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:
  1. 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:
  1. you are employed full-time by a qualifying U.S. federal, state, local, or tribal government.
  2. 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.