With 43 million Americans owing $1.7 trillion in student loans, having them erased, forgiven, or dismissed is a fantasy for some. Following the loan forgiveness, the borrower no longer needs to make payments towards the principal and interest.

Loan servicers are important in managing your student loan debts. Some student debts aren’t forgivable, but there are programs like student loan forgiveness plans and student loan repayment assistance that can help. Under some conditions, such as military duty or volunteer work, the federal government may revoke a federal student loan. It includes Pell Grants, Perkins Loans, and unsubsidized loans for federal borrowers.

In some scenarios, the federal government may erase a student loan debt owing to events beyond the borrower’s control, such as permanent incapacity, death, loan discharge, loan falsification, and school closure during a school session. A Direct consolidation loan can help manage multiple federal student loans and choose a suitable student loan repayment plan.

Various options are available for student loan repayment plans, such as Income-contingent repayment and credit toward loan forgiveness. It is important to stay up to date with loan payments to avoid defaulted loans. Federal student loan forgiveness programs are available through an online application; some even offer a one-time account adjustment.

Loan repayment assistance programs provide student debt relief and debt cancellation to eligible borrowers. Student loan repayment benefits may support those struggling to pay off their private loans as well as federal ones.

Remember that private student loans are not eligible for federal student loan repayments and forgiveness programs. However, student loan borrowers can still seek assistance from student loan servicers and explore options for private loans.

Student Loan Tutor’s Functions

Loans Tutor is your ideal servicer. Your loans are like ours. Your Tutor will build a bespoke repayment scheme to save you the most money for a set cost. We handle all documentation and servicer follow-up to remedy problems and meet deadlines. As your financial circumstances and new regulations change, we’ll ensure you save the most.

Rixloans Forgiving?

Public Service Debt Forgiveness and Income-Driven Repayment Forgiveness are prominent student loan forgiveness programs.

Government loan forgiveness (PSLF)

PSLF, or Public Service Loan Forgiveness, targets millions of borrowers in government or non-profit public sector positions. It is considered a qualifying service for loan forgiveness.

Under PSLF, borrowers must make 120 on-time payments while working for an eligible employer, such as a municipal, state, or federal government or a tax-exempt non-profit. The Department of Education oversees this program.

Debtors must pay minimal installments after ten years of monthly payments to an eligible employer. Police officers, nurses, physicians, educational service agency employees, social professionals, etc., working for approved businesses are qualified.


Income-Driven Repayment (IDR) is an income-based repayment program that adjusts your payment based on your discretionary income, family size, and taxable income. It relieves loan holders with high college costs and low-income levels, making their monthly payments more manageable.

IDR may include loan cancellation after a certain repayment period (usually 20-25 years), depending on the current loan balance and eligibility. This program deals with outstanding student loans and helps manage debt from various sources, such as Pell Grant, Program loans, and educational loans.

Secondary schools and universities offer guidance on the application process, and the education department provides additional resources. Current employees in eligible positions may also receive credit toward student loan forgiveness through their jobs.

Some borrowers may qualify for other types of loan relief, like Closed School Discharge and military service forgiveness, or get help through service agreements that alleviate the financial burden.

Loans Tutor assists you in navigating these forgiveness programs and understanding your additional student loan repayment options, aiming to minimize the financial harms associated with student loans.

Non-PSLF borrowers may use Income-Driven Repayment. This longer option may take 20 to 26 years to discharge student loans. A one-time adjustment to an acceptable level may be made depending on the borrower’s marital status and income.

Federal Student Aid offers income-driven payback plans like PAYE, Revised PAYE, income-contingent, and income-based loan repayment. These plans allow flexible repayment terms and access to discharge programs. No work is required, and the programs are for people with high student debt relative to income.

Loan Forgiveness

Eligible borrowers can seek loan forgiveness by making qualifying payments that count as credit toward forgiveness. In the United States, well-known student loan forgiveness programs include:

Military loan forgiveness

National Guard, Air Force, Coast Guard, and Army members may receive debt forgiveness through various programs. The Air Force College Loan Repayment and student loan repayment authority helps military personnel with their loans.

The Federal Family Education Loan Program and Perkins Loan forgiveness for military members are options for forgiveness. The Student Loan Repayment Program gives qualified military people up to $50,000 to pay off federal loans, but it does not cover private loan payments. Military members and veterans must satisfy specific requirements to participate.

Teacher loan forgiveness

The Teacher Loan Forgiveness program is available to instructors who have worked full-time for at least five years. This program can forgive up to $17,500 on undergraduate loans. To obtain eligibility for student loan forgiveness, teachers must work in a low-income school or underprivileged educational service agency (agency for student loan forgiveness).

Other forgiveness programs

Apart from military and teacher loan forgiveness, other programs like Discharge Public Service and student loan discharge plans are available to borrowers in various fields. Certain borrowers may be considered qualified employees based on their occupation, including those in the uniformed service, competitive service, and others.

Eligible employees may benefit from forgiveness programs based on their work in a qualified employee position or by committing to an additional service period. These programs aim to provide broad relief to borrowers in different sectors.

Qualified elementary teachers may obtain $5,000 in debt relief programs. Math, science, and exceptional education instructors may obtain up to $17,500 in Federal Direct Loans or Stafford Loans for married couples with a combined Sallie Mae loan balance.

Teachers who borrowed after Oct. 1, 1998, are eligible as a student borrower. The percentage of student loan that can be forgiven increases with years of service. In the absence of loan repayment, the type of student loan and approval of student loan will determine the eligible loans.

Nursing loan forgiveness

The NURSE Corps program is for nursing practitioners, RNs, and nurse faculty in underprivileged areas. Nurses may utilize loan-forgiveness schemes. Qualified nurses might get 60% of their education debts paid off in two years, joining a debt relief plan based on their employment conditions and agency for employment.

Some states help nurses repay loans. The Illinois Nurse Educator Program forgives up to $5,000 annually for four years for Illinois nurses, considering the cost of college and the disparity in cost between different educational institutions.

Doctor loan forgiveness

Doctors may get debt forgiveness for Federal employment tax purposes. Popular programs include NHSC and IHSL. NHSC offers up to $50,000 in debt forgiveness to dentists, primary care physicians, and behavioral professionals with long-term disability or permanent disability discharge.

Salary levels and the amount of loan forgiveness may be contingent on budget levels for programs like Federal Consolidation Loans. The balance at time of application may also impact the forgiveness amount, and loan closure documents might be required. Married couples with Sallie Mae loans and a student borrower with a high percentage of student loancan benefit from these programs. Before applying, remember to check the terms of the repayment plan and student loan discharge.

Indian Health Services is a two-year curriculum for American Indian and Alaska Native physicians. It forgives $42,000 in student loans and offers level of performance incentives for public servants.

Plan Limitations

The recipient must work for a specified firm or specialty to avoid taxable status for the forgiven debt. Retention incentive programs may be available for those with unacceptable performance.

Note that debt forgiveness through PSLF remains tax-free, while debt forgiveness through IDR is still taxable. Keep in mind that federal defaulted debts are not eligible for forgiveness. To qualify for forgiveness programs such as award loan assistance, such debts must be repaired or consolidated. Defaulted debts may qualify for loan forgiveness programs.


Rixloans provides the Capital Markets & Securities Analyst (CMSA)TM certification. The following resources can help you advance your career and navigate repayment plans, such as the standard repayment plan and student loan discharge:

  • Structured Education Loan
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Complete Rixloans’ online financial modeling courses to become an FMVA®. In addition, you can learn about service completion, employee for repayments made, employee per calendar year, employee reimbursements, employee tax withholdings, and employment tax obligations.

Which loans are available for school-closed government institutions? Learn about employed agency head roles and the applicable service agreement in a disability retirement setting.

In consultation with heads of organizations, discover the cost of recruitment and the determination for recruitment purposes. Understand the non-pay status and the importance of the determination under paragraph in managing an employment tax withholding process. And learn about The cost associated with managing a workforce in this field.

Student loan forgiveness chart

Frequently Asked Questions

How does student loan forgiveness work, and who qualifies for it?

Student loan forgiveness eliminates a borrower’s remaining debt after making qualifying payments over a period of time. Eligibility varies by program but is generally based on employment, loans type, repayment plan, and debt level.

What are the different types of student loan forgiveness programs available, and how do they differ?

Major federal loan forgiveness programs include Public Service Loan Forgiveness, Teacher Loan Forgiveness, Borrower Defense, and Income-Driven Repayment plans, each with specific eligibility criteria.

How can I apply for student loan forgiveness, and what documents do I need to provide?

You can submit forgiveness applications through your loan servicer. Needed documents include your loan information, employment verification for certain programs, and any deferment/forbearance forms.

What happens to my credit score and tax obligations if I receive student loan forgiveness?

Student loan forgiveness does not impact your credit score or result in tax obligations in most cases. However, there are some exceptions depending on program rules.

Are there any recent changes or updates to student loan forgiveness programs that I should be aware of?

Recent changes include a limited waiver making past non-qualifying payments count plus an expansion of the Public Service Loan Forgiveness program through October 2022.

Tom Harold Zeus

Tom Harold is a personal finance and insurance writer who has more than 10 years of experience in covering commercial and personal insurance options. He is also determined to beat her brother, who is a financial advisor with intimate knowledge of the field of personal finance. He devotes time researching the latest rates and rules.