Core Insights - Student loan debt affects nearly 43 million Americans, representing about 1 in 6 adults, with loan forgiveness providing significant relief for eligible borrowers [1] - The federal student loan system has undergone substantial changes since the beginning of President Trump's second term, with further updates anticipated [2] Federal Loan Forgiveness Programs - Four active federal loan forgiveness programs exist for borrowers based on employment or payment history, including Income-Driven Repayment (IDR) Forgiveness [3] - IDR plans allow borrowers to make reduced payments based on discretionary income and family size, with terms of 20 or 25 years, leading to forgiveness of remaining debt after the term [4] - Currently, only the Income-Based Repayment (IBR) plan is available for loan forgiveness, as other IDR plans are paused due to challenges from the Trump administration [5] Public Service Loan Forgiveness (PSLF) - PSLF is available for borrowers with Direct Loans who work full-time for qualifying employers, requiring 10 years of public service and 120 qualifying payments for forgiveness [6] - An executive order issued in March 2025 amended the criteria for eligible employers under PSLF, with the Department of Education reviewing the changes [7] Perkins Loan Cancellation and Discharge - Perkins Loan Cancellation is available for specific professions, including teachers and first responders, with eligibility based on employment in designated fields [8] - Borrowers can qualify for forgiveness of a percentage of their debt for each year of service, potentially up to 100% [9] Teacher Loan Forgiveness - Eligible teachers can receive up to $17,500 in loan forgiveness after teaching full-time for five consecutive years in low-income schools [10] Loan Discharge Programs - Loan discharge can occur due to circumstances beyond the borrower's control, such as disability or school closure [11] - Borrowers may qualify for discharge if they declare bankruptcy and prove undue financial hardship [12] - Borrower Defense to Repayment is available for those misled by their college, although current applications are on hold due to an injunction [13] State Forgiveness Programs - Some states offer their own loan forgiveness programs, which may cover both federal and private loans, aimed at attracting workers in high-need areas [21] - Examples include Iowa's Rural Veterinarian Loan Repayment Program, New Mexico's Public Service Law Loan Repayment Program, and New Jersey's STEM Loan Redemption Program [22]