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- As of January 12, 2026, numerous federal student loan forgiveness programs are available to borrowers, following important changes and legal challenges in recent years.
- the Public Service Loan forgiveness program forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a qualifying employer.
- PSLF was established under the Collage Cost Reduction and Access Act of 2007.
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US Federal Student Loan Forgiveness Programs – 2026 update
Table of Contents
As of January 12, 2026, numerous federal student loan forgiveness programs are available to borrowers, following important changes and legal challenges in recent years. These programs offer pathways to loan discharge based on employment, income, and other factors. this article details current options and eligibility requirements.
Public Service Loan Forgiveness (PSLF)
the Public Service Loan forgiveness program forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a qualifying employer.
PSLF was established under the Collage Cost Reduction and Access Act of 2007. Initially, the program faced criticism for its strict eligibility requirements and low approval rates. However, the Biden-Harris management implemented a temporary expanded PSLF waiver, which significantly broadened eligibility by allowing past payments under other repayment plans to count towards the 120 required payments. While the waiver expired on October 31, 2022, the program continues to offer forgiveness to eligible borrowers.
Example: A teacher working full-time at a public school who has made 120 qualifying payments on their Direct Loans is eligible for PSLF. The department of Education details qualifying employment and payment requirements on its website.
Income-Driven Repayment (IDR) Forgiveness
Income-Driven Repayment (IDR) plans cap monthly payments based on a borrower’s income and family size, and forgive the remaining loan balance after a set number of years of qualifying payments.
There are several IDR plans, including Saving on a Valuable Education (SAVE), Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE). The SAVE plan,introduced in 2024,generally offers the lowest monthly payments and fastest path to forgiveness for many borrowers. The standard forgiveness timeframe under most IDR plans is 20 or 25 years, depending on the loan type and plan. The Biden-harris administration also announced an IDR Account Adjustment, which provides a one-time credit toward forgiveness for borrowers who previously had periods of forbearance or deferment that didn’t count toward IDR forgiveness.
evidence: As of December 2025, the Department of Education reported approving $42.7 billion in IDR forgiveness for over 615,000 borrowers through the SAVE plan and the IDR Account Adjustment. Data on IDR forgiveness is regularly updated on the Federal Student Aid website.
Teacher Loan Forgiveness
The Teacher Loan Forgiveness Program offers up to $17,500 in loan forgiveness to highly qualified teachers who teach full-time for five complete and consecutive academic years in a low-income school.
To qualify, teachers must teach in a designated low-income school, as resolute by the department of Education.The amount of forgiveness depends on the subject taught: $5,000 is available for teachers of mathematics, science, and special education, while $17,500 is available for teachers of other subjects. This program applies to Direct Subsidized and Unsubsidized Loans, as well as Subsidized and Unsubsidized Federal Stafford Loans.
example: A high school math teacher who teaches for five years at a Title I school is eligible for up to $5,000 in loan forgiveness through the Teacher Loan Forgiveness Program. Detailed eligibility requirements are available on the Federal Student Aid website.
Borrower Defense to Repayment
borrower Defense to Repayment allows borrowers to seek loan forgiveness if their school engaged in certain misconduct, such as making false or misleading statements about the educational program or employment prospects.
Borrowers must submit a claim to the Department of Education, providing evidence of the school’s misconduct. The Department investigates the claim and determines whether the borrower is eligible for forgiveness. The program has been subject to legal challenges and regulatory changes, but remains a potential avenue for relief for borrowers who were defrauded by their schools. The Biden-Harris administration has prioritized resolving Borrower Defense claims,leading to increased approvals and settlements.
Evidence: In June 2024, the Department of Education announced a $5.8 billion settlement with a group of borrowers who alleged they were defrauded by ITT Technical Institutes. Details of the settlement are available on the Federal Student Aid website.
Closed School Discharge
Closed School Discharge provides loan forgiveness to borrowers whose school closed while they were enrolled or shortly after they withdrew.
To be eligible,borrowers must have been enrolled at a school that closed,and they must meet certain requirements regarding their enrollment status and loan type. The Department of Education automatically discharges eligible loans, but borrowers may need to submit an submission in some cases. The