How To Handle Student Debt: 15 Forgiveness Options You Have
Student loans can feel like an unshakable burden, but forgiveness programs offer a way out. Many borrowers qualify without realizing it and miss out on available benefits. Understanding eligibility rules and repayment strategies makes a big difference. Here are 15 options that could help you.
Apply For Public Service Loan Forgiveness (PSLF)
For borrowers in government or nonprofit roles, PSLF provides a path to full loan forgiveness after 120 payments under an income-driven repayment (IDR) plan. However, not all payments count—only those made while enrolled in an IDR plan. To avoid setbacks, check employer eligibility on the Federal Student Aid website before proceeding.
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Enroll In An Income-Driven Repayment (IDR) Plan
Choosing an IDR plan adjusts your monthly payments based on income and family size. This helps you maintain affordability while working toward forgiveness after 20–25 years. While many assume IDR reduces interest rates, it doesn’t. Instead, it prevents default and keeps long-term forgiveness within reach. Remember to recertify annually to stay eligible.
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Seek Teacher Loan Forgiveness
Educators who commit to five consecutive years in low-income schools may qualify for up to $17,500 in loan forgiveness. However, this program cannot be combined with PSLF—borrowers must choose the most beneficial option. To maximize relief, explore additional state programs that offer teacher-specific assistance.
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Apply For National Health Service Corps (NHSC) Loan Repayment
Medical professionals like doctors, dentists and mental health providers working in high-need communities can qualify for up to $55,000 in repayment help. NHSC participants must work full-time at a facility approved by NHSC. To avoid costly mistakes, verify your employer’s eligibility early and keep your repayment on track.
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Qualify For Federal Perkins Loan Cancelation
If you work in education, firefighting, nursing or public service, your Perkins Loans could be completely forgiven after five years of service. Many mistakenly assume this is part of PSLF, but it’s an independent program requiring direct employer certification. Stay proactive by tracking progress through annual verification forms.
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Use The Indian Health Service Loan Repayment Program
Health care professionals serving Native American communities can access up to $40,000 in forgiveness through this initiative. Despite similarities with NHSC, this program operates separately. It requires applicants to serve in facilities approved specifically by the Indian Health Service.
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Consider Military Service Loan Forgiveness
Active-duty military members can access loan forgiveness programs like PSLF and special repayment plans for their branch. Eligibility rules differ depending on role, enlistment status or length of service. It’s important to review all military benefits thoroughly before making decisions about your loans.
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Apply For State-Based Loan Repayment Assistance Programs (LRAPs)
Many states provide LRAPs that offer student loan relief for professionals in fields like education, health care and law. These programs can complement federal options, but benefits and eligibility rules differ widely among states. Research your state’s offerings to find the best support for your loan repayment needs.
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Seek Employer-Based Student Loan Repayment Assistance
Increasingly, companies are incorporating student loan repayment benefits into their compensation packages. However, many employees never explore these options simply because they don’t ask. To uncover potential savings, consult your HR about available reimbursement programs—you might be missing out on thousands of dollars in relief.
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Utilize Borrower Defense To Repayment
Borrowers affected by fraudulent or deceptive practices at their school might be eligible for full loan discharge. Not all claims are accepted, so focus on proving that your case involves misleading information about programs or job placements. Providing detailed evidence boosts your chances of approval.
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Apply For Total And Permanent Disability Discharge
Borrowers who are unable to work because of severe disabilities can have their federal student loans fully discharged. Some assume this process is lengthy, but automatic approvals now exist for those identified by Social Security Administration records. If eligible, submit medical certification for faster processing.
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Request Loan Cancelation For School Closure
If your school shut down before you completed your program, you may be eligible for full loan cancellation. Many fear their closed school loans remain valid, but if you were enrolled at the time of closure or withdrew shortly before, your debt can be erased. Check official closure dates to confirm eligibility.
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Take Advantage Of The Students To Service Program
Final-year medical students can receive up to $120,000 in loan repayment assistance for committing to high-need areas after graduation. A common misconception is that this program covers all medical professionals, but it is strictly for students nearing the completion of their degree.
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Utilize The NURSE Corps Loan Repayment Program
Nurses and nurse practitioners serving in critical shortage areas can receive up to 85% of their loans forgiven. However, not every health care facility qualifies. Before applying, verify your workplace designation to ensure eligibility. This step is important—many applicants overlook this requirement and miss out on substantial benefits.
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Stay Updated On New Loan Forgiveness Programs
Federal and state student loan policies evolve frequently, offering new opportunities. Not all forgiveness program options are fixed, and new laws may introduce additional relief pathways. Regularly monitor updates from the U.S. Department of Education to avoid missing out on expanded eligibility.
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