Student Loan Forgiveness: Programs for Relief and Forgiveness

What Is Student Loan Forgiveness?

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

Types of Student Loan Forgiveness Programs

There are different types of federal student loan forgiveness programs. These are some of the most popular plans.

Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program allows qualifying federal student loans to be forgiven after 120 qualifying payments, if a borrower works for an eligible public service employer. The average discharge amount for an approved PSLF applicant is $78,800.

In October 2025, however, the Education Department (ED) announced that it intended to modify PSLF by scrutinizing the participating organizations more closely. As a result, some current eligible employers may no longer qualify, effective July 1, 2026. Weeks later, two lawsuits were filed challenging the ED’s power to remove a public or nonprofit employer from PSLF eligibility. As of April 2026, it is not known when these lawsuits will be heard, or whether these developments will change the planned July 2026 date for PSLF to be modified.

In the meantime, PSLF is still operating. People with federal student loans can continue to apply for PSLF and keep making payments toward their forgiveness goal.

Income-Driven Repayment Forgiveness

If your federal student loan payments are unaffordable, you may qualify for one of the Income-Driven Repayment (IDR) plans. These plans base your monthly payment amount on your discretionary income and family size, and may eventually lead to forgiveness after 20 or 25 years:

•   Pay As You Earn (PAYE): Available for Direct Loan borrowers, with forgiveness after 20 years of payments.

•   Income-Based Repayment (IBR): Available for both Direct and FFEL Program loans, with forgiveness after 20 or 25 years of payments.

•   Income-Contingent Repayment (ICR): Available for Direct Loan borrowers, with forgiveness after 25 years of payments.

Like PSLF, these plans will see changes beginning on July 1, 2026, and PAYE and ICR are scheduled to be phased out completely by 2028. Until then, the plans continue to operate for participants, and applications are open for new borrowers until July 1, 2026.

The New Income-Driven Plan: RAP

The Repayment Assistance Plan (RAP) is the future of income-driven repayment. The program is scheduled to launch July 1, 2026, replacing existing income-driven repayment plans for new borrowers.

With RAP, borrowers will pay 1% to 10% of their annual adjusted gross income every month, with the percentage based on their earning level. Once enrolled in RAP, forgiveness on a federal student loan can occur after 30 years of payment (or 10 years for those in PSLF). For loans first disbursed on or after July 1, 2026, borrowers must opt in to RAP.

What Happened to the SAVE Plan?

The Saving on a Valuable Education (SAVE) plan, initiated by President Joe Biden, aimed to reduce federal student loan payments to as low as 5% of monthly discretionary income, and cut some lower-income borrowers’ obligations to zero.

As a result of the “One Big Beautiful Bill” that was signed in July 2025, the SAVE plan will be eliminated for all borrowers on July 1, 2026. You can no longer apply for SAVE, and any borrowers still enrolled in SAVE will receive notice starting on July 1 that they have 90 days to switch to a new plan. If they don’t, they will be switched automatically.

Federal Perkins Loan Cancellation

A Federal Perkins Loan delivered need-based aid to college students as part of the Federal Direct Student Loan Program. It ended in 2017, but Perkins loan forgiveness programs are still available.

Perkins loan holders who work in a public service position, such as teacher, nurse, or firefighter, or full-time public defenders can have their student debt partially or fully erased after working in these approved public service jobs for five years and making qualifying payments. For additional eligibility and application information, see How to Get Perkins Loan Forgiveness in 2026.

Who Qualifies for Student Loan Forgiveness?

Eligibility for federal student loan forgiveness programs like Public Service Loan Forgiveness and Teacher Loan Forgiveness (see the details about this program below), is based on the type of federal student loan you received, your income, and your chosen career.

In addition, most states offer loan forgiveness programs to those who work in certain fields or live in certain areas. Check with your state’s education department for more information, or do an online search of your state’s name and the phrase “student loan forgiveness” to see what’s available.

How to Apply for Student Loan Forgiveness

To apply for federal student loan forgiveness programs, go to the Student Loan Forgiveness page on the Federal Student Aid website. There you can find application forms for Public Service Loan Forgiveness, Teacher Loan Forgiveness, Federal Perkins Loan forgiveness and more. You’ll need to provide your Social Security number, date of birth, contact information, and any requested documents, among other items.

For state forgiveness programs, go directly to the website for the state loan forgiveness program in question to find the application form.

Student Loan Forgiveness By Profession

There are federal student loan forgiveness programs for teachers, medical workers, members of the military, and some volunteers, and relief is available for people with permanent disability or those whose colleges have closed. Here are some of the programs available.

Government and Nonprofit Workers

If you are enrolled in PSLF and have worked full time in public service (federal, state, local, tribal government, or a nonprofit organization) for 10 years or more, you may be eligible to have all your student debt canceled.

As things stand now, any U.S. federal, state, local, or tribal government agency is considered a government employer for the PSLF program. This includes employers such as the U.S. military, public elementary and secondary schools, public colleges and universities, public child and family service agencies, and special governmental districts (including entities such as public transportation, water, bridge district, or housing authorities).

You can find out if you are eligible by using the PSLF Help Tool on the Federal Student Aid website.

Teachers

While PSLF offers forgiveness for teachers, the Teacher Loan Forgiveness program is also available to help them repay their federal loans. (Note: Borrowers usually can’t receive credit toward Teacher Loan Forgiveness and PSLF for the same period.)

With Teacher Loan Forgiveness, highly qualified teachers may be able to get forgiveness of up to $17,500 on their Direct Subsidized and Unsubsidized Loans and their Federal Stafford Loan. Under this program, if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency and meet other qualifications, you may be eligible for forgiveness.

Some states also offer repayment programs for teachers. Check for programs on the website of your state’s education department.

Health Care Professionals

Doctors, nurses, and other health care workers have access to a number of student loan forgiveness programs in addition to PSLF. Some of these programs forgive loans, while others provide money to student loan borrowers in the form of a loan repayment program.

•   Doctors such as licensed primary-care clinicians in eligible disciplines can receive loan repayment assistance up to $75,000 through the National Health Service Corps (NHSC) Loan Repayment Program. In exchange for loan repayment, you must serve at least two years of service at an NHSC-approved site in a Health Professional Shortage Area (HPSA).

For more on student loan forgiveness for doctors, read 8 Medical School Loan Forgiveness Programs for Doctors.

•   Loan repayment is available to registered nurses (RN), nurse faculty (NF), and advanced practice registered nurses (APRN) through the Nurse Corps Loan Repayment Program. This program gives funding preference to those who need the most help financially.

To be eligible, you must have received your nursing education from an accredited school of nursing located in a U.S. state or territory. And you must work full time in an eligible Critical Shortage Facility (CSF) in a high-need area.

If your application is accepted, you will receive 60% of your total outstanding, qualifying, nursing education loans over the course of two years. After your two-year service contract, you may be eligible for a third year and an additional 25% of your loans.

•   The National Health Service Corps (NHSC) Loan Repayment Program also offers student loan forgiveness for certain types of nurses. Full-time nurse practitioners, psychiatric nurse specialists, and nurse-midwives may be able to cancel up to $50,000 of student loan debt through the program. Part-time nurse practitioners and nurse-midwives may receive up to $25,000 in loan forgiveness. In exchange for loan forgiveness, they must commit to at least two years of service at an NHSC-approved facility.

Military & Volunteers

Members of the Armed Forces may qualify for forgiveness of the remaining balance of their Federal Direct Loans through Public Service Loan Forgiveness. The HEROES Act Waiver allows a service member or someone on their behalf, such as their school, spouse, or other family member, to request an extension of the reduced payment amount on their income-driven repayment (IDR) plan. For more, check out our Guide to Military Student Loan Forgiveness.

If you are a Peace Corps or AmeriCorps volunteer, you may qualify for loan forgiveness through PSLF. Participants in AmeriCorps VISTA, who perform tasks such as fundraising and grant writing and commit to a one-year term of full-time service (and up to five years in total), may be eligible for the Segal Education Award or a cash stipend of $1,800 after completing their service requirement.

Employer-Based Repayment Assistance

Many employers subsidize their workers’ repayment of student loans through employer-based repayment assistance programs. Tax-free benefits under an employer’s education assistance program are capped at $5,250 per employee per year (the amount may be indexed for inflation starting in 2027). This limit applies to the total of all qualified assistance, which can include tuition, fees, books, supplies, and student loan principal and interest payments.

Ask your HR department if your company has a student loan repayment assistance benefit.

Tax Implications of Student Loan Forgiveness

Taxation on forgiven student loans is an evolving area. According to the Federal Student Aid website, forgiveness obtained through PSLF is not taxable by the federal government. The American Rescue Plan Act of 2021 made other student loan forgiveness tax-free at the federal level only through the end of 2025. President Trump’s “One Big Beautiful Bill” did not extend that broader provision.

Without action from Congress, student loan borrowers who get their debt forgiven under an IDR plan will likely face a federal tax bill again starting on January 1, 2026. Borrowers who qualify for student loan forgiveness in either 2025 or 2026 should talk to a tax professional about the potential tax implications, including at the state level.

💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

Student Loan Discharge for Special Circumstances

Federal student loans can be discharged for various other reasons. To learn about the details of the circumstances, go to the FSA website. The common reasons are:

•   Total and permanent disability (TPD)

•   Death of the borrower

•   School closure while the borrower was enrolled or shortly after withdrawal

•   False certification by the school of the borrower’s eligibility or identity theft

•   Approved borrower defense to repayment claims where the school engaged in misconduct or defrauded the student

State-Based Student Loan Repayment Assistance Programs

Along with the student loan forgiveness options provided by the federal government, individual states have their own debt cancellation programs. All 50 states and the District of Columbia reportedly offer at least one student loan forgiveness program.

For more information on programs in California, Kansas, Maine, Maryland, Massachusetts, Michigan, Ohio, and Texas, read 8 States That Will Help Pay Off Student Loans. For other states, search your state name and the term “student loan repayment assistance.”

Can Private Student Loans Be Forgiven?

Most lenders of private student loans do not offer forgiveness for debt owed. The possible exceptions are total and permanent disability and death. However, in some cases, the debt may be inherited by the surviving spouse or by a cosigner. It’s important to check your student loan agreement for more information.

Some lenders may make individual arrangements if you contact them and make a case for severe reduction of income. Reach out to your lender to find out if any accommodation can be made for hardship, or if student loan refinancing would help.

How to Avoid Student Loan Forgiveness Scams

Unfortunately, there are many student loan forgiveness scams that target borrowers seeking financial relief from their loans. Some red flags include promises of immediate forgiveness, asking for a fee upfront, or requesting your personal information.

To help protect yourself, beware companies that ask for upfront fees, promise guaranteed forgiveness, or use high-pressure tactics, and avoid giving out your personal information.

If you believe you’re a victim of a student loan forgiveness scam, you can report it to the Federal Trade Commission.

The Takeaway

Federal student loan forgiveness is available based on a borrower’s employment in public service or insufficient income to make payments. The types of programs have changed quite a bit in recent years, and on July 1, 2026, the Education Department will introduce a totally new income-driven repayment plan.

For those with private student loans, there are no formal forgiveness plans. However, a lender might make a hardship accommodation, or in some cases, student loan refinancing may be an option to consider.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

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