Loan Forgiveness

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Loan forgiveness encourages students to pursue degrees and employment in specific fields. These programs repay part or all of your educational loan debt if you fulfill certain work-related requirements.

Available Programs

You may be eligible for loan forgiveness if you have a degree and work in one of the fields below:

Federal Teacher Loan Forgiveness Program

The purpose of the Federal Teacher Loan Forgiveness Program is to encourage individuals to enter and continue in the teaching profession. You may qualify if you teach full-time at a low-income school and meet other qualifications.

Am I eligible?

To view full details of the Teacher Loan Forgiveness Program, including the eligibility requirements, visit the Federal Student Aid website.

How do I apply?

It's easy to apply. Go to aesSuccess.org and follow the instructions.

Agriculture Education Loan Forgiveness Program

The Agriculture Education Loan Forgiveness Program helps eligible graduates repay student loans when they return to Pennsylvania to work in a qualifying agriculture field. PHEAA will forgive up to $2,000 per year on outstanding American Education Services (AES)-administered, federally insured student loans for each year of satisfactory employment.

Am I eligible?

To be considered for this program, you must:

  • Hold a degree in veterinary medicine or agriculture from an accredited college or university

    OR

    Have a current teaching certification in agriculture from a postsecondary institution in Pennsylvania

  • Be a resident of Pennsylvania
  • Have a current outstanding balance on AES-administered, federally insured loans as approved by PHEAA (does not include commercial loans or personal loans from relatives or friends)
  • Meet additional eligibility requirements specific to the qualifying agriculture field of employment

How much can I expect to receive?

Funding for this program can vary from year to year.

How do I apply?

We accept applications from July 1 to November 15 each year (as long as funding is available).

 

A note on the tax status on loan forgiveness benefits
PHEAA must send to the IRS and to the student borrower a 1099-C form reporting any forgiveness of indebtedness that is $600 or more. PHEAA, however, cannot advise any borrower whether to include 1099-C information in his or her taxable income for state or federal tax purposes. Borrowers should consult a tax advisor to determine the state and federal tax consequences of PHEAA loan forgiveness.

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