Here is the complete list of student loan forgiveness programs:
1) Public Service Loan Forgiveness
The Public Service Loan Forgiveness program is a federal program that assists those working in public service jobs, such as nonprofits, manage their debt loan through forgiveness after 120 payments (ten years).
Who is eligible?
Full-time employees at a federal, state or local government agency as well as nonprofit workers at an organization with a 501(c)(3) designation. For purposes of this program, religious-based work at a non-profit does not qualify.
- Federal Direct Unsubsidized Stafford/Direct Loans
- Federal Direct PLUS Loans
- Federal Direct Consolidations Loans
It’s important to note that Federal Perkins Loans and Federal Family Education Loans (FFEL) are not eligible for forgiveness through this program unless you consolidate them via a Direct Consolidation Loan from the Department of Education (see below). However, Perkins loans do have their own special cancellation program (more info below).
What are the requirements?
- Make 120 on-time payments towards your Direct Loans
- Payments must be under a qualifying plan. Qualifying plans include: Income-Based Repayment (IBR), Pay As You Earn Repayment (PAYE), Revised Pay As You Earn (REPAYE), Income-Contingent (ICR) and Standard Repayment. (Note that for many borrowers it makes sense to go with an income-driven plan to maximize the amount you will have forgiven and lower monthly payments.)
- Work full-time at a qualifying organization. You do not have to work at the same place for ten years to qualify
How can I become eligible?
Consolidating your loans with federal government can be a good first step when pursuing Public Service Loan Forgiveness. A Direct Loan Consolidation combines all of your federal loans into one new single loan (even previously ineligible loans like Perkins or FFELs can be included and become eligible). During the consolidation process you can also choose an alternative repayment plan.
Elite Student Solutions representative will help you through the consolidation process, and sets you up on an income-driven repayment plan to start moving towards forgiveness.
Currently, there is no limit on the amount forgiven under Public Service Loan Forgiveness. In other words, the full amount of your federal student loans is eligible for forgiveness.
If you have any additional questions, call us today!
2) Teacher Loan Forgiveness
Teachers are a key asset to the community and play an indispensable role in the lives of children. But it’s no secret that teachers are underpaid, which can affect how teachers pay back their student loans for their own education.
Luckily, there is the Teacher Loan Forgiveness Program, which helps forgive a portion of debt.
Who is eligible?
Teachers who work at low-income schools are eligible for this program. Check out the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits to see if your school qualifies.
Which loans are eligible?
Direct Loans and Federal Stafford loans are eligible for student loan forgiveness for teachers. Unfortunately, if you only have PLUS loans, you are not eligible for this program.
What are the requirements?
- You must teach in a low-income elementary or secondary school
- You cannot have loans that originated before October 1, 1998
- Your loans must not be in default
- Work full-time as a teacher for five consecutive years
- Be a highly qualified teacher, which means obtaining state certification and holding a license in the state you teach in
Highly qualified elementary and secondary school teachers may receive up to $5,000 in loan forgiveness.
Teachers that are considered ‘highly qualified’ and teach math, science, or work in special education are eligible for up to $17,500 in student loan forgiveness.
How do you apply?
After teaching for 5 years, you can apply for teacher loan forgiveness by completing the Teacher Loan Forgiveness Application and then return your application to your loan servicer.
3) Teacher Cancellation for Federal Perkins Loans
If you have a Federal Perkins Loan and are interested in pursuing education, you are in luck. You can have up to 100 percent of your loans forgiven, in a short amount of time.
Who is eligible?
Full-time teachers at low-income public or nonprofit elementary or secondary schools or those that specialize in certain subjects, like math, science, and special education.
There are other special circumstances that make teachers eligible for this program. These include: working in a private school that has its nonprofit status, working at an educational service agency or teaching in a designated subject shortage area.
Which loans are eligible?
Only the Federal Perkins Loans are eligible for this program.
What are the requirements?
Teachers must work full-time for a full academic year to qualify for loan cancellation. Qualified teachers are eligible to have:
Qualified teachers are eligible to have:
- 15 percent of their loans cancelled for the first and second years of service
- 20 percent of their loans cancelled for the third and fourth years of service
- 30 percent of their loans cancelled for the fifth year of service
Therefore, after five years of service, qualified teachers with Federal Perkins Loans can have 100 percent of the loans cancelled.
How do you apply?
First you will need to request certain forms from the office that administers the Federal Perkins Loan program at the school that has your loans. You will need to provide various types of documentation, at the school’s request. The school handles determining whether you qualify or not for the loan cancellation.
4) Special Teacher Forgiveness Programs by State
As the burden of student debt increases, some states are coming to the rescue in order to keep their workforce and help borrowers. A number of states have programs that benefit teachers — here is a sample of a few.
New York
The New York City Loan Forgiveness program offers teachers working in certain shortage areas the opportunity to forgive a portion of their loans. The award amount varies, but its value is up to $24,000.
Teachers must work for 6 years in an authorized New York City Department of Education school. Learn more about eligibility, requirements and the application.
Texas
The Teach for Texas Loan Repayment Assistance Program can forgive up to $2,500 for teachers that work in a field as well as a community, where there is a shortage of teachers. Learn more about the program here.
Illinois
The Illinois Teachers Loan Repayment Program is awarded to teachers who work in low-income schools. You must work in a low-income school for 5 years. Teachers must be eligible for a federal loan forgiveness program — this program can make a matching award up to $5,000.
Find out more information about the program here.
5) Special Forgiveness Programs for Doctors by State
Doctors are an asset to society and a necessary part of public health. However, being a doctor comes with years of education and a hefty debt load. Luckily, these states offer some relief in the form of special forgiveness programs for doctors.
New York
The Regents Physician Loan Forgiveness Award Program can help physicians practicing in New York and award up to $10,000 each year, for 2 years. Applicants must be licensed in New York State and have completed residency in the past 5 years. The focus on this program is primary care. Applicants must agree to work in a specific area or work with an underserved population. Find out more.
In addition, there is also the Physician Loan Repayment – Qualified Educational Loan Repayment, which awards up to $150,000 to physicians that commit to a 5-year term of working in an underserved region.
Washington
Healthcare professionals like doctors, nurses, pharmacists and dentists can apply for The Health Professional Loan Repayment Program. This program awards up to $35,000 per year, for 2 years. Healthcare professionals must provide primary care in an underserved or rural area.
Get the full scoop on this program.
Pennsylvania
Primary care practitioners such as doctors and dentists can get up to $100,000 (yes, really) awarded for working full-time for two years with medically underserved populations.
Physicians must be licensed in Pennsylvania and meet certain requirements. Learn more about this program, which has one of the best awards we’ve seen.
6) Federal Perkins Loan Discharge for Nurses
Did you use Federal Perkins Loans to pay for your schooling? If you work as a full-time nurse, you might be eligible for up to 100 percent of your loans discharged.
What are the requirements?
You must be a registered nurse and employed full-time. Loans aren’t discharged immediately, though; instead, they are discharged over five years.
How do you apply?
You can apply through your loan servicer or through the school that disbursed the loans.
7) NURSE Corps Loan Repayment Program
If you work in an underserved community, you might be eligible for the NURSE Corps Loan Repayment Program. You can get up to 60 percent of your student loans in two years of employment. If you work for a third year, you might qualify for another 25 percent being paid.
What are the requirements?
You must a registered nurse and work in a facility that is qualified as a Critical Shortage Facility. You need to work at least 32 hours a week at the facility.
How do you apply?
Applications are accepted once a year, and guidelines are updated annually. Check the program requirements and guidelines ahead of time and turn in your application on time.
8) Special Forgiveness Programs for Nurses by State
Alaska
The SHARP program recruits healthcare professionals to work in certain areas of shortgage. In return, they get loan assistance as long as they work at a site with an employer match.
Nurses can receive up to $27,000 per year in loan assistance under the Tier-2 program.
Arizona
If you work in a healthcare shortage area, you might be eligible for help under the Arizona Loan Repayment Program. Nurse practitioners can work full- or part-time at a qualified facility for at least two years. You can get up to $50,000 in repayment help for each year of service.
California
Registered nurses working in a Health Professional Shortage Area or Medically Underserved Area in California can receive up to $8,000 to help with student loans. You must work for two years. After that, you can reapply and get up to $11,000 in assistance.
Colorado
The Colorado Health Service Corps program offers full-time nurse practitioners the chance to receive up to $50,000 in repayment assistance for working in for three years in a qualifying organization. Half-time nurses can receive up to $25,000.
