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US Federal Student Loan Forgiveness Programs: A 2026 Update
Table of Contents
As of January 22, 2026, several federal student loan forgiveness programs are available to borrowers, following meaningful legal challenges adn program revisions. 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)
The Public Service Loan Forgiveness program offers loan forgiveness to borrowers employed full-time by a qualifying U.S. federal, state, local, or tribal government or non-profit organization. PSLF requires 120 qualifying monthly payments made under a qualifying repayment plan.
The program underwent a temporary expansion under the Biden administration, addressing past issues with payment counting and eligibility.The Limited PSLF waiver,which ended October 31,2022,allowed borrowers to receive credit for past payments that previously didn’t qualify. While the waiver has expired, the Department of Education continues to refine PSLF rules and improve administration. Recent changes include streamlined application processes and increased outreach to eligible borrowers.
Example: As of December 2025,the Department of Education reported having approved $52.3 billion in PSLF for over 717,000 borrowers. PSLF Data provides detailed statistics on program approvals.
Income-Driven Repayment (IDR) Forgiveness
Income-Driven Repayment (IDR) plans cap monthly payments based on a borrower’s income and family size. After a set number of years of qualifying payments (typically 20 or 25 years, depending on the plan), the remaining loan balance is forgiven. Currently available IDR plans include SAVE (Saving on a Valuable Education),IBR (Income-Based Repayment),ICR (Income-Contingent Repayment),and PAYE (Pay As You Earn).
the Biden administration introduced the SAVE plan in 2023, which offers the lowest monthly payments of any IDR plan and includes provisions to prevent balances from growing due to unpaid interest.The SAVE plan also shortens the timeline for forgiveness for borrowers with original loan balances under $12,000, perhaps leading to forgiveness in as little as 10 years. The Department of Education estimates that the SAVE plan will benefit millions of borrowers.
Evidence: The Education Department announced in November 2025 that over 7.7 million borrowers were enrolled in the SAVE plan, with average monthly payments reduced by over $400. Department of Education Press Release
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. The amount forgiven varies depending on the subject taught, with teachers in high-need fields (mathematics, science, and special education) eligible for the maximum amount.
Eligibility requirements are strict, and the program has faced criticism for its low approval rates. The Department of Education has implemented measures to improve the application process and increase awareness of the program. Borrowers must submit a Teacher Loan Forgiveness Application after completing five years of qualifying service.
Example: In fiscal year 2025, the Department of Education approved $88 million in Teacher Loan forgiveness, benefiting approximately 5,000 teachers. Teacher Loan forgiveness Data
Borrower Defence 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. This program is particularly relevant for borrowers who attended institutions that closed unexpectedly or were found to have engaged in fraudulent practices.
The program has been subject to legal challenges and regulatory changes.the Department of education has established a more streamlined process for borrowers to apply for Borrower Defense, and is actively reviewing and processing claims. The department is also working to prevent future instances of school misconduct.
Evidence: As of January 2026, the Department of Education has approved approximately $16 billion in Borrower Defense to Repayment claims for over 260,000 borrowers. Borrower Defense to Repayment data
Closed School discharge
Closed School Discharge offers loan forgiveness to borrowers whose school closed while they were enrolled or shortly after they withdrew.To be eligible, borrowers must meet certain requirements, including demonstrating that they were unable to complete their program due to the school’s closure.
The department of Education automatically discharges loans for borrowers who