What loan forgiveness programs exist today
Three main federal student loan forgiveness programs are currently operating: Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and income-driven repayment forgiveness. Each targets a different group of borrowers and has different requirements. The broad loan forgiveness plan announced in 2022 faced legal challenges and has not moved forward, so these three programs represent the actual forgiveness available to most borrowers right now.
Forgiveness amounts and timelines vary significantly. PSLF forgives remaining balances after 120 may have access to payments while working for a government or nonprofit employer. Teacher Loan Forgiveness forgives up to $17,500 after five years of teaching in a low-income school. Income-driven repayment forgiveness erases remaining balances after 20 to 25 years of payments, depending on the plan. None of these programs require you to reapply or take new action if you are already in the right repayment plan.
Key Takeaways
- Public Service Loan Forgiveness forgives your remaining balance after 120 on-time payments while working full-time for a government agency or nonprofit organization.
- Teacher Loan Forgiveness forgives between $5,000 and $17,500 of federal loans after five consecutive years of teaching in a low-income school.
- Income-driven repayment plans forgive remaining balances after 20 to 25 years of payments, and payments are based on your income rather than your loan balance.
- You do not need to submit a separate form to be forgiven under income-driven repayment — forgiveness happens automatically when you reach the payment count.
Public Service Loan Forgiveness and who qualifies
PSLF is available to borrowers with federal Direct Loans who work full-time for a U.S. federal, state, local, or tribal government agency, or for a nonprofit organization with 501(c)(3) status. "Full-time" means at least 30 hours per week at a single employer. After you make 120 may have access to monthly payments on an income-driven repayment plan, the remaining balance is forgiven without tax consequences.
The payments do not have to be consecutive, but they must be made while you are employed in a may have access to job. If you change employers or move to the private sector, the clock does not reset — only payments made during may have access to employment count. You can check your payment count through your loan servicer's website or by submitting a PSLF form to verify your employment history.
Common may have access to employers include public schools, universities, police departments, fire departments, the military, the VA, the Social Security Administration, and organizations like the Red Cross, Habitat for Humanity, and most hospitals. If you are unsure whether your employer qualifies, the Federal Student Aid office maintains a searchable database on studentaid.gov.
Teacher Loan Forgiveness and the five-year requirement
Teacher Loan Forgiveness is separate from PSLF and is designed specifically for educators. You must teach full-time for five consecutive school years in a public or private school that serves low-income students. The school's location or the percentage of low-income students it serves determines whether it qualifies — this information is available through the Department of Education's school identifier tool.
The forgiveness amount depends on the type of loan and what you taught. Teachers of math, science, special education, or English as a second language in high-need schools can receive up to $17,500 in forgiveness. Other teachers in may have access to schools receive up to $5,000. You cannot use the same period of teaching to receive both Teacher Loan Forgiveness and PSLF — you must choose one program.
You apply for Teacher Loan Forgiveness by submitting a form to your loan servicer after you complete your fifth year of teaching. You will need documentation from your school confirming your employment dates and that the school meets the low-income criteria. Processing typically takes several months.
Income-driven repayment forgiveness after 20 to 25 years
All federal Direct Loans can be forgiven under income-driven repayment plans if you stay in the plan long enough. The four income-driven plans are Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). Under PAYE and REPAYE, remaining balances are forgiven after 20 years of payments. Under IBR and ICR, forgiveness occurs after 25 years.
Your monthly payment is calculated as a percentage of your discretionary income — typically 10 to 20 percent depending on the plan — rather than based on your loan balance. If your income is very low, your payment can be as little as $0 per month. Interest still accrues on unpaid balances, but you are making progress toward forgiveness as long as you are enrolled in the plan and making payments on time.
Forgiveness under income-driven repayment is automatic. You do not submit a form or request forgiveness when you reach the payment count. Your servicer tracks your payments and forgives the remaining balance once you hit the required number. Forgiven amounts may be treated as taxable income in the year forgiveness occurs, though this rule has changed multiple times and you should confirm the current tax treatment with a tax professional.
Loans that do not may have access to for forgiveness
Parent PLUS loans are not may be able to access for PSLF or income-driven repayment forgiveness. Parent PLUS borrowers can only receive forgiveness through income-contingent repayment if they consolidate their Parent PLUS loans into a Direct Consolidation Loan first — this converts them to a federal loan type that qualifies. After consolidation, the same 25-year forgiveness timeline applies.
Private student loans are never forgiven under any federal program. If you have private loans, your only options are to pay them in full, negotiate a settlement with the lender, or explore whether your private lender offers its own forgiveness program — which is rare and usually limited to specific circumstances like permanent disability or the borrower's death.
Federal loans in default are not may be able to access for forgiveness programs until you bring them current. If you are in default, you must first rehabilitate your loan by making nine on-time payments over ten months, or consolidate the defaulted loan into a new Direct Consolidation Loan. After that, you can enroll in a forgiveness program.
How to track your progress toward forgiveness
Your loan servicer maintains a record of your may have access to payments. You can log into your servicer's website using your FSA ID to see your current payment count and remaining balance. For PSLF, you can also submit a PSLF form annually or whenever you change employers to have your employment verified and your payment count certified.
If you are pursuing income-driven repayment forgiveness, recertify your income every year when your plan requires it — usually annually. Failure to recertify can result in your plan ending and your payments reverting to the standard 10-year repayment schedule. Set a calendar reminder for your recertification due date so you do not miss the deadline.
If you believe your payment count is incorrect, contact your servicer in writing and request a review. Provide documentation of your employment history or payment records. Disputes can take several months to resolve, so start the process as soon as you notice a discrepancy.
Frequently Asked Questions
Can I get forgiveness if I have already paid off my loans?
No. Forgiveness programs only apply to remaining balances at the time forgiveness is granted. If you have already paid your loans in full, you cannot retroactively receive forgiveness or a refund. Some borrowers who paid aggressively before PSLF became widely known have pursued legal claims, but these have not resulted in broad refunds.
What happens to the forgiven amount on my taxes?
Under current law, forgiven amounts under PSLF and Teacher Loan Forgiveness are not treated as taxable income. Forgiven amounts under income-driven repayment may be taxable, though Congress has temporarily suspended this tax for forgiveness occurring through 2025. Consult a tax professional about your specific situation, as tax rules have changed and may change again.
If I am on an income-driven plan, do I have to stay in it for 20 years to get forgiveness?
Yes, you must remain in an income-driven repayment plan and continue making payments for the full 20 to 25 years to reach forgiveness. If you switch to a different repayment plan, your payment count resets to zero. Payments made under other plans do not count toward the forgiveness threshold.
Can I use PSLF and Teacher Loan Forgiveness for the same loans?
No. You must choose one program. If you are a teacher in a may have access to school, you can receive up to $17,500 under Teacher Loan Forgiveness, or you can pursue PSLF if you continue working in public service. You cannot receive both for the same period of employment.
What if my employer is not on the list of may have access to employers for PSLF?
Check the Federal Student Aid employer search tool on studentaid.gov to confirm. If your employer is not listed and you believe it should be, you can submit a request to have it reviewed. If it is truly ineligible, you cannot count that employment toward PSLF, but you can still pursue income-driven repayment forgiveness if you have federal Direct Loans.