Student Loan Forgiveness Programs: Complete Guide 2025

Navigate federal student loan forgiveness programs including Public Service Loan Forgiveness, Income-Driven Repayment forgiveness, and state programs.

Student loan forgiveness programs can eliminate thousands of dollars in debt for eligible borrowers. This comprehensive guide covers all federal and state forgiveness programs, application processes, and strategies to maximize debt relief. ## Federal Student Loan Forgiveness Programs **Public Service Loan Forgiveness (PSLF)** - Forgives remaining balance after 120 qualifying payments - Must work full-time for qualifying public service employer - Only Direct Loans are eligible - Must be on income-driven repayment plan - Tax-free forgiveness **Teacher Loan Forgiveness** - Up to $17,500 forgiveness for teachers - Must teach 5 consecutive years in low-income schools - Available for Direct Loans and FFEL Program loans - Cannot combine with PSLF for same teaching service - Subject to income tax on forgiven amount **Income-Driven Repayment Forgiveness** - Forgiveness after 20-25 years of payments - Available on Income-Based Repayment (IBR) - Income-Contingent Repayment (ICR) - Pay As You Earn (PAYE) - Revised Pay As You Earn (REPAYE) ## Public Service Loan Forgiveness Details **Qualifying Employers** - Federal, state, local, tribal governments - 501(c)(3) non-profit organizations - AmeriCorps and Peace Corps - Public schools and universities - Public hospitals and health services **Qualifying Payments** - Made while working full-time (30+ hours/week) - On-time payments (within 15 days of due date) - Full scheduled payment amount - On Direct Loan Program loans only - Under qualifying repayment plan **Application Process** - Submit annual Employment Certification Forms - Track qualifying payments and employers - Apply for forgiveness after 120 payments - Maintain detailed records throughout ## Income-Driven Repayment Plans **Income-Based Repayment (IBR)** - Payments: 10-15% of discretionary income - Forgiveness: After 20-25 years - Available for most federal loan types - Payment cap at standard 10-year amount **Pay As You Earn (PAYE)** - Payments: 10% of discretio