Learn About Loan Forgiveness, Cancellation, and Discharge
Your obligation to repay your federal student loans remains until your debt is paid off, except in a few circumstances as described below.
Teacher Loan Forgiveness
- You may be eligible for forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans if:
- You teach full-time for five complete and consecutive academic years in a low-income school or educational service agency and meet other qualifications.
Public Service Loan Forgiveness (PSLF)
- You could be eligible for forgiveness on your remaining loan balance after you have made 120 qualifying monthly payments under a qualifying repayment plan while:
- you are employed full-time by a qualifying U.S. federal, state, local, or tribal government.
- you are employed full-time by a qualifying not-for-profit organization.
**TIP! Consider a program that may help you secure a career in a qualified organization for PSLF.
Closed School Discharge
You may be eligible for discharge of your federal student loan if you did not complete your program and your school:
- closed before you could complete your program,
- falsely certified your loan eligibility,
- did not have your authorized signature,
- failed to refund all or a portion of your federal student loans to the loan servicer, when it was required by law to do so,
- or if your federal student loan was falsely certified as a result of identity theft.
Total and Permanent Disability
You may qualify for a discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation if:
- you become totally and permanently disabled.