13 Student Loan Forgiveness Programs: How To Qualify for 2025
Student Finance & Loan Expert
Hanson reports that by 2021, about 476,631 students had their loans forgiven through federal student loan forgiveness programs. With the Biden-Harris Administration’s recent expansion to the federal debt relief budget, these programs can relieve millions more from ballooning debt.
If you are curious whether you qualify for student loan forgiveness, it may be helpful to know about the types of programs available, the prerequisites for application, and how much of your loan can be forgiven.
Key Things You Should Know About Student Loan Forgiveness Programs for 2025
- Student loan forgiveness programs are designed to relieve borrowers of their loan obligations, partially or in full.
- Loan forgiveness is typically available to essential workers, like teachers and healthcare professionals, and those affected by misconduct or school closures.
- Federal forgiveness programs do not apply to private loans.
- Forgiven loans may be taxable depending on state laws, though federal taxes do not apply.
Table of Contents
- How does student loan forgiveness work?
- What are the student loan forgiveness programs available?
- List of Student Loan Forgiveness Programs for 2025
- Who is eligible for student loan forgiveness?
- How do I check if I qualify for any student loan forgiveness programs?
- What steps should I take to apply for student loan forgiveness?
- Is it possible to get 100% student loan forgiveness?
- How Can Career School Students Augment Loan Forgiveness with Financial Aid?
- How do enrollment policies impact student loan forgiveness eligibility?
- Can Certification Programs Enhance Your Career and Accelerate Loan Repayment?
- Can Accelerated Degree Programs Influence My Student Loan Forgiveness Strategy?
- Do I have to pay taxes if my student loan is forgiven?
- What are some alternatives to student loan forgiveness?
- Understanding Specialized Career Pathways and Student Loan Solutions
- Strategies for Managing Student Loan Payments While in School
- Will Loan Forgiveness Impact My Future Financial Planning?
- Should I consider private loans for college as a complementary option?
- Can I Use Student Loans to Cover Living Expenses as an Adult?
- Are there any hidden risks with student loan forgiveness programs?
- What Documentation Do I Need to Successfully Apply for Student Loan Forgiveness?
- Other Things You Should Know About Student Loan Forgiveness Programs
How does student loan forgiveness work?
When you take out a student loan, the question of how much does a bachelor's degree cost is more complicated. Aside from the cost of tuition, room and board, and transportation, you must consider the interest rate of your loan and how payments can balloon over time.
To encourage students to pursue further education, the Office of Federal Student Aid (FSA) provides students with over $114 billion in grants, work-study, and loan funds annually.
Many students rely on loans, but they can be challenging to repay as interest accumulates. This is why the government has created student loan forgiveness programs to relieve qualified borrowers of ballooning debt, where a portion or all of a loan is released from repayment, either partially or fully.
What students have to say about their loan forgiveness
"Getting my student loans forgiven was a welcome benefit from my time in the military. I can settle into my civilian life with a clean financial slate and pursue my dream career." - David
"I got my loans forgiven after years of consistent payments and I can finally breathe a sigh of relief. I can now focus on my students without worrying about the mountain of debt hanging over my head." - Bailey
"I was glad to find out I qualified for student loan forgiveness programs after years in social work. It is such a big relief on my monthly budget." - Amara
What are the student loan forgiveness programs available?
Aside from supporting Title 1 schools, the federal government offers financial aid like student loan forgiveness programs for students in college or career school. These are typically extended to those with a good payment history and essential workers, like teachers, who commit to work in underserved areas. Those not covered by loan forgiveness programs may be covered by loan repayment assistance programs.
Some programs, like income-driven repayment plans, are not contingent on profession. Of these, Saving on a Valuable Education (SAVE) is the most popular with over $429 billion disbursed in student loans. The chart below shows the loan balances for different income-driven repayment plans, which result in forgiveness.
You can also look at student loan discharge programs. These programs apply to borrowers who cannot repay their loans due to situations beyond their control. Discharge is available in cases of death or total and permanent disability, and in other cases like school closure or fraud.
List of 13 Student Loan Forgiveness Programs for 2025
While it is ideal to think about what is the best way to save for college before the time to enroll comes around, not everyone has cash on hand to pay. This is why many students opt to take out loans, and then apply for student loan forgiveness programs. To help you weigh your options, our team has compiled a list of student loan forgiveness, repayment assistance, and loan discharge programs for federal borrowers.
Income-Driven Repayment Plan
Income-driven repayment (IDR) plans aim to make loan payments more affordable by capping them at 10% to 20% of the borrower's discretionary income. These plans base monthly payments on income and family size, which must be updated annually. After the repayment period in an IDR plan expires, any remaining balance is forgiven.
- Forgiveness Amount: Full or partial loan amount
- Who Qualifies: Borrowers who have made 20 to 25 years of qualifying payments under certain plans
- How to Apply: Through your loan servicer
Federal Perkins Loan Cancellation
The Perkins Loan Program provided low-interest-rate loans to students with exceptional financial need. It was dissolved in 2017, but borrowers with existing balances on their loans can get up to 100% forgiveness on their loan balances after working in public service. Unlike other loan forgiveness programs, Perkins Loan cancellation happens in increments rather than as a lump sum.
- Forgiveness Amount: Full or partial loan balance
- Who Qualifies: Borrowers who have worked in a qualifying public service occupation for at least five years
- How to Apply: Contact the school that made the loan
Direct Loan Public Service Loan Forgiveness
The Public Service Loan Forgiveness Program eliminates the remaining balance on federal Direct Loans for qualifying borrowers. To be eligible, borrowers must work full-time for a government or non-profit organization and make 120 on-time monthly payments under an approved repayment plan. When your loan balance is forgiven through the PSLF program, the forgiven amount is not taxable as income.
- Forgiveness Amount: Partial loan forgiveness
- Who Qualifies: Direct Loan borrowers working for government or non-profit organizations
- How to Apply: Use the PSLF Help Tool
Teacher Loan Forgiveness
The federal Teacher Loan Forgiveness Program offers debt relief to educators working full-time for five consecutive years in low-income schools or qualifying educational agencies. Eligible borrowers can receive up to $17,500 in loan forgiveness on their federal Direct Loans or Stafford Loans.
- Forgiveness Amount: Up to $17,500
- Who Qualifies: Teachers working full-time in qualifying educational settings for five consecutive years
- How to Apply: Through your loan servicer
NHSC Loan Repayment Program
The NHSC Loan Repayment Program provides financial aid to primary care healthcare workers who agree to work in underserved areas. Borrowers can receive loan forgiveness of up to $80,000 after two years of service at an NHSC-approved site in a Health Professional Shortage Area (HPSA). As of 2024, primary care providers and practitioners with Spanish language proficiency can qualify for the highest amounts of forgiveness.
- Forgiveness Amount: Up to $80,000 for primary care workers; up to $50,000 for mental or behavioral health care providers
- Who Qualifies: Healthcare practitioners working in underserved areas
- How to Apply: Online
Armed Forces Education Loan Repayment Program
The Army College Loan Repayment Program incentivizes qualified recruits by repaying a portion of their student loans. This program applies to individuals entering certain military occupational specialties (MOS). To remain covered, soldiers must maintain qualification in their MOS throughout their initial enlistment period.
- Forgiveness Amount: Up to a third of the outstanding principal balance, less taxes
- Who Qualifies: Active duty soldiers with a qualifying occupational specialty
- How to Apply: Through your loan servicer
Borrower Defense to Repayment
The Borrower Defense to Repayment Program offers loan forgiveness for borrowers who believe their school engaged in misconduct that significantly impacted their decision to enroll. This program applies to Federal Direct Loans and requires borrowers to submit a sworn application detailing the alleged misconduct. If approved, the Department of Education may forgive the remaining loan balance and refund past payments.
- Forgiveness Amount: Remaining loan balance
- Who Qualifies: Borrowers with outstanding student loans related to the relevant school
- How to Apply: Through your loan servicer
Closed School Discharge
The Closed School Discharge Program removes federal student loan debt for students if their school closes while they are enrolled or shortly after they withdraw. The Department of Education investigates and establishes the school’s closure date and grants students a discharge automatically after one year. Borrowers can also apply sooner if eligible.
- Forgiveness Amount: Remaining loan balance
- Who Qualifies: Federal borrowers affected by school closures
- How to Apply: Through your loan servicer
Discharge Due to Death
Federal student loans are discharged upon the death of a borrower or a parent who took out a PLUS loan on their behalf. Discharge due to death eliminates the debt for both parties. Private lenders may have different policies regarding loan forgiveness in such cases.
- Forgiveness Amount: Remaining loan balance
- Who Qualifies: Borrowers with outstanding student loans at their time of death
- How to Apply: Through your loan servicer
Discharge in Bankruptcy
Unlike other debts, student loans are difficult to discharge through bankruptcy. Borrowers must prove "undue hardship," which is a challenging standard to meet. Applicants must prove that they would not be able to maintain a minimal standard of living if forced to repay the loan. They should also have a history of attempting to repay the loans in good faith.
- Forgiveness Amount: Full or partial loan amount
- Who Qualifies: Federal borrowers facing bankruptcy
- How to Apply: Through your loan servicer
False Certification Discharge
A False Certification Discharge can apply if your school engages in misconduct related to your loans or enrollment. You may qualify if your school enrolled you without proper eligibility (like a high school diploma), signed you up for loans unauthorized, or misrepresented your job prospects in your field of study. This program applies to Federal Direct Loans and Federal Family Education Loans (FFEL).
- Forgiveness Amount: Full loan amount
- Who Qualifies: Borrowers affected by student loan-related misconduct by their school
- How to Apply: Through your loan servicer
Total and Permanent Disability Discharge
Federal student loan borrowers who become totally and permanently disabled can apply for loan discharge. The Total and Permanent Disability Discharge Program eliminates the debt for Direct Loans, FFEL Loans, and Perkins Loans. It also relieves TEACH Grant recipients of their service obligation. To qualify, borrowers must submit an application and disability documentation from the Department of Veterans Affairs, Social Security Administration, or a qualified medical professional. Loans discharged under this program may be considered income for tax purposes.
- Forgiveness Amount: Full or partial loan amount
- Who Qualifies: Borrowers who become totally and permanently disabled
- How to Apply: Through Nelnet
Unpaid Refund Discharge
Borrowers who withdrew from school after receiving federal loans may be eligible for loan discharge if the school failed to return unused funds to the loan servicer as required. The Unpaid Refund Discharge Program applies to both Direct Loans and FFEL Loans and only covers the portion of the loan the school improperly retained.
- Forgiveness Amount: The portion of your loan held by your school
- Who Qualifies: Borrowers with unused student loan funds
- How to Apply: Through your loan servicer
Who is eligible for student loan forgiveness?
The federal government typically forgives student loans for professionals doing essential work, like teaching, social work, or healthcare. There are also programs for those affected by student loan-related fraud or school closure.
The FSA has reported that most people apply for public service loan forgiveness, with about 662,000 qualified applicants between October 2021 and July 2023. The table below shows the distribution of beneficiaries between federal student loan forgiveness programs as of 2023.
Public service and teacher student loan forgiveness programs waive loan balances in exchange for a service commitment and may not apply to student loans unrelated to the qualifying profession. If a teacher uses their student loan as a form of MBA financial aid, for example, loan forgiveness programs will not apply.
Borrowers who do not meet these criteria can have their loan balance forgiven after 20 to 25 years of payments through an income-driven repayment plan.
How do I check if I qualify for any student loan forgiveness programs?
The Biden-Harris Administration set a $167 billion loan forgiveness budget, according to a 2024 report by the U.S. Department of Education. Today, one in every 10 federal student loan borrowers has been approved for some sort of debt relief.
If you took out a federal loan to attend a Title IV school, you may qualify for student loan forgiveness programs. To check your eligibility, you can log into the federal student aid website and see your options through the “My Financial Aid Portal”. If you work for the government or a non-profit, you can also use the PSLF Help Tool.
Many loan discharge or repayment assistance programs are facilitated directly through the lender. You can ask your loan servicer if you qualify for any. They can guide you through the process of applying for and repaying qualified loans.
What steps should I take to apply for student loan forgiveness?
If you are a federal borrower, it is crucial to check whether you may be eligible for debt relief. According to research by Hanson, only 18.4% of eligible borrowers apply for student loan forgiveness. If you continue paying without doing your research, you may miss out on significant savings on your federal loans.
Is it possible to get 100% student loan forgiveness?
Student loan forgiveness programs typically do not result in complete loan forgiveness. In most cases, forgiveness is granted to borrowers who make consistent payments. However, student loan discharge programs can relieve borrowers of their entire loans in extenuating circumstances, like bankruptcy or fraud. These programs are available to the percentage of students in public schools, private schools, and career schools with federal loans.
How Can Career School Students Augment Loan Forgiveness with Financial Aid?
Career-oriented programs outside traditional college routes often offer distinct financial support structures that can work synergistically with student loan forgiveness. Many career school students qualify for specialized grants, scholarships, or alternative loan plans not typically available to traditional university enrollees. These additional avenues can reduce overall borrowing costs and complement federal forgiveness options by addressing funding gaps. For instance, vocational programs such as cosmetology benefit from targeted financial programs like financial aid for cosmetology school, which provide tailored support that aligns with industry-specific requirements and offer opportunities for enhanced financial stability. Effective planning and comprehensive financial review can help these students maximize support and better manage both tuition expenses and post-study loan commitments.
How do enrollment policies impact student loan forgiveness eligibility?
Evaluating institutional enrollment policies can be pivotal for borrowers seeking effective student loan relief. Schools with open admission models, such as open admission online colleges, may offer streamlined access to higher education and financial aid programs that enhance eligibility for tailored forgiveness options. Consider how an institution’s accreditation, financial counseling resources, and established partnerships with federal or state loan forgiveness initiatives can influence the support you receive throughout your academic journey and subsequent debt management strategy.
Can Certification Programs Enhance Your Career and Accelerate Loan Repayment?
Consider enrolling in certification programs designed to deliver targeted skills for in-demand roles. Such programs often offer a faster route to career advancement and improved earning potential, which can accelerate the repayment of student loans and enhance long-term financial stability. Evaluating industry-specific certifications provides an opportunity to bridge the gap between academic credentials and market needs, supporting a more robust financial strategy without overlapping existing loan forgiveness insights.
Can Accelerated Degree Programs Influence My Student Loan Forgiveness Strategy?
Pursuing an accelerated course of study may reduce overall borrowing and compress the repayment timeline, potentially enhancing eligibility for forgiveness programs. By shortening the duration of your academic program, you can transition to full-time employment earlier, which may lead to a more favorable debt-to-income ratio and improved qualification for income-driven repayment plans. Evaluate the cost–benefit profile of fast-tracking your education through accelerated degree programs to ensure that the accelerated schedule aligns with your long-term financial strategy and integrates seamlessly with available federal and alternative loan forgiveness options.
Do I have to pay taxes if my student loan is forgiven?
When your student loans are forgiven, they can count as income and be taxed. The federal government will not tax forgiven federal loans, but you may owe taxes on the forgiven amount depending on your state's tax laws. Because tax laws vary between states, you must consult a local tax agency for more information.
What are some alternatives to student loan forgiveness?
Some loans, including all those from private lenders, are ineligible for federal debt relief programs. Even if you are unable to qualify for student loan forgiveness programs, there are ways to bring the cost of your loans down or eliminate them faster.
If you have loans from multiple lenders, consider consolidating your debt into one loan. You can contact a lender about refinancing and negotiate a lower interest rate. Some lenders even provide a discount for setting up automatic payments.
If you are paying down debt using income or savings, you can manage payments using either the debt avalanche or debt snowball method. The debt avalanche method prioritizes paying off the loan with the highest interest rate first, while the debt snowball method focuses on paying off the smallest loan first. Both approaches can be effective, and the best choice depends on your financial situation and risk tolerance.
Understanding Specialized Career Pathways and Student Loan Solutions
For students pursuing specialized career paths, such as aviation, financing education can be a unique challenge. Many aspiring pilots and aviation professionals face higher tuition costs compared to traditional college programs, making flexible and targeted financing solutions critical. While federal forgiveness programs primarily cater to professions like teaching and public service, students pursuing private career schools or specialized training may need to explore alternative funding options.
For individuals considering a career in aviation, pilot training loans can provide an effective way to manage the financial burden of paying for flight school. These loans are specifically tailored for the costs associated with becoming a certified pilot, including tuition, equipment, and flight hours.
By learning about tailored loan programs and repayment strategies, students can open doors to high-demand fields and increase their earning potential while maintaining financial health. Exploring options aligned with your professional goals is essential to reducing the financial strain of education while pursuing a rewarding career.
Strategies for Managing Student Loan Payments While in School
Balancing student loan payments with the cost of living can be a complex financial challenge for many college students. While student loans are primarily designed to cover tuition and school-related fees, borrowers often wonder how they can also address essential living expenses. Many federal and private loans allow for this flexibility, but understanding how to utilize these funds effectively can make a significant difference.
Students can leverage federal aid options like those provided under the Federal Direct Loan Program, which offers loans that can be applied toward room, board, and other living costs. Once you've determined your budget, explore ways to maximize your loan disbursements strategically. For instance, some schools allow students to request refunds from unused direct loan amounts to pay for everyday needs such as rent and groceries.
Private loans offer another option, but they usually come with variable interest rates and stricter terms. For those considering this route, ensure you fully understand the repayment obligations and carefully evaluate whether your monthly budget can accommodate these future expenses.
Additionally, some students reduce their reliance on loans by pursuing part-time work or applying for grants and scholarships to cover living costs. If you're unsure where to begin, understanding how to pay for living expenses while in college provides actionable insights into planning a sustainable financial strategy.
By maintaining a well-structured financial plan while using loans responsibly, students can manage expenses more effectively and avoid exceeding a manageable debt load. Doing so not only supports their collegiate pursuits but also positions them for smoother financial transitions after graduation.
Will Loan Forgiveness Impact My Future Financial Planning?
Borrowers should recalibrate their financial strategies once loans are forgiven. Adjusting budgets and credit planning, while reassessing long-term goals such as retirement savings and emergency funds, is essential. Integrating forgiveness outcomes into an overall financial health plan can provide opportunities for improved cash flow, diversified investments, and risk management. For working adults considering further education as part of their financial renewal, research options from the most affordable online colleges to align educational growth with smart financial planning.
Should I consider private loans for college as a complementary option?
Evaluating private loans for college can offer a strategic alternative or supplement to federal forgiveness programs. This option may provide customized repayment terms and potentially lower interest rates through refinancing, especially for borrowers who do not qualify for certain federal programs. It is crucial to compare offers, review lender credentials, and assess long-term financial impacts before making a decision. For detailed comparisons and further insights, refer to private loans for college.
Can I Use Student Loans to Cover Living Expenses as an Adult?
Student loan funds are primarily allocated for tuition and mandatory academic fees, yet many institutions allow the allocation of unemployment or unused disbursements for essential living costs. Independent adult learners often face unique financial challenges that require managing rent, groceries, transportation, and other day-to-day expenses alongside tuition fees. In such situations, borrowers must strictly adhere to both federal guidelines and educational institution policies to ensure that funds are used for permissible expenses. For a comprehensive evaluation of options tailored to non-traditional students, refer to our guide to school loans for adults.
Are there any hidden risks with student loan forgiveness programs?
While federal forgiveness options offer substantial aid, borrowers must also consider potential risks that accompany these programs. Uncertainties in eligibility criteria, the possibility of unexpected tax liabilities, and regulatory changes may affect the overall benefit of forgiveness. Changes in federal guidelines or lender policies can alter the long-term repayment landscape, underscoring the need to continuously monitor policy updates and consult with financial professionals. Additionally, comparing alternatives—such as options available from FAFSA approved online schools—ensures that the chosen strategy aligns with evolving financial goals and regulatory standards.
What Documentation Do I Need to Successfully Apply for Student Loan Forgiveness?
When preparing your application, ensure that you compile precise and verifiable records. Key documentation includes employment verification detailing your service in eligible positions, proof of enrollment or completion from your educational institution, and recent income statements or tax returns that support your income-driven repayment calculations. In addition, maintain official correspondence from your loan servicer to confirm any previous repayments or adjustments. For academic evaluation or further education insights, consider exploring our post What's the easiest bachelor degree to get? as part of your research strategy.
Key Findings
- The FSA provides over $114 billion annually in grants, work-study, and loan funds.
- Only 18.4% of eligible borrowers apply for federal student loan forgiveness.
- One in 10 federal student loan borrowers are approved for debt relief as of 2024.
- Public service loan forgiveness had 662,000 qualified applicants between October 2021 and July 2023.
Other Things You Should Know About the Student Loan Forgiveness Programs
Who pays for student loans when they are forgiven?
When student loan debt is forgiven, the cost falls on taxpayers, as the government absorbs the amount that would have been repaid. This can impact the federal budget and can lead to higher taxes or reduced spending in other areas.
Student loan forgiveness programs are meant to relieve good payers and incentivize students to pursue certain career paths. The outcomes of these programs, like attracting qualified teachers or retaining public service workers, are meant to contribute to a stronger economy and offset the cost of forgiveness in the long run.
What will happen to my credit when my student loans are forgiven?
Forgiveness can have a temporary, two-sided impact on your credit score. Here is why:
- Loss of Positive Account History. Student loans are typically installment loans, which positively affect your credit mix (having different types of credit accounts). When the loan is forgiven, that positive account disappears and may cause a slight dip in your score.
- Improvement in Debt-to-Income Ratio. Forgiveness eliminates a significant debt, which improves your debt-to-income ratio (DTI). This is a key factor in credit scoring, and a lower DTI can outweigh the loss of the positive account history and lead to a credit score increase in the long run.
The temporary dip is minor, and the long-term benefits of being debt-free can outweigh the short-term credit score fluctuations.
Which student loans are not eligible for forgiveness?
Federal student loan forgiveness programs typically do not apply to private loans. These loans are issued by banks or other private lenders, and they have their own repayment terms and conditions. There are no federal forgiveness programs for private loans.
However, some private lenders may allow borrowers to negotiate a settlement with the lender, especially if they are experiencing financial hardship. In these situations, the borrower may be asked to pay a lump sum less than the total outstanding balance to settle the debt.
References:
- Federal Student Aid. (n.d.). About Us. Federal Student Aid. Retrieved June 24, 2024, from https://studentaid.gov/about
- Federal Student Aid. (n.d.). Student Loan Forgiveness. Federal Student Aid. Retrieved June 25, 2024, from https://studentaid.gov/manage-loans/forgiveness-cancellation
- Hanson, M. (2023, October 8). Student Loan Forgiveness Statistics [2023]: PSLF Data. Education Data Initiative. Retrieved June 26, 2024, from https://educationdata.org/student-loan-forgiveness-statistics
