Student loan relief options are programs and plans designed to make repaying your student loans more manageable or, in some cases, to forgive a portion or all of your debt. As someone who has navigated the complexities of student loans, I understand how overwhelming the process can be.
Student loan debt is a significant burden for many, affecting millions of people across the country. Whether you’re just starting to repay your loans or have been making payments for years, knowing your relief options is crucial.
In this article, I’ll walk you through the various student loan relief options available, focusing on federal programs since they offer the most comprehensive relief. I’ll also touch on what to do if you have private loans, as their options are more limited.
These options primarily apply to federal student loans, which are issued by the government, as opposed to private loans, which are offered by banks and other financial institutions. Federal loans come with more borrower-friendly features, including various forgiveness and repayment plans. Understanding these options can help you take control of your financial future.
What Are Student Loan Relief Options?
Student loan relief options are ways to ease the burden of repaying your student loans. These can include forgiveness programs, where part or all of your loan is canceled, or repayment plans that make your monthly payments more affordable.
Most of these options are available only for federal student loans, which are loans issued by the U.S. Department of Education. Private student loans, on the other hand, have fewer relief options and are rarely forgiven. In this section, I’ll explain the difference between federal and private loans and why relief options are more robust for federal loans.
Federal vs. Private Student Loans
- Federal Student Loans: These are loans provided by the government and include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Perkins Loans (though Perkins Loans are no longer available for new borrowers). Federal loans come with benefits like income-driven repayment plans, forgiveness programs, and deferment or forbearance options. You can check your federal loan details by logging into StudentAid.gov.
- Private Student Loans: These are loans offered by banks, credit unions, and other private lenders. They typically have higher interest rates and fewer repayment options. Forgiveness is rare for private loans, usually only occurring in cases of death or total and permanent disability. You can find private loan information on your credit report, available for free annually from the three major credit bureaus.
Since federal loans offer more relief options, I’ll focus on those in this article. However, I’ll also cover what you can do if you have private loans.
Federal Student Loan Forgiveness Programs
Federal student loans offer several forgiveness programs, each with its own set of eligibility requirements. These programs can be a lifeline for borrowers who work in public service, teach in low-income schools, or have low incomes. Below, I’ll explain the most common federal forgiveness programs.
Public Service Loan Forgiveness (PSLF)
If you work in public service, such as for the government or a nonprofit organization, you might be eligible for Public Service Loan Forgiveness (PSLF). This program forgives the remaining balance of your Direct Loans after you’ve made 120 qualifying monthly payments (about 10 years) while working full-time for a qualifying employer.
Qualifying employers include government organizations at any level (federal, state, local, or tribal), 501(c)(3) nonprofit organizations, and certain other nonprofits that provide qualifying public services, such as emergency management or public health.
To qualify, you must have Direct Loans. If you have Federal Family Education Loans (FFEL) or Perkins Loans, you may need to consolidate them into a Direct Consolidation Loan. Your payments must be made under an income-driven repayment plan or the 10-year Standard Repayment Plan.
To ensure your payments count, certify your employment annually using the PSLF Help Tool on StudentAid.gov. The American Federation of Teachers notes that almost all its members qualify for PSLF, highlighting its broad applicability for public sector workers (AFT PSLF).
Teacher Loan Forgiveness
Teachers can receive up to $17,500 in loan forgiveness through the Teacher Loan Forgiveness Program. To qualify, you must be a full-time teacher for five complete and consecutive academic years at a low-income school or educational service agency.
The school must be listed in the Teacher Cancellation Low Income (TCLI) Directory. Highly qualified teachers of math, science, or special education at the secondary level, and teachers of any subject at the elementary level in certain schools, can qualify for the higher amount of $17,500. Other eligible teachers may qualify for up to $5,000.
Only Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans are eligible. Direct PLUS Loans, FFEL PLUS Loans, and Perkins Loans are not eligible. Time spent teaching for AmeriCorps benefits or counted toward PSLF does not count toward the five years required for this program.
You can check eligible schools and apply through StudentAid.gov. If you’re a teacher, you might also consider PSLF, as it has no cap on the forgiveness amount and may be a better option if you plan to work in public service for 10 years or more (Student Loan Borrowers Assistance).
Income-Driven Repayment Plans
Income-driven repayment (IDR) plans are a key student loan relief option, as they cap your monthly payments based on your income and family size, and after a certain number of years, any remaining balance is forgiven. There are four IDR plans, each with unique features. You can apply for these plans for free at StudentAid.gov. Below is a detailed breakdown:
| Plan | Monthly Payment (% of Discretionary Income) | Forgiveness Time Frame | Key Notes |
|---|---|---|---|
| Saving on a Valuable Education (SAVE) | 10% (5% for undergrad loans starting July 2024) | 20 years (undergrad), 25 years (any grad) | Interest subsidy; forgiveness after 10 years for loans ≤$12,000, +1 year per $1,000 above |
| Income-Based Repayment (IBR) | 15% (10% for new borrowers) | 25 years (20 years for new borrowers) | No enrollment after 60+ SAVE payments post-July 1, 2024 |
| Pay As You Earn (PAYE) | 10%, capped at 10-year Standard Plan | 20 years | No new enrollments after July 1, 2024 |
| Income-Contingent Repayment (ICR) | Lesser of 20% or 12-year fixed plan | 25 years | No new enrollments post-July 1, 2024, unless include a parent PLUS loan |
- SAVE Plan: This is the newest and most popular IDR plan, with 8 million borrowers enrolled, 4.5 million of whom qualify for $0 payments based on low income (NerdWallet SAVE Plan). Payments are 10% of discretionary income, dropping to 5% for undergraduate loans in July 2024. If your payment doesn’t cover the interest, the government covers the rest, preventing your loan balance from growing. Forgiveness occurs after 20 years for undergraduate loans or 25 years if you have graduate loans. For loans of $12,000 or less, forgiveness can happen after 10 years, with an additional year for every $1,000 above that.
- IBR Plan: Payments are 15% of discretionary income (10% for new borrowers after July 1, 2014), capped at what you’d pay under the 10-year Standard Plan. Forgiveness occurs after 25 years (20 years for new borrowers). After July 1, 2024, you can’t enroll if you’ve made 60 or more payments under the SAVE Plan.
- PAYE Plan: Payments are 10% of discretionary income, capped at the 10-year Standard Plan payment. Forgiveness happens after 20 years. No new enrollments are allowed after July 1, 2024, and you can’t reenroll if you leave the plan after that date.
- ICR Plan: Payments are the lesser of 20% of discretionary income or what you’d pay on a 12-year fixed plan adjusted for income. Forgiveness occurs after 25 years. No new enrollments are allowed after July 1, 2024, unless your Direct Consolidation Loan includes a parent PLUS loan.
Most federal student loans are eligible for IDR plans, but parent PLUS loans are only eligible for ICR after consolidation. You must recertify your income and family size annually, either automatically through federal financial data or manually with documents like tax returns or pay stubs.
The Loan Simulator can help you estimate payments and compare plans. Note that forgiven amounts may be taxable at the state level, so check your state’s tax laws.
Other Federal Assistance Programs
Beyond forgiveness programs, the federal government offers additional ways to help with student loan repayment:
- Military Service Members: If you’re in the military, you may benefit from interest rate caps under the Servicemembers Civil Relief Act, which limits interest to 6% during active duty. The Department of Defense also offers student loan repayment programs for certain service members. Additionally, your military service can count toward PSLF if you have Direct Loans. For more details, visit StudentAid.gov.
- AmeriCorps: If you complete a term of service in an approved AmeriCorps program (such as AmeriCorps VISTA, NCCC, or State and National), you’re eligible for a Segal AmeriCorps Education Award. This award can be used to repay qualified student loans. Your AmeriCorps service can also count toward PSLF, making it a dual benefit for public service workers (Federal Student Aid Forgiveness).
State-Specific Loan Repayment Programs
Many states offer loan repayment assistance programs, often targeting professions like teachers, nurses, doctors, and lawyers, especially those working in underserved areas. These programs may provide grants or other financial incentives to help repay student loans, and some may even apply to private loans.
For example, Mississippi’s Winter-Reed Teacher Loan Repayment Program offers up to $6,000 per year for teachers with specific licenses working in certain areas (NerdWallet Forgiveness Programs).
To find out if your state has such a program, visit your state’s higher education website or contact your state’s education department. Professional associations, like the American Bar Association for lawyers, may also list state-specific programs.
Private Student Loans
Private student loans, issued by banks or other private lenders, have very limited relief options compared to federal loans. Forgiveness is typically only available in cases of death or total and permanent disability (NerdWallet Private Loan Forgiveness). However, you may have other options to manage your payments:
- Deferment or Forbearance: Some lenders offer temporary pauses or reductions in payments, but interest usually continues to accrue, increasing your loan balance.
- Refinancing: You might refinance your private loans to get a lower interest rate, which can reduce your monthly payments. Be cautious, as refinancing federal loans into private loans makes them ineligible for federal relief programs.
- Autopay Discounts: Many private lenders offer a 0.25% interest rate reduction if you set up automatic payments, for example, lowering your rate from 3.5% to 3.25% (CFPB Private Loans).
- State Programs: In rare cases, state repayment programs for specific professions may apply to private loans.
If you’re struggling with private loan payments, contact your lender immediately to discuss options. Reviewing your loan agreement can also clarify what relief is available. Avoid defaulting, as it can damage your credit.
Beware of Scams
When seeking student loan relief, be cautious of companies that promise quick forgiveness or charge fees for services you can access for free. The federal government does not charge for loan forgiveness applications, and all legitimate programs are available through StudentAid.gov.
Scammers may use official-sounding names or claim to eliminate your debt for a fee, but these services are often ineffective or fraudulent. The Consumer Financial Protection Bureau warns that verified emails come only from addresses like noreply@studentaid.gov (CFPB Student Loan Forgiveness).
FAQs
- Who qualifies for student loan forgiveness?
Eligibility depends on the program. For PSLF, you need to work full-time for a qualifying employer and make 120 qualifying payments on Direct Loans. Teacher Loan Forgiveness requires five years of full-time teaching at a low-income school. IDR plans are available to most federal loan borrowers, with payments based on income and family size. - How do income-driven repayment plans work?
IDR plans set your monthly payment based on your income and family size, sometimes as low as $0. After 20 or 25 years of payments, any remaining balance is forgiven, though you might owe taxes on the forgiven amount. Apply at StudentAid.gov and recertify your income annually. - Can private student loans be forgiven?
Private student loans are rarely forgiven, typically only in cases of death or total and permanent disability. Some lenders offer deferment or forbearance, and certain state programs may help with repayment for specific professions. - What should I do if I’m struggling to pay my student loans?
Contact your loan servicer immediately to discuss options like IDR plans, deferment, or forbearance for federal loans. For private loans, ask your lender about hardship programs or refinancing. Use the Loan Simulator to explore federal repayment plans and check state programs for additional help.
Key Citations
- Federal Student Aid Official Website
- Consumer Financial Protection Bureau Student Loan Forgiveness
- NerdWallet 14 Student Loan Forgiveness Programs for 2025
- Federal Student Aid Student Loan Forgiveness Information
- NerdWallet Private Student Loan Forgiveness
- Consumer Financial Protection Bureau Private Student Loan Repayment
- American Federation of Teachers PSLF Program
- Student Loan Borrowers Assistance Teacher Loan Forgiveness