Teacher Student Loan Forgiveness: What are the best programs available for borrowers?

Teachers across the United States face the dual burden of serving their communities and managing student loan debt. Fortunately, several federal and state-level forgiveness programs exist to ease that financial load.

Here’s a breakdown of the top student loan forgiveness options available to educators in 2025.

Public Service Loan Forgiveness (PSLF)

PSLF remains one of the most impactful forgiveness programs for teachers. It forgives the remaining balance on Direct Loans after 120 qualifying payments (typically over 10 years) while working for a qualified employer-often a public school or nonprofit.

Borrowers must be on an income-driven repayment (IDR) plan to maximize benefits, and only Direct Loans are eligible. Unlike other options, PSLF does not require work at a low-income school. Forgiven amounts are not taxed, and the PSLF Help Tool at StudentAid.gov can assist with eligibility confirmation.

Teacher Loan Forgiveness (TLF)

The TLF program offers up to $17,500 in loan forgiveness for highly qualified teachers in specific subject areas like math, science, and special education. Other eligible teachers may receive up to $5,000.

To qualify, educators must work full-time for five consecutive academic years at a qualifying school. Importantly, loans under PLUS or Perkins are not eligible. While TLF may offer earlier relief than PSLF, borrowers cannot use the same service period for both programs.

Perkins Loan Cancellation for Teachers

Educators with Federal Perkins Loans may qualify for up to 100% cancellation over five years of full-time teaching at a low-income school or in high-need subject areas.

This program cancels a portion of the loan annually, and also includes accrued interest. Consolidating these loans into a Direct Loan would disqualify them from this benefit, so it’s crucial to assess your loan types first.

State-Sponsored Forgiveness Programs

Many states offer their own forgiveness incentives to attract teachers to high-need districts or underserved areas. Contact your state education agency to explore localized programs that may complement federal options.

Choosing the right forgiveness program depends on your loan type, teaching assignment, and career timeline. Consider using the Loan Simulator at StudentAid.gov or speaking with your loan servicer to evaluate the best strategy for long-term savings.