Student Loan Forgiveness

Student Loan Forgiveness

Student loan forgiveness is real, but it won’t happen overnight. There is no trick that will make your entire student loan debt disappear. However, you can enroll in certain repayment plans that will lower your monthly payments and allow you to forgive any remaining balance after 20 or 25 years (depending on the plan you choose). You may also qualify for various student loan forgiveness programs that can eliminate a portion of your debt in as little as five years.

Most borrowers are unaware of the numerous federal student loan forgiveness programs available. Depending on your specific situation, you may qualify for one or more of the following programs:


Public Service Loan Forgiveness (PSLF)

Under the Public Service Loan Forgiveness (PSLF) program, those who are full-time employees (30+ hrs. per week) in the nonprofit sector, public education, the Peace Corps and certain government positions, may be eligible for student loan forgiveness (remaining balance) after 10 years or 120 payments.

Teacher Loan Forgiveness (TLF)

Under the Teachers Loan Forgiveness (TLF) program rewards those who teach in low-income with a tax-exempt reduction of up to $17,500 after 5 years of service. In addition, those who qualify are still eligible for PSLF, if there is any remaining balance after 10 years.

Total Permanent Disability Discharge (TPD)

Borrowers who have suffered permanent disability may be eligible for complete student loan forgiveness under the Total and Permanent Disability (TPD) Discharge program. The amount forgiven is also tax exempt.


Some nurses may have a portion of their loans paid off under two programs: Nurse Corps Loan Repayment (LRP) and National Health Service Corps (NHSC) Loan Repayment. Depending on the length of service and type of program chosen, the amount forgiven (repaid) may be as much as 85% of the loan balance.

Closed School

When a college or university closes, borrowers who were unable to attain their degrees are protected under Closed School Discharge. Those eligible for federal student loan discharge will no longer be responsible for payments and any payments already made will be refunded.

Financial Hardship

Although rare, some borrowers may be eligible for partial or full student loan forgiveness due to bankruptcy or undue financial hardship. Those who don’t qualify for forgiveness may still be able to change their loan terms.

Borrowers Default Defense

Education Secretary Betsy DeVos testifies before the House Education and … finalized rules for the Borrower Defense to Repayment program.




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