Is Student Loan Debt Forgiveness Real

Many students live in the illusion that they will get student loan forgiveness in the end after making 12 to 15 payments of the loan amount but it's just a myth because some doesn't even consider student loan forgiveness and that to Private lenders.

Updated by Annany Sah on 22nd July 2020

Many students live in the illusion that they will get student loan forgiveness in the end after making 12 to 15 payments of the loan amount but it's just a myth because some don't even consider student loan forgiveness and that to Private lenders. Private lenders don't even consider forgiveness program. Many students have this fantasy that their loan amount will be concluded after they make their last payments that their problems are solved but it’s not true because it happens that the lender might charge some late fee on anyone the previous transactions. 

It should be noted that are a number of jobs available to help get your loans forgiven. Having an in-depth understanding of the various student loan forgiveness jobs out there is crucial to see if your job can get your loans forgiven.

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What Is Student Loan Forgiveness?

Student loan forgiveness releases you from the obligation to repay part or all of your federal loan debt. The student loan forgiveness can be availed from various student loan forgiveness programs. The prospect of seeing that debt evaporate may seem like a dream come true. In reality, though, not that many people end up being eligible. Requirements vary depending on the type of loan, but most offer forgiveness only for those employed in certain public service occupations. There are also repayment plans that include forgiveness of some debt.

How To Get Your Student Loans Forgiven

There are three ways to have student loans forgiven and none of them are easily attainable. The first is based on the type of career you choose. The second is based on how many years you make on-time payments while enrolled in a qualifying repayment plan. The last one requires a set of extraordinary circumstances that rarely come into play, but nonetheless could result in loan forgiveness. The first two are available for federal student loans only and the last one is achievable for federal or private student loans.

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Public Service Loan Forgiveness Program (PSLF)

Public Service Loan Forgiveness was created by the College Cost Reduction and Access Act of 2007 to lessen the burden of student loans for highly-qualified graduates and encourage them to pursue careers in the public service sector.

This forgiveness option is available for Direct Federal Student Loans, Direct Plus loans and Direct Consolidation loans. Private student loans are not eligible for Public Service Loan Forgiveness. To receive loan forgiveness under this program, you must be a full-time employee in a public service job and make 10 years of on-time monthly payments after consolidating your federal loans in a qualified repayment program.

Public Service Jobs Qualifying for Public Service Loan Forgiveness:

  • Any job in a government organization at the federal, state, local or tribal level

  • Not-for-profit organizations that are designated tax-exempt under Section 501

  • Other not-for-profit organizations that are not tax-exempt but provide a qualifying public service

  • Full-time AmeriCorps and Peace Corps volunteers

Repayment Plans Qualifying for Public Service Loan Forgiveness

  • Income-Based Repayment Plan

  • Income-Contingent Repayment Plan

  • Pay As You Earn Repayment Plan

  • Revised Pay As You Earn Repayment Plan

Teacher Loan Forgiveness Program

The Teacher Loan Forgiveness program was created in 1998 to encourage teachers to take jobs at elementary schools, secondary schools and educational service agencies that serve low-income families. The U.S.Department of Education publishes the list of low-income elementary schools and secondary schools each year.

Loan Forgiveness for Nurses

Registered nurses, nurse practitioners and members of nursing faculty, who work in high-need population areas or areas where there is a critical shortage could qualify to have up to 85% of their loans forgiven under the NURSE Corps Loan Repayment Program.

Qualified candidates can have 60% of their student loans forgiven for working two years in an underserved area. Another 25% could be forgiven for working three years. Some states also offer loan repayment assistance.

Loan Forgiveness for Doctors

The healthcare professions, especially physicians, dentists, pharmacists and mental healthcare workers, have several options, both national and local, to receive loan forgiveness.

The requirements and the amount forgiven vary dramatically, depending upon which program you enter. For example, the Navy Financial Assistance Program offers up to $275,000 in loan forgiveness in return for an eight-year commitment for active and reserve duty. 

Loan Forgiveness for Lawyers

Like most professions, there is a financial incentive for lawyers to spend a few years practicing in public service or government offices in order to have some portion of their law school loan forgiven. For example, the Department of Justice provides up to $60,000 in loan forgiveness for lawyers who work there for at least three years. The Air Force Judge Advocate program offers up to $65,000 in loan forgiveness.

Loan Forgiveness for Military

Each branch of the military has programs that help qualified members pay off their student loans, but the loan amounts forgiven and the requirements that must be met vary dramatically.

The best to find out all that is involved in military loan forgiveness is to visit the Complete Guide to Military Student Loan Forgiveness and Repayment and find the program that best suits your situation and branch of the military.

What are Perkins loans?

Perkins loans are subsidized loans for undergraduate and graduate borrowers with extreme financial need. The loan program was eliminated Sept. 30, 2017 after renewal efforts failed in Congress. However, you can still pursue forgiveness for existing Perkins loans if you qualify.

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Who qualifies for Perkins loan forgiveness?

  • Attorney employed in a federal public or community defender organization

  • Child or family services worker providing services to high-risk children and their families from low-income communities

  • Educator in a prekindergarten or child care program licensed by the state

  • Firefighter

  • Faculty member at a tribal college or university

Perkins Loan Cancellation Through Circumstances

You’re eligible for immediate and total discharge of 100% of your Perkins loan amount in the cases of:

  • Bankruptcy, if the bankruptcy court rules repayment would cause undue hardship

  • Death

  • School closure, if your school closed before you could complete your degree

  • Total and permanent disability

Income driven Repayment Plans for 20 to 250 years on time payment

Generally, you will make on-time payments for 20 or 25 years, depending on the repayment plan. The remaining loan balance is forgiven after that period of time. Be aware the amount forgiven is considered taxable income.

The Pay As You Earn Repayment Plan qualifies you for loan forgiveness after 20 years of on-time payments. This repayment plan will generally offer you the lowest monthly payment. To enroll in this repayment plan, you must demonstrate a financial hardship. You may remain in the program, however, after the hardship has resolved.

The Revised Pay As You Earn repayment plan is similar to the PAYE plan, only you don’t need to demonstrate financial hardship to qualify for the program.

The Income-Contingent, or Income-Based Repayment Plans qualify you for loan forgiveness after 25 years of on-time payments.


The reality is that not everyone gets loan forgiveness because it's never fixed that the lender will provide you with a forgiveness program to cancel your remaining amount of the loan amount. Some of the federal lenders do forgive the loan amount after 20 to 25 years of timely payment by the borrower but the private lenders doesn’t even consider forgiveness of loan and people often do take private loans because they are easily available and contain less paperworks so it's just a myth that you will get student loan forgiveness every time.

It is always to be well aware of all your student loan repayment options so,that you can take control of your repayment phase.