There’s no simple way to get rid of student loans without paying. But for federal student loans, there are forgiveness programs available after you make payments and meet other qualifications.
The most easily accessible student loan forgiveness programs include:
Public Service Loan Forgiveness: After 10 years of making payments while working full time for a qualifying government or nonprofit employer, the rest of your loan debt is forgiven. It’s tough to qualify, and you’ll need to submit an employment certification form every year during the 10 years it takes to qualify so you stay on track.
Forgiveness through income-driven repayment (IDR): This is your best option to keep payments manageable. The U.S. Department of Education offers four types of income-driven repayment plans. Your monthly bill amount is set at a portion of your income, and after 20, 25 or 30 years, your remaining debt is forgiven. If you take out any new student loans the only IDR plan you are eligible for is the new Repayment Assistance Plan.
Teacher Loan Forgiveness: After teaching full time for five consecutive years at a qualifying low-income school, you could see up to $17,500 of your loans forgiven.
Any other forgiveness programs that promise to get rid of your debt without making payments are a scam. Your loans can be forgiven only by your lender or servicer.
You can also refinance your loans to try and get a more favorable rate or loan term. This depends on your income, credit history and financial profile. If you refinance for a longer term, you could pay less each month now but more in interest over time. When you refinance federal loans, you permanently give up federal loan forgiveness and IDR plans.
How to get rid of private student debt
One of the few ways to get rid of private student debt is through bankruptcy discharge. It’s an arduous — and expensive — process. You’ll have to file Chapter 7 or Chapter 13 bankruptcy, then file an additional lawsuit known as an adversary proceeding. You’ll likely need a bankruptcy attorney throughout the process, and an attorney can cost thousands.
If you’re having difficulty making payments, your best option is to contact your private loan holder about renegotiating your payment or taking a short-term payment pause.
Additional ways loans may be forgiven
There are two other instances in which your loans may be forgiven without making a payment:
Total and permanent disability discharge is available for federal student loans if you become disabled and can no longer work. Some private lenders offer their own disability discharge, but it isn't guaranteed, so check your loan agreement.
Death discharge — when the primary borrower dies — forgives all federal student loans, and releases co-signers from private student loans.
If you are in a dire student loan situation, such as default, one additional option to consider is settling your debt for less than you owe. If you’re successful, it won’t get rid of all your debt, but it can help ease the burden.
