student loan repayment programs. Additionally, military service and AmeriCorps service can count toward PSLF, and the Segal AmeriCorps Education Award can be used to repay qualified student loans after completing a term of national service.

• Borrower defense to repayment
• Total and Permanent Disability discharge
• Closed school discharge
• Military-related benefits
• AmeriCorps awards

Sources: Federal Student Aid (U.S. Department of Education)

How to Apply for Forgiveness

Each forgiveness program has its own application process.

For PSLF, the U.S. Department of Education’s PSLF Help Tool allows you to search for qualifying employers and to submit PSLF forms digitally. You will need your employer’s Federal Employer Identification Number (FEIN/EIN), which can be found on your W-2. You should submit a PSLF form each year and whenever you change jobs to ensure your 120 qualifying payments are tracked toward forgiveness. The Department of Education’s payment tracking tool was taken down in April 2025 and is not expected to return, so keep your own records of employment and payments.

For Teacher Loan Forgiveness, after completing five years of qualifying teaching, you can apply by submitting a completed Teacher Loan Forgiveness Application to your loan servicer. The certification section must be completed by the chief administrative officer of the school or educational service agency where you completed your qualifying teaching service.

For discharge options such as Total and Permanent Disability, closed school, or borrower defense, you must apply through the U.S. Department of Education’s discharge application processes, providing the required documentation. Specific forms and requirements vary by program.

Remember: You never have to pay for help with your student loans. Federal student aid processes are free, and beware of scams.

Sources: Federal Student Aid (U.S. Department of Education), Consumer Financial Protection Bureau, Student Loan Borrower Assistance (National Consumer Law Center)

Common Pitfalls and Mistakes

One common mistake is assuming that personal loans or private student loans qualify for federal forgiveness—they do not. Another is failing to meet the specific requirements of a program, such as choosing a repayment plan that does not count toward PSLF.

With the recent policy changes, the SAVE plan ended July 1, 2026. Borrowers were given 90 days to choose a new repayment plan or be automatically assigned to the Standard Tiered Repayment Plan, which does not qualify for PSLF. This means many borrowers may have lost qualifying payment status if they did not act, according to NEA, TICAS, and Tateesq.

Never pay for help with your student loans. You never have to pay for help; beware of scams.

Sources: Federal Student Aid (U.S. Department of Education), Consumer Financial Protection Bureau, National Education Association, The Institute for College Access & Success (TICAS), Tateesq.com (Stanley Tate, JD, Student Loan Lawyer)