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Student loan debt is a major issue. Nearly 43 million people — about one in six American adults — have outstanding federal student loans. For the millions of borrowers with federal loans, loan forgiveness can provide substantial relief. Eligible borrowers can qualify for forgiveness of thousands of dollars, allowing them to pursue other financial or career goals.

Since the start of President Trump's second term, there have been significant changes to the federal student loan system, and more updates are expected in the near future. However, student loan forgiveness is still possible through several programs.

Federal loan forgiveness programs

Federal loan forgiveness programs are for existing borrowers who earn forgiveness through their employment or payment history. Currently, there are four active programs:

Income-Driven Repayment (IDR) Forgiveness

Who is eligible: Borrowers with Direct Subsidized, Unsubsidized, Grad PLUS, and FFEL or Perkins Loans made to students (if consolidated with a Direct Consolidation Loan)

Borrowers who cannot afford their loan payments under a standard 10-year repayment plan may be eligible for reduced payments under an IDR plan. These plans recalculate your payment amount based on your discretionary income and family size, and they have loan terms of 20 or 25 years.

If you still have an outstanding balance at the end of the new repayment term, the remainder of your debt is forgiven.

Borrowers can currently apply for three IDR plans. However, the Trump administration is challenging IDR loan forgiveness under Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), and the now-defunct Saving on a Valuable Education (SAVE) plan. IDR forgiveness is currently paused for borrowers under these plans, so the only plan available to borrowers interested in loan forgiveness is Income-Based Repayment (IBR). See the latest updates on the Federal Student Aid site.

Public Service Loan Forgiveness (PSLF)

Who is eligible: Borrowers with Direct Subsidized, Unsubsidized, or PLUS Loans who work full-time for a qualifying employer

PSLF is a program for nonprofit and government employees who work in public service for at least 10 years and make 120 monthly payments. After meeting the payment and employment requirements, the remaining balance is forgiven.

Under PSLF, payments made under an IDR plan are qualifying payments.

In March 2025, President Trump issued an executive order regarding PSLF. The executive order amends what organizations qualify as eligible employers. The Department of Education said it is reviewing the executive order, but it has not instituted any changes to PSLF yet. Visit the Federal Student Aid site for the most up-to-date information.

Perkins Loan Cancellation and Discharge

Who is eligible: Borrowers with Perkins Loans who are teachers, law enforcement officers, first responders, public or community defender attorneys, non-profit employees, military service members, and healthcare practitioners.

The Perkins Loan program provided low-interest loans to undergraduate and graduate students with exceptional financial need. The program was discontinued, and the last loans were issued in 2018.

Depending on your employment, you can qualify for forgiveness of a percentage of your debt for each year of service, up to a maximum of 100%:

• 15% per year for the first and second year of service

• 20% per year for the third and fourth year

• 30% for the fifth year

Visit Federal Student Aid to see if you qualify.

Teacher Loan Forgiveness

Who is eligible: Elementary and secondary school teachers who have Direct Subsidized or Unsubsidized Loans or Subsidized or Unsubsidized Stafford Loans.

Qualifying teachers must work for an eligible elementary school, secondary school, or educational service agency that serves low-income students. You must teach full-time for five full and consecutive years.

The program provides up to $17,500 of loan forgiveness. To qualify for the full amount, you must meet the following criteria:

• You're a highly qualified mathematics or science teacher at the secondary level.

• You're a highly qualified special education teacher working with special needs children at the elementary or secondary level.

If you don't fit either of those categories, the maximum forgiveness amount is $5,000.

Loan discharge programs

Loan forgiveness can be earned through employment or by making payments toward your debt for a specific period. But in some cases, you can qualify for a student loan discharge because of circumstances outside of your control, such as a disability or school closure.

How much of your loans can be forgiven and the qualifying circumstances vary by loan type:

Bankruptcy discharge

If you declare bankruptcy and file an adversary proceeding action — basically, a complaint asking the court to rule on a specific issue — the court may rule that repaying the loans would cause you undue financial hardship. If that's the case, the loans will be discharged.

Borrower defense to repayment

If you took out loans to attend a college that misled you or engaged in misconduct, including violating federal or state laws, Direct Loan borrowers may be eligible for Borrower Defense to Repayment.

There is currently an injunction issued by federal courts that prevents the Department of Education from making any decisions on borrower defense to repayment applications. You can still apply for this form of loan cancellation online, but no action will be taken until the injunction is lifted. Get the latest updates on the Federal Student Aid site.

Closed school discharge

If your college closed while you were in school or within 180 days of your withdrawal date, you could qualify for discharge of up to 100% of your loan balance.

There is currently an injunction concerning closed school discharges. You can still apply for discharge, but the Department of Education will not process or approve applications until the injunction is lifted. Get the latest updates on the Federal Student Aid site.

Death Discharge

If you pass away — or the student on whose behalf you took out a parent PLUS Loan dies — the remaining balance is discharged.

False Certification Discharge

If a school falsely certified your eligibility for loans — such as a school stating that you graduated from high school when you haven't earned a diploma — false certification discharge can eliminate your debt.

Total and Permanent Disability Discharge (TPDD)

If you become totally and permanently disabled, the government will discharge up to 100% of your outstanding federal loans.

State forgiveness programs

Some states operate their own loan forgiveness or repayment programs to attract and retain workers in high-need areas. Unlike federal forgiveness programs, which are only for federal student loans, state programs often offer forgiveness or loan repayment for both federal and private loans.

For example:

• Iowa Rural Veterinarian Loan Repayment Program: In this program, veterinarians in Iowa can receive up to $60,000 to repay their student loans over four years. In exchange, the veterinarian must work in a designated veterinarian shortage area.

• New Mexico Public Service Law Loan Repayment Program: In New Mexico, attorneys that provide legal services to low-income or underserved communities can qualify for up to $7,200 per year in loan repayment assistance.

• New Jersey STEM Loan Redemption Program: New Jersey workers in science, technology, engineering, and mathematics who are employed by a qualifying employer can qualify for up to $2,000 in annual loan repayment assistance, up to a maximum of $8,000.

Stuck with private student loans with high interest rates? Refinancing your private student loans could mean lower monthly payments and paying less interest overall.

This article was edited by Alicia Hahn