What Jobs Qualify for Loan Forgiveness?

Student loan forgiveness allows borrowers to have a portion or all of their federal student loan debt canceled under specific conditions. These programs assist individuals working in certain professions or serving in particular capacities, recognizing their contributions to public welfare. Various federal initiatives exist to alleviate the financial burden of student loans, often tied directly to the borrower’s employment. These programs incentivize careers that benefit the broader community, providing a path to debt relief. Eligibility depends significantly on the type of work performed and the nature of the employing organization.

Public Service Loan Forgiveness Job Eligibility

The Public Service Loan Forgiveness (PSLF) program offers loan cancellation for individuals working in public service roles. To qualify, a borrower must be employed by a specific type of organization. Eligible employers include federal, state, local, or tribal government organizations, encompassing nearly all public entities such as public schools, universities, and hospitals. This also extends to 501(c)(3) non-profit organizations, which are typically charitable, religious, educational, or scientific. Other non-profit organizations without 501(c)(3) status can qualify if they provide specific public services, such as public health or education, or services for individuals with disabilities. The type of work performed for a qualifying employer generally does not affect eligibility.

Employment must be full-time, defined as working at least 30 hours per week for a qualifying employer. This can be met by working 30 hours per week for a single employer or by combining part-time employment with multiple qualifying employers. Employment must also occur during the period when the borrower makes qualifying payments.

Only Direct Loans are eligible for PSLF, including Direct Subsidized, Unsubsidized, PLUS, and Consolidation Loans. Other federal loan types, such as Federal Family Education Loan (FFEL) Program loans or Federal Perkins Loans, are not directly eligible. However, borrowers with FFEL or Perkins Loans can make them eligible by consolidating them into a Direct Consolidation Loan. Only payments made on the Direct Consolidation Loan after consolidation count toward the required 120 qualifying payments.

Borrowers must make 120 qualifying monthly payments while employed full-time by a qualifying employer. These payments must be made under an income-driven repayment (IDR) plan, which calculates monthly payments based on a borrower’s income and family size. Examples of IDR plans include the Saving on a Valuable Education (SAVE) Plan, Pay As You Earn (PAYE) Repayment Plan, Income-Based Repayment (IBR) Plan, and Income-Contingent Repayment (ICR) Plan.

To track progress toward PSLF, borrowers should submit the Public Service Loan Forgiveness (PSLF) Employment Certification Form annually or whenever they change employers. This form verifies employment with a qualifying organization and ensures payments are correctly counted toward the 120 required payments. Regular submission of this form helps confirm the borrower’s employment meets program criteria and provides an official record of qualifying service.

Teacher Loan Forgiveness Job Eligibility

The Teacher Loan Forgiveness (TLF) program provides student loan forgiveness for educators. To qualify, an individual must be a “highly qualified teacher,” generally meaning holding a bachelor’s degree, full state certification as a teacher, and demonstrated competency in the subject areas taught.

Teachers must perform their service in a low-income school or educational service agency. These institutions are identified annually by the Department of Education through the Teacher Cancellation Low Income (TCLI) Directory. A school is typically listed if more than 30% of its students are eligible for services under Title I of the Elementary and Secondary Education Act.

Eligible teachers must teach full-time for five complete and consecutive academic years. This service must be performed in a qualifying low-income school or educational service agency. The five years of service do not have to be with the same school, but they must be consecutive.

Both Direct Subsidized and Unsubsidized Loans, as well as Federal Family Education Loan (FFEL) Program Subsidized and Unsubsidized Loans, are eligible for TLF. Unlike PSLF, FFEL loans do not need to be consolidated into Direct Loans to qualify. However, any PLUS loans or Direct Consolidation Loans that repaid a PLUS loan are not eligible.

The amount of loan forgiveness available varies based on the subject taught. Highly qualified math or science teachers at the secondary level, and highly qualified special education teachers at either the elementary or secondary level, may receive up to $17,500 in loan forgiveness. Other highly qualified teachers can receive up to $5,000 in loan forgiveness.

Healthcare Professional Forgiveness Job Eligibility

Several federal programs offer loan forgiveness for healthcare professionals, addressing workforce shortages and improving access to care in underserved areas. The Nurse Corps Loan Repayment Program provides substantial loan repayment for registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty members. To qualify, these professionals must work full-time for at least two years in an eligible critical shortage facility located in a Health Professional Shortage Area (HPSA) or serve as nurse faculty at an accredited school of nursing.

The National Health Service Corps (NHSC) Loan Repayment Program targets primary care medical, dental, and mental health providers. Eligible professionals include physicians, dentists, nurse practitioners, physician assistants, and behavioral health providers. Participants must commit to serving for a minimum of two years in a certified Health Professional Shortage Area (HPSA). These areas are designated by the Health Resources and Services Administration (HRSA) as having a shortage of primary care, dental, or mental health providers.

While no longer disbursed, Federal Perkins Loans offered cancellation benefits for certain healthcare professions. Nurses and medical technicians who held Perkins Loans could qualify for partial or full loan cancellation based on their service. The percentage of the loan canceled increased with each year of qualifying service.

These programs require a service commitment ranging from two to four years, with the possibility of extending the commitment for additional loan repayment. The specific amount of loan repayment can vary significantly, often covering a substantial portion of outstanding educational debt, sometimes up to $50,000 or more depending on the program and length of service.

Other Federal Loan Forgiveness Job Eligibility

Beyond the major programs, other federal initiatives provide loan forgiveness or repayment assistance based on specific types of employment or service. Various branches of the U.S. Armed Forces offer student loan repayment programs as an enlistment incentive. These programs vary by branch and military occupation, often requiring a specific service commitment in exchange for a defined amount of loan repayment.

AmeriCorps members can earn a Segal AmeriCorps Education Award upon successful completion of their term of national service. This award can be used to pay off qualified student loans, including Direct Loans and FFEL Program loans. The amount of the award is equivalent to the maximum Pell Grant amount for the award year in which the term of service is approved.

Certain volunteer service programs, such as the Peace Corps, can offer benefits related to federal student loans. While not direct forgiveness, Peace Corps volunteers may be eligible for deferment or partial cancellation of Federal Perkins Loans. The specific benefits depend on the type of loan and the duration of service.

Highly specialized federal programs also exist for certain professions, often tied to specific federal agencies or research initiatives. For example, some federal agencies may offer loan repayment programs for attorneys, researchers, or other specialists who commit to working in specific fields or locations. These programs are designed to recruit and retain talent in areas of high federal need, requiring specific job duties and often a service commitment to the agency.