How to get student loan forgiveness

If you are saddled with student loan debt, student loan forgiveness offers a promising way out. It can wipe away some — or even all — of a borrower's balance.

However, these programs "require several years of service and/or on-time payments," with borrowers often needing to meet a number of very specific criteria, like working in a certain type of field for a particular type of employer, said Money. Another drawback of loan forgiveness is that "most forgiveness options are only available to borrowers with federal student loans" — private student loan forgiveness is "very uncommon," said NerdWallet.

If your situation does happen to thread the needle to make you eligible for one of the student loan forgiveness options out there, it is a path well worth exploring.

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Public Service Loan Forgiveness (PSLF)

PSLF is a federal loan forgiveness program for "workers who choose careers with government agencies or non-profit organizations rather than for-profit companies," said Money. It is only an option for federal student loans.

To qualify for PSLF, you have to make "120 qualifying monthly payments under a qualifying repayment plan while working full time for a qualifying employer," after which point your remaining loan balance is forgiven, said Bankrate.

Income-driven repayment forgiveness

Another path for borrowers with federal student loans to access forgiveness is by enrolling in one of the federal government's "several income-driven repayment (IDR) plans, which allow you to cap your loan payments at a percentage of your monthly income," said NerdWallet. Once enrolled, "your remaining loan balance may be eligible for forgiveness in 20 or 25 years, depending on the plan and the type of student loans you have."

Specialized loan forgiveness programs

There are also a number of specialized loan forgiveness programs out there, available to borrowers in certain fields and who work in specific locations. For instance, through the Teacher Loan Forgiveness Program, "teachers may be eligible for forgiveness of up to either $5,000 or $17,500 on their federal direct and FFEL Program loans after five consecutive years of service," said Investopedia.

Health care providers, including both doctors and nurses, also have a number of potential paths toward forgiveness, particularly if they are willing to work in areas where there are not enough clinicians. With the National Health Service Corps (NHSC) loan repayment program, for example, "licensed primary care clinicians" can "receive up to $50,000 in loan repayment assistance" if they make "a two-year service commitment to work in a qualifying facility in a designated shortage area," said Money.

State and local loan forgiveness programs

It is also worth checking your state or local community for forgiveness opportunities, as "many states offer their own loan forgiveness programs to attract workers to specific high-need professions, such as health care, teaching and public service," said Bankrate. One example: In New Jersey, eligible professionals that "work in science, technology, engineering or mathematics (STEM) can qualify for up to $2,000 per year in student loan repayment assistance, and participants can receive the award for up to four years," said Money.