For millions of borrowers across the country, student loan forgiveness remains one of the most pressing financial topics of the past decade and there is always a need for a student loan forgiveness update for physicians. But as court decisions, political shifts and new Department of Education initiatives continue to unfold, the landscape around student debt relief is anything but static.

Whether you’re navigating physician student loans, teaching in underserved areas or simply trying to understand what options apply to you, having clarification of the student loan forgiveness process is paramount.

Is the student loan forgiveness going to be approved?

Many borrowers have been left wondering: Will there be a student loan forgiveness update? As of mid-2025, the previous administration’s original forgiveness plan, which aimed to cancel up to $20,000 in federal student debt for millions, was struck down by the Supreme Court in 2023. However, rather than halt all efforts, the administration pivoted to a more targeted approach through existing legal frameworks.

In response, the Department of Education launched a new set of proposed rules under the Higher Education Act. These regulations are designed to forgive debt for borrowers experiencing unreasonable hardship and to address longstanding issues in older forgiveness programs. 

In the meantime, the Department continues to process smaller-scale debt relief for specific groups, including public service workers and those eligible through income-driven repayment adjustments.

What happened to student loan forgiveness?

Another question commonly asked and searched online is: Has there been a recent student loan forgiveness update? Most recently, during the COVID-19 pandemic, the HEROES Act provided a legal justification for widespread loan forgiveness for physicians. But in 2023, the Supreme Court ruled a sitting president lacked the authority to cancel student debt so broadly without congressional approval.

This decision halted potential relief for millions of borrowers who had already applied or were eligible. In the wake of that ruling the administration shifted strategy, pursuing debt cancellation through the Higher Education Act. This method allows for more limited cancellation under specific hardship criteria.

Despite these legal setbacks, the Department of Education has made several impactful changes. These include fixing errors in older programs, holding servicers accountable and providing targeted relief where possible. 

Who qualifies for debt forgiveness?

Many borrowers still qualify for forgiveness through existing federal programs. There are several ways to get student loans forgiven, depending on your employment history, repayment plan and type of loans.

One of the most prominent paths is Public Service Loan Forgiveness (PSLF). This program grants full loan forgiveness to borrowers who have made 120 qualifying payments while working full time in a public service or nonprofit role. If you meet the criteria, the remaining balance — no matter how large — is wiped away.

Another key route is through income-driven repayment (IDR) plans. These plans forgive any remaining debt after 20 or 25 years of repayment, depending on the specific plan. Many borrowers don’t realize that time spent in deferment or forbearance can now count toward this threshold thanks to the IDR account adjustment.

Teachers in low-income schools can benefit from the Teacher Loan Forgiveness program, which offers up to $17,500 in relief after five consecutive years of service. Meanwhile, those who were defrauded by their school may qualify under Borrower Defense to Repayment. Additionally, borrowers with a total and permanent disability are eligible for full discharge under the TPD program. And for those whose schools closed while they were enrolled or shortly after withdrawal, Closed School Discharge offers a way to eliminate that debt.

Even though widespread cancellation is on pause, these targeted programs are still helping hundreds of thousands of people reduce or eliminate their student loans.

Who is eligible for the public service loan forgiveness?

The Public Service Loan Forgiveness program remains a powerful option for many borrowers. To be eligible, you need to work full time for a qualifying employer. This includes federal, state, local or tribal government agencies and most nonprofit organizations.

In addition to the employment requirement, you must make 120 qualifying monthly payments under a qualifying repayment plan, typically an income-driven plan. Your loans must be federal Direct Loans, although older FFEL or Perkins Loans can become eligible if you consolidate them.

Thanks to recent reforms, PSLF has become more efficient and transparent. The PSLF Help Tool now allows borrowers to track progress, verify eligible employers and submit employment certification forms more easily. Even if you’ve previously been denied PSLF, it’s worth revisiting your eligibility. Many borrowers have since qualified under the one-time waiver or the IDR account adjustment initiative.

For those working multiple part-time jobs, there’s now an option to combine hours to meet the full-time employment threshold, adding flexibility and expanding access.

How do you know if you qualify for student loan forgiveness?

You’re not alone if you’ve asked yourself, “Do I qualify for student loan forgiveness?”

Fortunately, figuring this out is more straightforward than it used to be. The first step is to log into your account on StudentAid.gov. This portal displays your loan types, your servicer and your repayment plan history. From there, you can access the Loan Simulator tool, which estimates when you’ll be eligible for forgiveness under different scenarios, including PSLF and IDR.

If you’re pursuing PSLF, the PSLF Help Tool allows you to verify your employer, complete and submit the required employment certification and track your number of qualifying payments.

Another important factor is the ongoing IDR account adjustment. This one-time adjustment gives borrowers credit toward forgiveness for months previously deemed ineligible. That includes certain periods of deferment, forbearance and payments made before consolidation. 

What is the deadline to apply for student loan forgiveness?

When it comes to forgiveness programs, timing matters. One of the most important recent student loan forgiveness application deadlines has already occurred, but other forgiveness programs, such as those based on disability or school closure, don’t have a hard deadline, but they do require prompt action. Applying early helps avoid missed opportunities, and it also ensures you aren’t making unnecessary payments while your application is under review.

It’s essential to stay alert for scams, especially as deadlines approach. Always submit your applications through official channels, like StudentAid.gov or your loan servicer’s website.

What happens if I pay off all my student loans?

While paying off your student loans in full might feel like a relief, it could disqualify you from forgiveness. Some borrowers unknowingly make a final lump-sum payment to close out their balance, only to find out afterward that they were eligible for cancellation under PSLF or an IDR plan. That’s why it’s so important to understand how to apply for student loan forgiveness after 20 years, particularly under income-driven repayment.

Under these plans, your remaining balance is forgiven after two decades of qualifying payments. With the current IDR adjustment in effect, borrowers who have been repaying since the early 2000s might already meet this threshold, even if some of their payments were made under plans that previously didn’t qualify.

Before making your final payment, check your status. You might be months, or even days, away from qualifying for full forgiveness. A quick review with your servicer or on StudentAid.gov could save you tens of thousands of dollars.

How much will PSLF forgive?

Public Service Loan Forgiveness is one of the few programs that offers total forgiveness — and there’s no cap on the amount. If you meet the requirements, PSLF will forgive the full remaining balance of your Direct Loans after 120 qualifying payments.

This means whether you owe $15,000 or $300,000, the entire debt can be canceled through this program. That makes PSLF especially valuable for high-debt borrowers, such as those with advanced degrees or working in public healthcare or education.

The phrase “PSLF Trump” became a lightning rod during the first Trump administration as the program experienced high denial rates and administrative failures. Since then, reforms have dramatically improved the system. Under the Biden administration, over 850,000 borrowers have received forgiveness through PSLF, with more than $62 billion in debt erased.

Transparency has also improved. The Department of Education launched a PSLF dashboard to help borrowers track their progress and understand their eligibility. If you’re working in public service and still carrying federal student loans, PSLF is worth exploring – even if you were previously denied.

Student loan forgiveness remains a dynamic and rapidly evolving topic. Although broad cancellation efforts have hit legal roadblocks, targeted programs are still delivering meaningful relief to hundreds of thousands of borrowers. From Public Service Loan Forgiveness to income-driven repayment forgiveness, there are multiple paths toward debt freedom. The key is understanding which options apply to your situation and acting at the right time.

Want to read more about student loans and how they affect physicians. Check out the Student Loans and Stipends section of the PracticeLink Resource Center by clicking here.