Student Loan Forgiveness Programs
Student loan forgiveness programs are designed to reduce or eliminate the amount of student loan debt borrowers owe. These programs are offered by the federal government, state governments, or certain private organizations and have specific eligibility requirements.
For detailed information, visit the Federal Student Aid website.
Key Types Programs
Public Service Loan Forgiveness (PSLF)
- Forgives the remaining balance on Direct Loans after the borrower has made 120 qualifying monthly payments under a qualifying repayment plan.
- Requires full-time employment with a qualifying employer, such as a government organization or non-profit.
- Offers forgiveness of up to $17,500 on Direct Subsidized and Unsubsidized Loans and Federal Stafford Loans.
- Requires full-time teaching for five consecutive years in a low-income school or educational service agency.
Income-Driven Repayment (IDR) Forgiveness
- Under plans such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE), any remaining loan balance is forgiven after 20 or 25 years of qualifying payments, depending on the specific plan.
Perkins Loan Cancellation and Discharge
- Borrowers with Perkins Loans who work in specific public service jobs (e.g., teaching, law enforcement, nursing) may have up to 100% of their loan canceled over five years of qualifying service.
Fiducius Partnership
Montgomery County ESC has partnered with Fiducius to assist employees in navigating the changing landscape of student loan forgiveness.
Please note there is a fee associated with Fiducius’ services.