5 ways to get student loan forgiveness in 2024

Student loans are a financial burden for many Americans. The Biden administration attempted to provide some relief with a widespread student loan forgiveness program, but the Supreme Court struck down these efforts during the summer of 2023.

That doesn’t mean you’re left without options to eliminate your debt, though. This guide explains how to get student loan forgiveness so you can better understand when and how you can erase some of your debt.

How to get student loan forgiveness

It’s possible to get student loan forgiveness through several different programs offered by the Department of Education, or by looking into relief options your state offers.

It’s important to note that most loan forgiveness programs generally only apply to federal student debt. This means if you have loans issued by the Department of Education, such as Direct Subsidized or Direct Unsubsidized Loans, you may be eligible for forgiveness. But if you have private student loans, forgiveness is typically not an option.

The right forgiveness program for you will depend on factors including your chosen career, the types of student loans you have, and where you live, among other things.

5 loan forgiveness programs to explore

Here are five student loan forgiveness programs to consider taking advantage of if you meet the eligibility requirements.

1. Income-driven repayment forgiveness

Income-driven repayment forgiveness refers to forgiveness that happens after you make a required minimum number of payments while participating in one of four income-driven payment plans offered by the Department of Education.

Each of these plans caps payments at a percentage of your discretionary income. After you make a certain number of payments — which could be as low as $0 — the remaining balance of your eligible federal debt is canceled.

Income-driven repayment plans you may be able to participate in include the following:

• Saving on a Valuable Education (SAVE): Payments are generally set at 10% of your discretionary income. Any remaining balance is forgiven after 20 years for undergraduate loans, or 25 years for graduate loans. Stay tuned for more SAVE benefits slated to be released in July 2024.
• Pay As You Earn (PAYE): Payments are generally set at 10% of your discretionary income but never more than the maximum you'd pay under the standard 10-year payment plan. Forgiveness of any remaining balance happens after 20 years of payments. You must meet the “new borrower” requirements to qualify for the PAYE plan.
• Income-Based Repayment (IBR): Payments are set at 10% of your discretionary income if you’re a new borrower on or after July 1, 2014, or 15% if you borrowed before that time. Payments can't exceed the Standard Repayment plan amount. If you’re a new borrower, forgiveness happens after 20 years. It happens after 25 years if you aren't.
• Income-Contingent Repayment (ICR): Payments equal the lesser of 20% of your discretionary income or the amount you'd pay on a payment plan with fixed payments over 12 years, adjusted based on income. Forgiveness happens after 25 years of payments.

2. Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is an option for individuals who work full-time at a qualifying not-for-profit or government organization.

To take advantage of this program, you must be enrolled in an income-driven repayment plan while doing this work. You must also have federal Direct Loans issued by the Department of Education (or federal loans consolidated with a Direct Consolidation Loan). Federal Family Education Loans (FFEL) or federal Perkins Loans must be consolidated to be eligible.

After making a total of 120 qualifying payments under PSLF, your remaining loan balance is forgiven. You can use StudentAid.gov’s employer search tool to identify eligible employers, and the PSLF help tool to submit your PSLF form.

3. Teacher Loan Forgiveness

Student loan forgiveness for teachers is also an option worth looking into. You may be eligible for the Teacher Loan Forgiveness program if you work for five consecutive academic years at a low-income educational service agency or school. A minimum of one of those years must have been after the 1997-98 school year.

You must meet certain requirements to be considered a “highly qualified” teacher, including being fully certified by your state and having at least a bachelor's degree. Other criteria may include demonstrating subject knowledge by passing a state-required certification or licensing test. In addition, your loans must meet certain eligibility requirements.

If you’re an eligible math, science, or special education teacher, you can get up to $17,500 of your federal student debt forgiven. Teachers of other subjects can get up to $5,000 in debt forgiven.

4. State-based assistance programs

Many states offer student loan help to students who fulfill certain criteria. These state-sponsored programs are known as Loan Repayment Assistance Programs (LRAPs), which means instead of canceling your debt, they’ll provide you with money to repay your loans in return for your service. These funds can typically be used to pay off both federal and private student loans.

The specific requirements for each program vary, but typically, you must be a resident of the state, work in a specific field — such as health care, law, or education — and serve in a high-need area for several years.

See what's available in your area by checking your state’s Department of Education website or contact your employer or professional association.

5. Loan discharge programs

There are also loan discharge programs available to those who meet certain requirements. For example, you may be eligible to have federal student debt canceled or discharged in the following situations:

• Disability: A discharge is available for federal borrowers who become totally and permanently disabled.
• School closure: Discharge may be available if your school closed while you were enrolled or shortly afterward.
• School misconduct: Certain types of school misconduct, such as failure to return unused loans after your withdrawal, or falsely certifying loan eligibility, can also result in discharge.
• Bankruptcy: Discharge in bankruptcy is difficult, but could be possible if you prove that repaying loans would be an undue burden.
• Death: Federal debt will be discharged if the borrower dies, or, in the case of a parent PLUS loan, if the child of the borrower dies.
• Perkins Loan discharge: Up to 100% of Perkins Loans can be canceled or discharged after you complete eligible employment or volunteer service for a certain number of years and meet other requirements.

Can I get private student loan forgiveness?

Private student loan forgiveness is less common, although policies vary by lender. Forgiveness is generally available only in cases of total and permanent disability or death.

While it’s rare to have your private loans forgiven, you may be able to refinance your loans to reduce your interest rate and make payoff cheaper and easier. Just remember that refinancing doesn’t always make sense, especially if your finances are unstable or your credit isn’t in good shape. Make sure to weigh the pros and cons of refinancing before moving forward with a refinance loan.

What happens after loans are forgiven?

When your student loans are forgiven, you’ll no longer owe the debt, and you won’t have to make any more payments. You’ll get notified about how much of your debt was canceled and, in some cases, you may even receive a partial refund (for example, if your debt was forgiven due to school misconduct).

Depending on the loan forgiveness program, you may be subject to federal or state tax on the forgiven amount. If you’re on an IDR plan, for example, forgiven amounts are temporarily exempt from federal taxation through 2025. Amounts forgiven under PSLF are not taxable by the federal government, but may be taxable by your state.

It’s important to understand whether your loan forgiveness will be taxed so you can plan accordingly.