While the Biden administration has withdrawn its plans to forgive student loan debt for millions of people, there are still many other debt cancellation opportunities available, experts say. The U.S. Department of Education’s income-driven repayment plans, such as the Pay as You Earn Plan, can be a great option for borrowers with worries about how to pay their bills and hopes for eventual debt erasure. These plans set monthly payments based on income and family size, leading to loan forgiveness after a certain period, often 20 years or 25 years.
Additionally, the federal government still offers a range of student loan forgiveness programs, including Public Service Loan Forgiveness and Teacher Loan Forgiveness. Public Service Loan Forgiveness allows certain not-for-profit and government employees to have their federal student loans cleared after 10 years of on-time payments, while Teacher Loan Forgiveness offers loan forgiveness of up to $17,500 to full-time teachers who work in low-income schools or educational service agencies for five consecutive academic years.
Many states also offer their own student loan forgiveness programs, which may be based on occupation or finances. For example, in California, licensed mental health professionals who work at certain facilities for a set amount of time may be eligible for up to $15,000 in loan assistance. In Maine, the Maine Dental Education Loan Repayment Program offers up to $100,000 in student loan repayment assistance to dentists in underserved areas of the state.
Borrowers can search for more federal relief options at Studentaid.gov and track state-specific programs at the Institute of Student Loan Advisors’ database. To determine which repayment plan is best for you, experts recommend using online tools to compare your monthly student loan bill under different plans.