Forgiveness Programs Comparison
Federal student loan forgiveness programs in 2025
| Program | Who Qualifies | Amount Forgiven | Timeline | Taxable? |
|---|---|---|---|---|
| PSLF | Government/nonprofit full-time, qualifying IDR, Direct Loans | All remaining balance | 10 years (120 payments) | No — tax-free |
| IDR Forgiveness (SAVE/IBR) | Federal loan borrowers on IDR plans | Remaining balance | 20–25 years | Potentially yes (post-2025) |
| Teacher Loan Forgiveness | Low-income school teachers, 5 years | Up to $17,500 | 5 years teaching | Yes — taxable |
| Borrower Defense | Institutional fraud or closure victims | Varies (full to partial) | Case-by-case | Usually not |
| Closed School Discharge | School closed while enrolled or shortly after | Full discharge | On application | No |
| Total and Permanent Disability | SSA-certified disabled borrowers | Full discharge | On application | No (waived) |
Teacher Loan Forgiveness: The 5-Year Program
Teachers who work full-time for 5 consecutive years at a low-income school can receive up to $17,500 in loan forgiveness ($5,000 for most subjects, $17,500 for math, science, and special education). This is separate from PSLF — and you can pursue both (Teacher LF during years 1–5, then continue toward PSLF for total 10-year forgiveness).
Teachers can claim Teacher Loan Forgiveness after 5 years (up to $17,500), then continue making qualifying payments toward PSLF for the remaining 5 years. After year 10 total, any remaining balance (after TLF) is forgiven tax-free under PSLF. This stacking strategy can maximize total forgiveness for teachers with significant debt.
Income-Driven Forgiveness: The 20-25 Year Path
- SAVE plan: forgiveness at 20 years for undergraduate-only borrowers; 25 years for graduate loan holders
- IBR new plan: forgiveness at 20 years
- IBR original plan: forgiveness at 25 years
- Key risk: forgiven balance may be taxable as ordinary income (the 'tax bomb') after 2025
- Plan for tax bomb: save in a separate account growing at estimated forgiveness tax liability
Model Your Forgiveness Timeline
Enter your balance, income, and employment — see every forgiveness path available and what each delivers.