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 work in one of the fields below:

Public Service Loan Forgiveness Program (Direct Loan Borrowers)

The purpose of the Public Service Loan Forgiveness Program is to encourage individuals to enter and continue working in public service jobs. You may qualify if you have a Direct Loan, work full-time in a public service position and meet other eligibility requirements.

Am I eligible?

To view full details of the Public Service Loan Forgiveness Program, including the eligibility requirements, visit MyFedLoan.org.

How do I apply?

Since the Public Service Loan Forgiveness Program requires 120 separate on-time monthly qualifying payments and was just established in 2007, no borrower will be eligible for forgiveness until 2017. Applications will be available closer to that time.

However, it is recommended that you submit employment certification on an annual basis for any months that you were employed with a public service organization and believe you have met the eligibility requirements. Follow these application steps.

What can I do as a recognized public service organization?

If you are recognized as a public service organization and have employees who are paying back their student loans, they may be able to apply for Public Service Loan Forgiveness as a benefit for working at your organization. Qualification details and an Employer Certification Form are provided.

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.

 

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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Contact Us

For PSLF

By phone

Hours of Operations

Monday to Friday
8:00 AM to 11:00 PM (ET)

For Federal Teacher Loan Forgiveness

By phone

Hours of Operations

Monday to Friday
8:00 AM to 5:00 PM (ET)