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Find the latestStudent loan forgiveness might seem too good to be true, but there are legitimate ways to get it through free government programs. The following options are available only to borrowers with federal student loans. Some programs have very specific requirements that make them difficult to qualify for, but income-driven repayment plans are open to most borrowers. Get the scoop on student loans Stay up to date on how student loan forgiveness and repayment may affect your finances. The information below is about existing student loan forgiveness programs, where borrowers must qualify based on specific requirements. If successful, all of the borrower's debt is forgiven. That's different from broad student debt cancellation, announced Aug. 24, that covers nearly every federal borrower. That plan cancels up to $10,000 in federal loans for borrowers who meet income tests, and up to $20,000 for those who meet the income threshold and were previously awarded Pell Grants. But the remaining balance, if any, must be repaid once payments resume. Student loan forgiveness programs1. Income-driven repayment forgiveness. The federal government offers four main income-driven repayment plans, which allow you to cap your loan payments at a percentage of your monthly income. When enrolled in one of these plans, your remaining loan balance will be eligible for forgiveness after 20 or 25 years, depending on the plan. These plans are most beneficial for those with large loan balances relative to their income. Only 32 borrowers have received loan forgiveness through income-driven repayment forgiveness, according to the National Consumer Law Center. This forgiveness was made tax-free retroactive to December 2020 through the end of 2025, as part of the March 2021 American Rescue Plan. However, most borrowers will not qualify for forgiveness through income-driven repayment until the early 2030s. 2. Public Service Loan Forgiveness.Public Service Loan Forgiveness is available to government and qualifying nonprofit employees with federal student loans. Eligible borrowers can have their remaining loan balance forgiven tax-free after making 120 qualifying loan payments. Until Oct. 31, 2022, the Education Department has expanded which payments on federal student loans count toward PSLF through a limited waiver; now, payments on FFEL and Perkins loans, late payments and payments made on any repayment plan will retroactively count as qualifying payments. 3. Teacher Loan Forgiveness. Teachers employed full time in low-income public elementary or secondary schools may be eligible for Teacher Loan Forgiveness after working for five consecutive years. They can have up to $17,500 in federal direct or Stafford loans forgiven. To qualify, teachers must have taken out loans after Oct. 1, 1998. 4. Student loan forgiveness for nurses. Nurses shouldering student debt have several options for student loan forgiveness: Public Service Loan Forgiveness, Perkins loan cancellation, and the NURSE Corps Loan Repayment Program, which pays up to 85% of qualified nurses’ unpaid college debt. Public Service Loan Forgiveness may be the most likely option for most nurses — few borrowers have Perkins loans, and the NURSE Corps program is highly competitive. Other student loan forgiveness programsThere are a few additional niche student loan forgiveness or payment assistance programs you may qualify for through federal or state programs. Eligibility in these programs depends on your profession and where you work.
Student loan cancellation programs
Student loan discharge programs
The caveatsLegitimate federal forgiveness, cancellation and discharge programs are free through the Department of Education, but there are other costs to consider.
Get the scoop on student loans Stay up to date on how student loan forgiveness and repayment may affect your finances. Are student loans being forgiven after 10 years?Under the federal program, eligible borrowers can have their loans discharged after 10 years if they meet eligibility requirements.
How much of a student loan can be forgiven?Federal Pell Grant recipients may be eligible for up to $20,000 in debt relief, and other federal student loan borrowers may be eligible for up to $10,000 in debt relief.
Do student loans go away after 7 years?Defaulted federal student loans either fall off seven years after the date of default, or seven years after the date the loan was transferred from the Federal Family Education Loan Program (FFEL) to the Department of Education.
How can I get out of student loan debt?Here are seven legal ways you can get out of paying your student loans.. Public Service Loan Forgiveness. ... . Teacher Loan Forgiveness. ... . Perkins Loan cancellation. ... . Income-driven repayment plans. ... . Disability discharge. ... . Bankruptcy discharge. ... . Get an employer who will pay off your loans.. |