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LESSER-KNOWN PROGRAMS —
The Forgiveness Programs Hiding in Plain Sight
Beyond the big-name programs, there are dozens of federal, state, and employer-specific forgiveness programs that most borrowers have never heard of. Here are the ones with the broadest eligibility.
4. Borrower Defense to Repayment
If your school misled you about its programs, lied about job placement rates, or engaged in other forms of fraud, you may be entitled to complete discharge of your federal student loans. This applies even if you’ve already graduated or dropped out.
This program has been used extensively by former students of schools that were found to have defrauded students. If you attended a school that later closed or was found to have made false claims, check whether you qualify.
5. Total and Permanent Disability (TPD) Discharge
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If you are totally and permanently disabled, you can have your federal student loans completely discharged. The discharge can be based on documentation from the VA (for veterans), the Social Security Administration, or a physician.
As of recent data, hundreds of thousands of borrowers have received disability discharges. If you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), you may automatically qualify.
6. Closed School Discharge
If your school closed while you were enrolled or shortly after you withdrew, you may be eligible for a full discharge of your federal loans. This applies to many borrowers who attended for-profit schools that have shut down over the past decade.
7. State-Specific Loan Forgiveness Programs
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This is where many borrowers leave money on the table. Almost every state offers some form of loan repayment assistance, and eligibility varies widely. Examples include:
- New York — Teachers in subject shortage areas can receive up to $20,000 in forgiveness
- California — The state offers loan repayment assistance for healthcare providers, teachers, and lawyers serving underserved communities
- Texas — Several programs for teachers, nurses, and physicians working in shortage areas
- Pennsylvania — Loan forgiveness for primary care practitioners serving in underserved areas
- Massachusetts — Loan repayment assistance for public defenders and legal aid attorneys
Many states also offer forgiveness programs for nurses, doctors, veterinarians, dentists, mental health professionals, and social workers who serve in underserved or rural areas.
8. Military and Veterans Programs
Military servicemembers have access to some of the most generous loan forgiveness available:
- Army, Navy, Air Force College Loan Repayment Program (CLRP): Up to $65,000 forgiven over 3 years for active duty enlistees
- National Guard: Up to $20,000 over a 6-year commitment
- Servicemembers Civil Relief Act (SCRA): Caps interest rates at 6% during active duty
- Veterans Total Disability Discharge: Full loan discharge for veterans with service-connected disabilities
9. Employer-Based Repayment Programs
A growing number of employers now offer student loan repayment as a benefit. Companies like Google, Aetna, Fidelity, and many hospitals and nonprofits offer to pay a portion of their employees’ student loans. Some federal agencies also offer recruitment and retention bonuses specifically tied to loan repayment.
Check your HR department — you may be leaving free money unclaimed.
[NEXT PAGE: How to Check If You Qualify — A Step-by-Step Guide →]
