For millions of students, student loans are a necessary tool for pursuing higher education. Unfortunately, this financial aid can also lead to a significant burden after graduation. Student loan debt has reached historic highs in recent years, with graduates owing an average of over $37,000 in 2024.
The weight of this debt can delay major life milestones like buying a home, starting a family, or saving for retirement. Thankfully, student loan forgiveness programs exist to help borrowers reduce or even eliminate their student loan debt.
In 2024, several student loan forgiveness programs remain crucial for those seeking financial relief. These programs, tailored to specific professional fields, public service, and hardship circumstances, provide a lifeline to those who qualify.
Whether you’re a recent graduate or have been making payments for years, it’s essential to know what options are available to you. This blog will outline the top seven student loan forgiveness programs in 2024 and how they can help you reduce or eliminate your student loan debt.
-
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness (PSLF) is one of the most popular student loan forgiveness programs. It was established to encourage graduates to work in public service sectors by offering loan forgiveness after a specific period of time.
This program is available to individuals who work full-time for federal, state, local, or tribal government organizations or not-for-profit organizations.
How PSLF Works
Under PSLF, borrowers must make 120 qualifying monthly payments under an income-driven repayment (IDR) plan while working for a qualifying employer. After 10 years of service and on-time payments, the remaining balance of the student loan is forgiven.
It’s important to note that only Direct Loans qualify for PSLF. If you have other types of federal loans, such as Federal Family Education Loans (FFEL) or Perkins Loans, you’ll need to consolidate them into a Direct Loan to become eligible.
Benefits of PSLF
One of the key benefits of PSLF is that the forgiven amount is not considered taxable income, meaning you won’t owe taxes on the forgiven loan amount. This is a significant advantage compared to other loan forgiveness programs that may treat forgiven debt as taxable income.
PSLF in 2024: Recent Changes
In 2024, the PSLF program continues to be a top choice for borrowers, but it has also undergone several reforms to make it more accessible. For instance, the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) program allows borrowers who were previously denied PSLF due to being on the wrong repayment plan to receive forgiveness.
The Department of Education has also made efforts to streamline the application process, making it easier for borrowers to track their progress toward forgiveness.
-
Teacher Loan Forgiveness
The Teacher Loan Forgiveness program is designed to help teachers reduce their student loan debt in exchange for working in low-income schools. Teachers who commit to teaching in eligible schools for a certain number of years can qualify for up to $17,500 in loan forgiveness.
Eligibility Requirements
To qualify for Teacher Loan Forgiveness, you must:
– Teach full-time for five consecutive academic years in a low-income elementary or secondary school or educational service agency.
– Have Direct Loans or Stafford Loans. Parent PLUS loans do not qualify.
– Be considered a “highly qualified teacher,” meaning you meet state certification requirements and have a bachelor’s degree.
Benefits of Teacher Loan Forgiveness
The Teacher Loan Forgiveness program offers either $5,000 or $17,500 in forgiveness, depending on the subject area you teach. For example, secondary school math or science teachers, as well as special education teachers, are eligible for the higher amount. Unlike PSLF, this program does not require you to make 120 payments, so it’s a quicker way to receive forgiveness if you meet the eligibility criteria.
Teacher Loan Forgiveness in 2024
In 2024, the demand for teachers continues to grow, and the Teacher Loan Forgiveness program remains a valuable resource for those in education. Additionally, teachers who qualify for both Teacher Loan Forgiveness and PSLF can benefit from both programs. However, the five years of teaching required for Teacher Loan Forgiveness cannot overlap with the 10 years of service required for PSLF.
-
Income-Driven Repayment (IDR) Forgiveness
Income-Driven Repayment (IDR) plans are another way for borrowers to manage their student loan payments and eventually qualify for forgiveness. These plans base your monthly payments on a percentage of your discretionary income and extend the repayment period to 20 or 25 years, depending on the plan.
Types of IDR Plans
There are four main types of IDR plans:
Revised Pay As You Earn (REPAYE)
Pay As You Earn (PAYE)
Income-Based Repayment (IBR)
Income-Contingent Repayment (ICR)
After making payments for 20 or 25 years (depending on the plan), the remaining balance is forgiven
Benefits of IDR Forgiveness
IDR forgiveness can be a great option for borrowers with large amounts of debt relative to their income. While the repayment term is longer than other forgiveness programs, the lower monthly payments can provide financial relief. Additionally, IDR plans cap your payments at a percentage of your income, which can help make your student loan payments more manageable.
IDR Forgiveness in 2024: What’s New?
In 2024, the Biden administration introduced several reforms to the IDR system, including the introduction of the SAVE (Saving on a Valuable Education) plan. This plan is designed to be more affordable than previous IDR plans, reducing monthly payments for many borrowers and offering more generous forgiveness terms. Additionally, the Department of Education has streamlined the IDR enrollment process to make it easier for borrowers to sign up and manage their payments.
-
Federal Perkins Loan Cancellation
While the Perkins Loan program ended in 2017, borrowers who took out Perkins Loans before then may still be eligible for loan cancellation. The Federal Perkins Loan Cancellation program offers partial or full loan cancellation to borrowers who work in specific public service jobs, such as teaching, nursing, law enforcement, and firefighting.
Eligibility for Perkins Loan Cancellation
The cancellation amount is determined by the type of service and the length of time you work in that service. For example, teachers working in low-income schools or special education can qualify for up to 100% cancellation after five years of service. Similarly, nurses and law enforcement officers can also qualify for significant loan cancellation.
Benefits of Perkins Loan Cancellation
One of the significant advantages of Perkins Loan Cancellation is that it’s often more generous than other forgiveness programs. Borrowers can receive partial cancellation after just one year of service, with the cancellation amount increasing for each year of service.
Perkins Loan Cancellation in 2024
Although the Perkins Loan program is no longer issuing new loans, eligible borrowers who have Perkins Loans from prior years can still apply for cancellation in 2024. If you qualify for cancellation under this program, it can significantly reduce or eliminate your student loan debt.
-
State-Specific Loan Forgiveness Programs
Many states offer their own student loan forgiveness programs to encourage graduates to work in high-need areas or specific professions, such as teaching, healthcare, or law enforcement. These programs vary by state and profession, but they can provide significant relief to borrowers.
Examples of State-Specific Programs
California’s Assumption Program of Loans for Education (APLE): Provides loan forgiveness to teachers who work in high-need areas.
New York State Licensed Social Worker Loan Forgiveness Program: Offers loan forgiveness to social workers who work in underserved areas.
Texas Loan Repayment Program for Mental Health Professionals: Provides loan repayment assistance to mental health professionals working in rural or underserved areas.
Benefits of State-Specific Programs
These programs are an excellent option for borrowers who work in fields that are in high demand in their state. They often provide forgiveness or repayment assistance in exchange for a commitment to work in a particular area for a set period of time.
State-Specific Programs in 2024
In 2024, many states are expanding their loan forgiveness programs to address workforce shortages in areas like healthcare and education. As student loan debt continues to rise, these programs provide valuable support to borrowers who are willing to serve their communities.
-
Military Student Loan Forgiveness
The U.S. military offers several student loan forgiveness programs as an incentive for service members. These programs are available to active-duty members, veterans, and those who serve in the National Guard or Reserves.
Military Loan Forgiveness Programs
Army Student Loan Repayment Program (SLRP): Offers up to $65,000 in student loan repayment for eligible Army service members.
Navy Loan Repayment Program: Provides up to $65,000 in loan repayment for sailors who enlist for a specific number of years.
Public Service Loan Forgiveness (PSLF) for Military: Military members can also qualify for PSLF if they serve in a public service role while making qualifying payments.
Benefits of Military Student Loan Forgiveness
The military offers some of the most generous student loan forgiveness options, making it a great choice for those looking to serve their country while reducing their student loan debt. Additionally, the PSLF program is available to military personnel, providing them with even more opportunities for forgiveness.
Military Loan Forgiveness in 2024
In 2024, the military continues to offer strong student loan repayment incentives, making it a viable option for those considering enlistment. With increasing emphasis on attracting skilled professionals, these forgiveness programs are expected to grow and provide further benefits to service members.
-
Student Loan Forgiveness for Nurses
Nurses play a critical role in the healthcare system, and several student loan forgiveness programs are available to
help them manage their debt. These programs are offered by both federal and state governments, as well as private organizations.
Federal Nursing Loan Forgiveness Programs
NURSE Corps Loan Repayment Program: Offers up to 85% of loan repayment for nurses who work in underserved areas.
National Health Service Corps (NHSC) Loan Repayment Program: Provides up to $50,000 in loan repayment for nurses who commit to working in a Health Professional Shortage Area (HPSA).
Benefits of Nursing Loan Forgiveness Programs
Nursing loan forgiveness programs provide significant financial relief to nurses who work in underserved areas or high-need specialties. These programs help nurses focus on their careers without the burden of overwhelming student loan debt.
Nursing Loan Forgiveness in 2024
As the demand for healthcare professionals continues to grow in 2024, nursing loan forgiveness programs remain a critical tool for addressing workforce shortages. These programs offer a substantial financial incentive for nurses to work in underserved communities, making them an attractive option for those in the field.
Conclusion
Navigating student loan debt can be overwhelming, but understanding the various student loan forgiveness programs available in 2024 can make a significant difference in managing your debt. Whether you work in public service, healthcare, education, or the military, there are programs designed to help you reduce or eliminate your student loan debt.
Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven Repayment Forgiveness are some of the most widely known programs, but don’t overlook state-specific programs or opportunities in your profession, such as nursing or military service.
By exploring these options, you can find a path to financial freedom and focus on building your future without the weight of student loan debt holding you back.
