Glossary Terms

Loan Forgiveness

Loan Forgiveness
Reviewed by Minh Tong
Updated December 12, 2022

Loan forgiveness is a type of debt relief program that allows you to have some or all of your student loans forgiven based on your employment, income level, and other qualification criteria. Loan forgiveness is typically offered only through government programs, such as the Public Service Loan Forgiveness Program, which offers loan repayment for qualifying individuals who work for the public sector or in nonprofit organizations. Additionally, private lenders may offer some benefits to their customers, such as the option to make interest-only payments while enrolled in school. However, most student loan borrowers will not qualify for these benefits and will instead experience high levels of debt due to steep repayment terms and interest rates. If you’re struggling with student loan debt or want more information about how much help may be available to you, speak with a financial advisor or contact your student loan lender.

Loan forgiveness is designed to assist individuals in managing the high cost of education by providing relief from some or all of their student loan debt. Eligibility requirements vary depending on the program, but may include factors such as employment type and income level. Loan forgiveness programs are typically offered through government agencies and nonprofit organizations, although private lenders may also offer certain benefits to their customers. However, few borrowers will qualify for these programs and most will instead be saddled with high levels of debt due to steep interest rates and repayment terms. If you’re struggling with student loans or want more information about what options might be available to you, speak with an Americor professional, financial advisor, or your student loan lender to learn more about potential opportunities and the associated eligibility requirements.​