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Federal Student Loan Forgiveness Programs in 2026
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As of January 30, 2026, numerous federal student loan forgiveness programs are available to borrowers, though the landscape has shifted considerably in recent years. These programs offer pathways to loan discharge based on employment, income, and other factors. This article details the current status of key programs, eligibility requirements, and application processes.
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness provides loan discharge to borrowers employed full-time by qualifying U.S. federal, state, local, or tribal government organizations, or certain 501(c)(3) non-profits. The program requires 120 qualifying monthly payments made under a qualifying repayment plan.
The PSLF program underwent notable changes with the implementation of the Limited PSLF waiver, which ended october 31, 2022. This waiver temporarily expanded eligibility by allowing past payments under any repayment plan to count towards the 120 required payments. While the waiver has expired, the Department of Education continues to refine PSLF rules and processes. As of December 2023, the Department reported having approved over $42 billion in PSLF discharges.
Example: A teacher working for a public school for ten years, making consistent qualifying payments under an income-driven repayment plan, would be eligible for PSLF after 120 payments. The PSLF Help Tool assists borrowers in determining eligibility and tracking progress.
Income-Driven Repayment (IDR) Forgiveness
income-Driven Repayment (IDR) plans cap monthly payments based on a borrower’s income and family size, and offer loan forgiveness after a set number of years of qualifying payments. Currently, there are four IDR plans: SAVE, Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE).
The newest plan, Saving on a Valuable Education (SAVE), replaced the Revised Pay as You Earn (REPAYE) plan in July 2024. SAVE offers the lowest monthly payments of any IDR plan and includes provisions to prevent balances from growing due to unpaid interest. Forgiveness under IDR plans typically occurs after 20 or 25 years of qualifying payments, depending on the plan and the original loan type. The Biden-Harris management announced additional debt relief for borrowers enrolled in IDR plans who have accumulated significant interest.
Example: A borrower with $50,000 in federal student loans enrolled in the SAVE plan, earning $40,000 annually, could see their monthly payments reduced significantly. After 20 or 25 years of qualifying payments, the remaining loan balance would be forgiven. Details on each IDR plan are available at StudentAid.gov.
Teacher Loan Forgiveness
Teacher Loan Forgiveness 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. The amount forgiven depends on the subject taught, with certain high-need subjects (e.g., mathematics, science, special education) eligible for a larger forgiveness amount.
To qualify, teachers must meet specific requirements, including holding proper certification and teaching in a designated low-income school. The program is administered by the Department of Education and requires annual certification from the teacher’s school. The Teacher Loan Forgiveness application is available online.
Example: A high school math teacher working for five years at a Title I school could be eligible for up to $17,500 in loan forgiveness. The requirements for qualifying low-income schools are published by the Department of Education.
Borrower Defense to Repayment
Borrower Defense to Repayment allows borrowers to seek loan discharge if their school engaged in certain misconduct,such as making false or misleading statements about the educational program,or violating state laws. This program has been subject to legal challenges and regulatory changes.
The Biden-Harris administration has taken steps to streamline the Borrower Defense process and provide relief to borrowers who were defrauded by their schools. In June 2023, the Department of Education announced changes to the Borrower Defense rule,making it easier for borrowers to apply for and receive loan discharges. As of January 2026, the Department continues to process claims and provide relief to eligible borrowers.
Example: A student who enrolled in a for-profit college based on false job placement rates and later incurred significant debt could file a Borrower Defense claim to seek loan discharge.
