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The SAVE Plan (Saving on a Valuable Education) was blocked by federal courts in 2025 and remains under litigation as of June 2026. Borrowers previously enrolled in SAVE have been placed in a general forbearance. Check studentaid.gov for the most current status. All other IDR plans (PAYE, IBR, ICR) remain available.
The main active student loan forgiveness programs in 2026 are: PSLF (10 years of public service payments), Teacher Loan Forgiveness (5 years of teaching), IDR forgiveness (20–25 years of income-driven payments), Total and Permanent Disability Discharge, and Borrower Defense to Repayment. Private loans do not qualify for federal forgiveness.
Program 1: Public Service Loan Forgiveness (PSLF)
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Source: U.S. Department of Education, Federal Student Aid — PSLF Program Statistics, Q1 2026.
Program 2: Income-Driven Repayment (IDR) Forgiveness
| Plan | Payment Cap | Forgiveness After | Available In 2026? |
|---|---|---|---|
| IBR (new borrowers) | 10% of discretionary income | 20 years | ✅ Yes |
| IBR (older borrowers) | 15% of discretionary income | 25 years | ✅ Yes |
| PAYE | 10% of discretionary income | 20 years | ✅ Yes |
| ICR | 20% of discretionary income | 25 years | ✅ Yes |
| SAVE | 5–10% of discretionary income | 10–20 years | ⚠️ Blocked (litigation) |
Source: U.S. Department of Education, Federal Student Aid — Income-Driven Repayment Plans; studentaid.gov/idr.
Program 3: Teacher Loan Forgiveness
- Amount: Up to $17,500 (math/science/special ed teachers) or $5,000 (other subjects)
- Requirement: 5 consecutive years teaching full-time in a low-income school
- Loan type: Direct Subsidized/Unsubsidized Loans, Subsidized/Unsubsidized Stafford Loans
- How to apply: Complete Teacher Loan Forgiveness Application after 5th year via studentaid.gov
Program 4: Total and Permanent Disability (TPD) Discharge
Borrowers who are totally and permanently disabled may have 100% of their federal student loans discharged. Documentation can come from the VA, SSA, or a physician. As of 2024, the Department of Education automatically identifies eligible borrowers through SSA data matching. Source: Federal Student Aid, TPD Discharge Program.
Program 5: Borrower Defense to Repayment
If your school misled you or violated state law related to your loan or education, you may qualify for a discharge. This primarily applies to borrowers who attended schools that closed or were found to have committed fraud (e.g., certain for-profit institutions). Apply at studentaid.gov/borrower-defense.
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Frequently Asked Questions
Is student loan forgiveness taxable?
PSLF forgiveness is permanently tax-free under federal law. IDR forgiveness was temporarily tax-free through 2025 under the American Rescue Plan Act — the status for 2026 IDR forgiveness may depend on Congressional action. Check IRS.gov or consult a tax advisor for current guidance. Source: IRS Publication 970.
Do private student loans qualify for forgiveness?
No. Federal forgiveness programs only apply to federal student loans held by the U.S. Department of Education. Private loans (from banks, credit unions, or private lenders) do not qualify for any federal forgiveness program. For private loans, refinancing to a lower rate is typically the best option.
What happened to the SAVE Plan?
The SAVE Plan (Saving on a Valuable Education) was introduced by the Biden Administration in 2023 and blocked by federal courts in 2025. As of June 2026, it remains under litigation. Borrowers previously enrolled have been placed in an interest-free forbearance. Monitor studentaid.gov for updates.