What Are the Different Types of Student Loan Forgiveness?

Student loan forgiveness is a program that allows borrowers to have their student loans forgiven, either in full or in part. There are a variety of student loan forgiveness programs available, each with its own eligibility criteria and requirements. Understanding the different types of student loan forgiveness can help borrowers find the program that best suits their needs.

Federal Student Loan Forgiveness Programs

Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your direct loans after you have made 120 qualifying monthly payments while working full-time for a qualifying employer.

• Eligibility: To be eligible for PSLF, you must:
• Be employed by a government or nonprofit organization
• Have made 120 qualifying monthly payments on your direct loans
• Be in good standing on your loans

Application process: To apply for PSLF, you must submit a PSLF application to the U.S. Department of Education. The application is available online at StudentAid.gov.

Benefits and limitations: PSLF can forgive the entire remaining balance on your direct loans. However, there are some limitations to the program. For example, you can only receive PSLF forgiveness once, and you cannot receive PSLF forgiveness if you have defaulted on your loans.

Teacher Loan Forgiveness

The Teacher Loan Forgiveness program forgives up to $17,500 in federal student loans for teachers who teach full-time for five consecutive years in a low-income school or educational service agency.

• Eligibility: To be eligible for Teacher Loan Forgiveness, you must:
• Be a teacher who teaches full-time for five consecutive years in a low-income school or educational service agency
• Have direct loans or Stafford loans
• Be in good standing on your loans

Application process: To apply for Teacher Loan Forgiveness, you must submit a Teacher Loan Forgiveness application to the U.S. Department of Education. The application is available online at StudentAid.gov.

Benefits and limitations: Teacher Loan Forgiveness can forgive up to $17,500 in federal student loans. However, there are some limitations to the program. For example, you can only receive Teacher Loan Forgiveness once, and you cannot receive Teacher Loan Forgiveness if you have defaulted on your loans.

Perkins Loan Cancellation

The Perkins Loan Cancellation program cancels all or a portion of your Perkins Loans if you work in certain public service jobs.

• Eligibility: To be eligible for Perkins Loan Cancellation, you must:
• Work full-time in a public service job for at least 10 years
• Have Perkins Loans
• Be in good standing on your loans

Application process: To apply for Perkins Loan Cancellation, you must submit a Perkins Loan Cancellation application to the U.S. Department of Education. The application is available online at StudentAid.gov.

Benefits and limitations: Perkins Loan Cancellation can cancel all or a portion of your Perkins Loans. However, there are some limitations to the program. For example, you can only receive Perkins Loan Cancellation once, and you cannot receive Perkins Loan Cancellation if you have defaulted on your loans.

State-Based Student Loan Forgiveness Programs

In addition to federal student loan forgiveness programs, there are also a number of state-based student loan forgiveness programs available. These programs vary from state to state, but they typically offer loan forgiveness to borrowers who work in certain public service jobs or who live in certain areas.

To find out if you are eligible for a state-based student loan forgiveness program, you should contact your state's higher education agency.

Other Types Of Student Loan Forgiveness

Closed School Discharge

Closed School Discharge is a program that discharges your federal student loans if your school closes while you are enrolled or within 120 days of your withdrawal.

• Eligibility: To be eligible for Closed School Discharge, you must:
• Have been enrolled at a school that closed while you were enrolled or within 120 days of your withdrawal
• Have federal student loans
• Be in good standing on your loans

Application process: To apply for Closed School Discharge, you must submit a Closed School Discharge application to the U.S. Department of Education. The application is available online at StudentAid.gov.

Benefits and limitations: Closed School Discharge can discharge all of your federal student loans. However, there are some limitations to the program. For example, you cannot receive Closed School Discharge if you have defaulted on your loans.

Borrower Defense to Repayment

Borrower Defense to Repayment is a program that allows you to discharge your federal student loans if you were defrauded by your school.

• Eligibility: To be eligible for Borrower Defense to Repayment, you must:
• Have been defrauded by your school
• Have federal student loans
• Be in good standing on your loans

Application process: To apply for Borrower Defense to Repayment, you must submit a Borrower Defense to Repayment application to the U.S. Department of Education. The application is available online at StudentAid.gov.

Benefits and limitations: Borrower Defense to Repayment can discharge all of your federal student loans. However, there are some limitations to the program. For example, you cannot receive Borrower Defense to Repayment if you have defaulted on your loans.

Total and Permanent Disability Discharge

Total and Permanent Disability Discharge is a program that discharges your federal student loans if you are totally and permanently disabled.

• Eligibility: To be eligible for Total and Permanent Disability Discharge, you must:
• Be totally and permanently disabled
• Have federal student loans
• Be in good standing on your loans

Application process: To apply for Total and Permanent Disability Discharge, you must submit a Total and Permanent Disability Discharge application to the U.S. Department of Education. The application is available online at StudentAid.gov.

Benefits and limitations: Total and Permanent Disability Discharge can discharge all of your federal student loans. However, there are some limitations to the program. For example, you cannot receive Total and Permanent Disability Discharge if you have defaulted on your loans.

There are a variety of student loan forgiveness programs available to borrowers, each with its own eligibility criteria and requirements. It is important to explore all available options for student loan forgiveness to find the program that best suits your needs. If you are struggling to repay your student loans, contact your loan servicer or the U.S. Department of Education to learn more about your options.