Federal student loans offer benefits –
One benefit is the ability to qualify for loan forgiveness under special circumstances, the federal government may forgive part, or all, of your federal student loans. That means you’re no longer obligated to make your loan payments. Another benefit is there may be some situations where you may qualify to have your loans canceled or discharged.
These are some of the most common types of loan forgiveness and discharge.
- Teacher Loan Forgiveness
- Public Service Loan Forgiveness
- Temporary Expanded Public Service Loan Forgiveness
- Closed School Discharge
- Total and Permanent Disability Discharge
Note this is not a complete list, and you need to meet requirements and provide specific information to qualify.
Teacher Loan Forgiveness
If you teach full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency, you may be eligible for forgiveness of up to $17,500 on your Direct Loan or FFEL program loans. See StudentAid.gov/teach-forgive for more information and a form you can fill out when you have completed your teaching service.
Public Service Loan Forgiveness (PSLF)
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program.
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
Servicing for this program is managing by another federal student loan servicer. If you enroll in Public Service Loan Forgiveness, your eligible loans will transfer from Great Lakes to that servicer. Also note, you may not receive a benefit for the same qualifying payments or period of service for Teacher Loan Forgiveness and Public Service Loan Forgiveness.
You’ve Got Options If PSLF Denise
If they denied your application, you may receive loan forgiveness under the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) opportunity.
As part of this opportunity, the Department of Education reconsiders your eligibility using an expanded list of qualifying repayment plans.
This TEPSLF opportunity is temporary, has limited funding, and will be provided on a first-come, first-served basis. They use once all the funds, the TEPSLF opportunity will end.
Visit StudentAid.gov for detailed information on how to be reconsidered for loan forgiveness.
Closed School Discharge
If your school closes while you’re enrolled or soon after you withdraw, you may be eligible for a discharge of your federal student loan. For example, ITT and Corinthian Colleges recently closed and qualified students were eligible for loan discharge. Learn more about the process, eligibility requirements.
Borrower Defense to Repayment
If you believe that the school you attended misled you or engaged in misconduct in violation of certain laws, the federal student loans you obtained to attend that school may be eligible for forgiveness, called Borrower Defense to Repayment. Learn more about the process, eligibility requirements, and how you can apply.
Total and Permanent Disability Discharge
Learn more about the Total and Permanent Disability Discharge process, eligibility requirements, and how to apply.
Not Eligible for Total and Permanent Disability?
If you believe you qualify for one of the programs other than the Total and Permanent Disability Discharge, complete and submit loan forgiveness, cancellation, or discharge application form.
All forms are in Portable Document Format (PDF). To view PDF files, you must first download the free Acrobat Reader software. Detailed instructions for downloading and installing the Acrobat Reader