Who the current forgiveness programs reach

Student loan forgiveness in 2024 depends on your loan type, your job, and whether you've been paying for long enough. There is no single program that covers everyone, and no automatic forgiveness — you have to take specific steps for each one. The programs that exist fall into three categories: Public Service Loan Forgiveness (PSLF) for government and nonprofit workers, income-driven repayment forgiveness for borrowers on specific payment plans, and targeted relief for specific groups like teachers or nurses.

The Biden administration's broad forgiveness plan that would have canceled up to $20,000 per borrower was blocked by the courts in 2023 and did not move forward in 2024. What remains are the narrower programs that have existed for years, plus some recent additions for specific professions. You need to know which one, if any, applies to your situation.

Key Takeaways

  • Public Service Loan Forgiveness requires 120 may have access to payments while working full-time for a government agency or nonprofit, then you submit paperwork to the Department of Education to request forgiveness.
  • Income-driven repayment forgiveness cancels remaining balance after 20 or 25 years of payments, depending on the plan, but you must be on one of four specific repayment plans to be covered.
  • Teacher loan forgiveness and other profession-specific programs have smaller dollar caps ($5,000 to $17,500) and stricter requirements about where and what you teach or do.
  • You must submit a separate request to your loan servicer or the Department of Education for each program — nothing happens automatically even if you meet the requirements.
  • Loan type matters: only federal loans (Direct Loans, FFEL, Perkins) can be forgiven through these programs; private student loans have no forgiveness options.

Public Service Loan Forgiveness and the 120-payment rule

Public Service Loan Forgiveness (PSLF) cancels the remaining balance on your federal student loans after you make 120 may have access to payments while working full-time for a U.S. federal, state, or local government agency, or a nonprofit organization with 501(c)(3) status. The payments do not have to be consecutive, and they do not have to be on the same loan. You can work for different employers as long as each one qualifies.

A may have access to payment means you are on an income-driven repayment plan (Income-Based Repayment, Pay As You Earn, Revised Pay As You Earn, or Income-Contingent Repayment), you made a payment of at least $0 that month, and you were employed full-time by a may have access to employer on the date you made the payment. Part-time work does not count. You must work at least 30 hours per week, though most government and nonprofit jobs exceed that.

To track your progress, you can log into your Federal Student Aid account and check your payment count. The Department of Education's PSLF Help Tool lets you enter your employment history and see which payments count. You do not need to submit anything until you reach 120 payments — then you submit a PSLF forgiveness request form to your loan servicer. Processing typically takes three to six months after submission.

Income-driven repayment forgiveness after 20 or 25 years

If you are on an income-driven repayment plan, any balance remaining after 20 years (for PAYE and REPAYE) or 25 years (for IBR and ICR) is forgiven. This is automatic in the sense that you do not have to apply — your loan servicer tracks the time — but you must stay on the same plan and keep making payments for the full period. If you switch to a different repayment plan, the clock resets.

The catch is that forgiven amounts may be treated as taxable income in the year of forgiveness. The IRS may send you a 1099-C form, and you could owe federal income tax on the forgiven amount. Some borrowers have paid $50,000 or more in taxes on forgiveness. Congress has proposed legislation to waive this tax, but as of 2024 it remains your responsibility. You should speak with a tax professional before you reach forgiveness to understand your potential tax bill.

To be on an income-driven plan, you must have federal Direct Loans or FFEL loans. Perkins Loans do not may have access to for income-driven forgiveness. You can consolidate other federal loans into a Direct Consolidation Loan to make them may be able to access, but consolidation resets your payment count to zero, which can delay PSLF forgiveness by years.

Teacher loan forgiveness and profession-specific programs

The Teacher Loan Forgiveness program cancels up to $17,500 in federal student loans if you teach full-time for five consecutive years in a low-income school or school district. You must be certified or licensed to teach, and the school must be on the Department of Education's list of may be able to access schools. Rural schools and schools with high percentages of students from low-income families typically may have access to.

Other profession-specific programs exist for nurses, doctors, and other healthcare workers, though the rules and dollar amounts vary. The Nurse Corps Loan Repayment Program, for example, offers up to $60,000 in repayment for nurses who work in underserved areas, but it is administered by the Health Resources and Services Administration (HRSA), not the Department of Education. may be able to access and application processes differ from PSLF.

These programs have smaller forgiveness amounts than PSLF and stricter geographic or employment requirements. You cannot combine them — you choose one path. If you work as a teacher in a low-income school and also work for a nonprofit, you would have to decide whether to pursue Teacher Loan Forgiveness or PSLF, not both.

Loan types that do and do not may have access to

Federal Direct Loans, FFEL Loans (Federal Family Education Loans), and Perkins Loans can be forgiven through government programs. Private student loans cannot. If you have private loans, there is no forgiveness program available to you through the Department of Education or any federal agency.

Parent PLUS Loans are federal loans, but they have limited forgiveness options. They do not may have access to for income-driven repayment forgiveness unless you consolidate them into a Direct Consolidation Loan, which then makes them may be able to access for income-driven plans. They do may have access to for PSLF if you consolidate them and meet all other requirements.

If you are unsure what type of loans you have, log into your Federal Student Aid account at studentaid.gov. Your loan servicer's website will also show your loan type. Knowing this before you apply for any forgiveness program is essential — applying for a program your loans do not may have access to for wastes time and delays the process.

What happens after forgiveness is granted

Once your forgiveness is approved, your loan servicer will send you a notice confirming the amount forgiven and the date your loans were discharged. Your loans will show as paid in full on your credit report. You will no longer receive billing statements or payment reminders for those loans.

If you received a refund of payments you made after your forgiveness date, you may have to repay that refund. The Department of Education will notify you if this applies. You should keep all documentation of your forgiveness approval and the date it was granted, in case you need to dispute credit reporting errors or respond to questions from the IRS about the forgiven amount.

Frequently Asked Questions

Can I get forgiveness if I have already paid off my loans?

No. Forgiveness programs only apply to outstanding balances. If you have already paid your loans in full, you cannot retroactively receive forgiveness or a refund of payments made. Some borrowers have requested refunds of payments made during the COVID-19 payment pause, but this is a separate issue from forgiveness programs.

What if I switch jobs or move to a different state?

For PSLF, you can work for different may have access to employers and still count all payments toward the 120 required. The employer must may have access to at the time you make each payment, but you do not have to stay with the same employer. For income-driven forgiveness, your employment does not matter — only your income and family size matter for your payment amount. You can work anywhere and still count payments toward the 20 or 25-year forgiveness period.

Do I have to be on a specific repayment plan to get forgiveness?

For PSLF, yes — you must be on Income-Based Repayment, Pay As You Earn, Revised Pay As You Earn, or Income-Contingent Repayment. The Standard 10-year plan does not count. For income-driven forgiveness, you must be on one of those same four plans. If you are on the Standard plan or have not chosen a plan, you will not receive forgiveness through these programs.

What if my employer says I do not work full-time even though I work 30+ hours per week?

PSLF defines full-time as at least 30 hours per week. If your employer classifies you differently for their own purposes, that does not matter for PSLF. You can submit an Employment Certification Form to the Department of Education with your hours documented, and the Department will make the information. Keep records of your hours and schedule to support your claim.

Can I get forgiveness for loans I took out for graduate school?

Yes, if they are federal loans and you meet the requirements of the forgiveness program you are pursuing. Graduate loans are treated the same as undergraduate loans for PSLF and income-driven forgiveness. Parent PLUS Loans taken out for a graduate student's education have the same limited options as other Parent PLUS Loans.