Guide to Federal Student Loan Cancellation Options
Discover various federal student loan forgiveness options available for educators, public servants, and healthcare professionals. Learn how to qualify for programs like Teacher Loan Cancellation, Public Service Loan Forgiveness, Perkins Loan Forgiveness, and income-driven repayment plans to reduce or eliminate your student debt and ease financial stress.
Understanding Federal Student Loan Cancellation Opportunities
Managing student debt can be overwhelming for many graduates. Fortunately, there are several federal programs designed to reduce or eliminate student loan obligations based on your career and repayment choices. Four primary forgiveness options include:
Teacher Loan Cancellation
Teachers can have their loans forgiven or reduced after five years of service. Combining public service and teaching careers over 15 years can also lead to significant relief.
Eligible loans are limited to direct and Stafford types. Teachers dedicated to full-time work in low-income public schools with loan balances around $17,500 or less, taken after October 1, 1998, qualify more easily for forgiveness.
Public Service Loan Forgiveness
Federal loans can be canceled if you serve in government or non-profit roles for a minimum of 10 years. To qualify, full monthly payments must be made on time using an income-based repayment plan.
This program began in October 2007; only those with 120 consistent payments since then are eligible.
Perkins Loan Forgiveness
Up to 100% of Perkins loans can be forgiven after five years of employment in public service sectors such as education, law enforcement, healthcare, or firefighting.
Income-Driven Repayment Plans
By choosing plans like PAYE or Revised PAYE, borrowers may qualify for loan forgiveness based on income and repayment duration.
