Several student loan forgiveness programs exist for US borrowers — Public Service Loan Forgiveness (PSLF), income-driven repayment forgiveness, Teacher Loan Forgiveness, and state programs. This guide covers all main pathways.
- Federal student loan account at studentaid.gov
- Employment records if applying for PSLF
- Income information for income-driven repayment
Public Service Loan Forgiveness (PSLF) — 120 payments
PSLF forgives remaining Direct Loan balances after 120 qualifying payments while working full-time for a qualifying employer (government or 501(c)(3) nonprofit). Apply using the PSLF & Temporary Expanded PSLF (TEPSLF) Certification & Application form at studentaid.gov. Enroll in an income-driven repayment plan to maximize forgiveness.
Income-Driven Repayment (IDR) forgiveness — 20 to 25 years
All four IDR plans (SAVE, PAYE, IBR, ICR) forgive remaining balances after 20–25 years of qualifying payments. SAVE (Saving on a Valuable Education) is the newest and most generous — payments as low as 5% of discretionary income for undergraduate loans.
Teacher Loan Forgiveness — up to $17,500
Forgives up to $17,500 for full-time teachers working 5 consecutive years at low-income schools or educational service agencies. Must have Direct Loans or FFEL loans in repayment during the 5 years.
Apply for PSLF through the PSLF Help Tool
Go to studentaid.gov → PSLF Help Tool. Confirm your employer qualifies, complete the Employment Certification Form (ECF) annually, and submit to your loan servicer (MOHELA handles all PSLF). Track your qualifying payment count in your account.
Apply for IDR plan enrollment or adjustment
Enroll in SAVE at studentaid.gov → Repayment → Income-Driven Repayment Plans. Recertify your income annually. The IDR Account Adjustment (2023) gives retroactive credit for past months of repayment — check if you qualify for an automatic forgiveness credit.
Frequently Asked Questions
Federal student loan forgiveness (PSLF, IDR forgiveness) is not taxable at the federal level through 2025 under the American Rescue Plan Act. However, some states do tax forgiven amounts. Check your state’s tax treatment.
Private student loans are not eligible for federal forgiveness programs. Options for private loans: refinancing to lower interest rate, negotiating with your lender for hardship forbearance, or in extreme cases, bankruptcy (difficult but possible for private loans).