Student Debt Forgiveness, Cancellation, and Discharge
Public Service Loan Forgiveness
The Public Service Loan Forgiveness program (PSLF) forgives the remaining balance on federal Direct Loans for employees of charitable nonprofits and government organizations after those employees make qualifying payments for 120 months (10 years). PSLF requires being on an income driven repayment plan, but can be a great option for many borrowers.
- Learn the basics here: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
- Utilize the PSLF Help Tool on StudentAid to certify your eligible employment: https://studentaid.gov/pslf/
For a step-by-step breakdown to access the program, view this guide: https://www.cancelmystudentdebt.org/pslf-step-by-step-guide
Public Service employers can benefit from sharing this information with their staff and constituents, too. View a guide for employers here: https://www.cancelmystudentdebt.org/pslf-employer-toolkit
Income-Driven Repayment and Forgiveness
Income-Driven plans also offer an opportunity for debt forgiveness through “Income Driven Repayment Forgiveness” after 20 -25 years (depending on your plan). This means that borrowers who pay diligently and on time for 20-25 years can become student-loan debt free, regardless of how much they have paid over time.
The SAVE plan also offers “early IDR forgiveness” for those with lower original loan balances. Actual time required will depend on your original balance and whether your loans are from graduate or undergraduate education, but original loan amounts $12,000 or less can achieve forgiveness in as little as 10 years. Learn more about SAVE forgiveness here: https://studentaid.gov/announcements-events/save-plan#early-forgiveness
Other Discharge, Cancellation, and Forgiveness
There are other options for discharging your student debt besides PSLF and IDR forgiveness, if you meet certain requirements. Other cancellation and forgiveness options include:
- Total and Permanent Disability Discharge
- Teacher Loan Forgiveness
- Federal Perkins Loan Teacher Cancellation
- Military Benefits
https://studentaid.gov/manage-loans/forgiveness-cancellation