If you have federal student loans, multiple repayment plans and forgiveness programs can make your payments more manageable — or even eliminate your balance entirely under the right circumstances.
Income-Driven Repayment Plans
If your federal student loan payments feel unaffordable, income-driven repayment (IDR) plans cap your monthly payment based on your income and family size. After 20 to 25 years of qualifying payments, any remaining balance is forgiven.
Available IDR Plans
- SAVE Plan: Newest plan — payments based on 5-10% of discretionary income, forgiveness after 20-25 years
- Income-Based Repayment (IBR): Payments at 10-15% of discretionary income
- Pay As You Earn (PAYE): Payments at 10% of discretionary income, forgiveness after 20 years
- Income-Contingent Repayment (ICR): Payments at 20% of discretionary income or fixed 12-year payment, whichever is less
$0 monthly payments are possible. Under income-driven plans, if your income is low enough, your required monthly payment can be $0 — and those $0 payments still count toward forgiveness. You must recertify your income annually to stay on the plan.
Public Service Loan Forgiveness (PSLF)
If you work full-time for a qualifying employer — including government agencies, nonprofits, and certain other public service organizations — the PSLF program forgives your remaining loan balance after just 120 qualifying payments (10 years). The forgiven amount is tax-free.
- Must be on an income-driven repayment plan
- Must work full-time for a qualifying employer
- Must make 120 qualifying monthly payments (not necessarily consecutive)
- Submit the PSLF Employment Certification Form annually to track progress
Teacher Loan Forgiveness
Teachers who work in low-income schools for five consecutive years may qualify for up to $17,500 in loan forgiveness on Direct Subsidized and Unsubsidized Loans. STEM and special education teachers typically qualify for the higher amount.
How to Apply
Step 1: Log in to studentaid.gov to view your loans and current repayment plan.
Step 2: Use the Loan Simulator tool to compare repayment plans and estimate your monthly payment under each option.
Step 3: Apply for an income-driven plan through studentaid.gov — the application takes about 10 minutes.
Step 4: If pursuing PSLF, submit the Employment Certification Form and verify your qualifying payments.
Common Mistakes to Avoid
Not recertifying income annually. If you miss your annual recertification, your payment reverts to the standard amount — which could be significantly higher.
Assuming private loans qualify. Income-driven plans and PSLF only apply to federal student loans. Private loans have separate terms set by the lender.
Not tracking PSLF payments. Submit the Employment Certification Form every year, not just at the end. This ensures your payments are being counted correctly.
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Relief Resource Center may receive compensation when you use links or tools on this page. All programs listed are subject to eligibility requirements and availability. This page is for informational purposes only and does not constitute legal, financial, or medical advice.