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 start of President Trump's second term, with more updates anticipated [2] Federal Loan Forgiveness Programs - Four active federal loan forgiveness programs exist for borrowers based on employment or payment history: Income-Driven Repayment (IDR) Forgiveness, Public Service Loan Forgiveness (PSLF), Perkins Loan Cancellation, and Teacher Loan Forgiveness [3][7][11] - IDR plans allow borrowers to make reduced payments based on discretionary income and family size, with loan terms of 20 or 25 years, leading to forgiveness of remaining debt after the term [4][6] - PSLF is available for borrowers working full-time in qualifying nonprofit or government jobs, requiring 120 monthly payments for forgiveness [7] - Perkins Loan Cancellation offers forgiveness for borrowers in specific professions, such as teachers and first responders, with up to 100% of the loan forgiven based on years of service [9][10] IDR Plans - Borrowers can apply for three IDR plans: Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), and Income-Based Repayment (IBR), with the ICR and PAYE plans phasing out by 2028 [5][6] - Payments made under IDR plans qualify for PSLF, enhancing the potential for forgiveness for public service workers [7] Teacher Loan Forgiveness - Eligible teachers can receive up to $17,500 in loan forgiveness after five consecutive years of full-time teaching in low-income schools, with a lower maximum of $5,000 for those who do not meet specific criteria [11] Loan Discharge Programs - Certain circumstances, such as total and permanent disability, school closure, or false certification by a school, can lead to loan discharge, with specific eligibility criteria for each situation [12][20][21] - An injunction currently prevents the Department of Education from processing applications for borrower defense to repayment and closed school discharges [14][18] State Forgiveness Programs - Some states offer their own loan forgiveness or repayment programs, which may apply to both federal and private loans, aimed at attracting workers in high-need areas [23] - 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, providing significant financial assistance for eligible professionals [24]