Student loan forgiveness programs expand options for borrowers in 2025

In 2025, several student loan forgiveness programs are available to help eligible borrowers. The Public Service Loan Forgiveness (PSLF) program offers tax-free forgiveness for those working in government or non-profit jobs, but only 3% of applications from late 2020 to mid-2023 were approved. Income-Driven Repayment (IDR) plans provide another option, adjusting monthly payments based on income and household size. Borrowers can receive forgiveness after 20 to 25 years of payments, with the government covering unpaid interest if payments are insufficient. Targeted forgiveness programs are also available for specific professions. Teachers can receive up to $17,500 after five years in low-income schools, while nurses can have up to 85% of their education debt forgiven for working in underserved areas.