6 Paths to Student Loan Forgiveness Still Open in 2026
Is student loan forgiveness dead in 2026?
The short answer is no — but the programs that offer it are few and far between. MoneyLion compiled the current student loan forgiveness programs so you can see if you qualify.
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1. Public Service Loan Forgiveness
Workers for non-profit organizations and federal, state, tribal or local governments can qualify for the PSLF program. Forgiveness requires that you work for a qualifying employer for ten years, during which time you make on-time loan payments.
However, it should be noted that forgiveness doesn’t happen automatically.
“You must certify your employment and keep records,” said debt attorney Leslie H. Tayne of Tayne Law Group. “I also recommend periodically checking in to review the status of your loans.”
Check to see if your employer qualifies for the PSLF program on StudentAid.gov.
2. Income-Driven Repayment Programs
Several of the legacy income-driven repayment (IDR) programs have been discontinued or are phasing out, including the SAVE plan, PAYE and ICR plans. The remaining legacy plan, Income-Based Repayment (IBR), caps your monthly payment at 10 to 15% of your discretionary income (depending on your loans’ disbursement dates).
Qualifying IBR borrowers can apply for loan forgiveness after 20 to 25 years, depending on their initial loan terms. Alternatively, the new Repayment Assistance Program (RAP) caps your payment at 1 to 10% of your adjusted gross income. This program applies for all loans taken out or consolidated after July 1, 2026. Borrowers under RAP can apply for forgiveness after 30 years.
Beware however — Uncle Sam now taxes IDR loan forgiveness as income. Even free lunches aren’t tax-free. See StudentAid.gov for more information about applying for forgiveness.
3. Teacher Loan Forgiveness
Teachers who work at qualifying low-income schools for five consecutive years can qualify for the Teacher Loan Forgiveness program. It forgives up to $17,500 on your Direct Loan or Federal Stafford Loans.
“The teachers program gets a lot less press, as it specifically targets teachers who meet rigid criteria,” noted Jack Wang, host of the Smart College Buyer podcast. “Borrowers targeting either the PSLF or teachers program should keep track and work with servicers to make corrections as needed, rather than finding out at the end of five or ten years that they didn't qualify.”
See the full requirements and eligibility at StudentAid.gov.
4. Total and Permanent Disability Discharge
Borrowers who become unable to work due to a permanent disability, and those who suffered a service-related disability in the military, may qualify for a Total and Permanent Disability (TPD) discharge of their student loans.
To see if you qualify and apply for a discharge, visit StudentAid.gov.
5. Borrower Defense to Repayment
Borrowers with Direct Loans may qualify for forgiveness if their school misled them or violated specific misconduct laws. Examples include false or misleading promises about getting a job after graduation, earning a certain salary or the ability to transfer credits to another school.
Read the full qualifications at StudentAid.gov.
6. Closed School Discharge
If your college or university closes its doors while you’re enrolled, you can qualify for student loan forgiveness. In fact, borrowers qualify even if they withdrew from the school less than 180 days before it closed. However, if you graduated from the school, you must still repay the loan.
To see if you qualify, view the full discharge requirements at StudentAid.gov.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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