Student loan debt can seriously affect borrowers’ finances. Paying for years on a debt that seems to increase instead of decrease can be as damaging to your bank account as it is to your mental health. However, there is still hope, thanks to the relief programs that the federal government has implemented.
Student loan forgiveness programsaim to erase part or even all of your higher education debts. Although there are some well-known ones, such as income-driven repayment (IDR) plans, there are other lesser-known but equally useful ones to help you manage your debt.
As of 2024, the federal government has 14 forgiveness and refinancing programs available. Some are for any borrower, while others target a specific sector.
Among those that any borrower can access are IDRs. Through these programs, borrowers can cap their monthly payments as a percentage of their income. This system is helpful if you change jobs or if your income decreases for any reason.
Sector-Specific programs
Aside from programs for general borrowers, there are other aid systems targeted at workers within a specific sector. For example, Public Service Loan Forgiveness (PSLF) is for government workers and some qualified nonprofits.
Teacher Loan Forgiveness is targeted at education workers over five years of seniority. Nurses, meanwhile, can access programs such as PSLF, the NURSE Corps Loan Repayment Loan, or Perkins Loan Cancellation.
The Army, Navy, Air Force, and National Guard offer their own student debt forgiveness programs. Veterans and disabled soldiers, for their part, have access to specific programs offered by the Department of Veterans Affairs (VA).
Other assistance programs
There are special cases that can also receive government aid. Among them is the Closed School Discharge, aimed at students whose schools closed while enrolled or within 180 days after they finished their studies but who did not receive their degree.
A similar case is the Borrower Defense to Repayment program, aimed at those defrauded by their schools. If you meet the requirements, your debt could even be canceled in its entirety.
It should be noted that these programs are only available to recipients of federal loans. If this is your case, do not wait any longer, contact your loan servicer, ask what your options are, and choose the most appropriate for your situation.