8 jobs that provide loan forgiveness

Certain careers in teaching, healthcare, government, military, law, nonprofits, and veterinary medicine can erase student debt through federal programs or employer benefits. This guide explains eight jobs that provide loan forgiveness, typical forgiveness amounts, and what it takes to qualify for each path.

Choosing a career in public service often means accepting a lower starting salary compared to the private sector. However, the potential to eliminate tens of thousands of dollars in student debt can make these roles financially strategic. Whether you are a parent helping a student map out their future or a graduate looking to manage existing debt, understanding these specific career pathways is essential.

You’ll learn about the specific eligibility requirements for each field, the difference between federal forgiveness and employer repayment assistance, and how to verify if a job qualifies before signing a contract.

How loan forgiveness programs work

Before exploring specific careers, it is important to understand the mechanisms that make forgiveness possible. Generally, relief comes through two main channels: federal forgiveness programs and employer-based Loan Repayment Assistance Programs (LRAPs).

Public Service Loan Forgiveness (PSLF) is the most common federal pathway. According to StudentAid.gov, it forgives the remaining balance on Direct Loans after the borrower makes 120 qualifying monthly payments (roughly 10 years) while working full-time for a qualifying employer. Qualifying employers include government organizations at any level (federal, state, local, or tribal) and 501(c)(3) nonprofits. Importantly, PSLF amounts are tax-free. For more details on the process, read our PSLF guide.

Teacher Loan Forgiveness is a separate federal program specifically for educators. It offers a fixed amount of forgiveness after five consecutive years of service, which is a shorter timeline than PSLF. However, it applies to a narrower group of borrowers and has lower monetary caps.

Employer LRAPs function differently. Instead of the government forgiving the debt, an employer (such as a hospital, government agency, or law firm) makes direct payments toward your loans as a recruitment or retention benefit. Unlike PSLF, these payments may be considered taxable income unless specific exceptions apply. While PSLF requires federal Direct Loans, some employer LRAPs can be used to pay down private student loans as well.

Quick comparison: jobs that provide loan forgiveness

Let’s explore each career path in detail, starting with a high-level view of how these professions compare regarding forgiveness potential. This table outlines the primary programs available for each job category.

Source: StudentAid.gov, HRSA, DoD, USDA (program limits current as of January 2025)

Decision Checklist: Is a Forgiveness Career Right for You?

• Career Interest: Do you genuinely want to work in this field? Forgiveness shouldn’t be the only driver.
• Loan Type: Do you have federal Direct Loans? Most programs require them.
• Salary Trade-off: Have you calculated if the forgiveness amount outweighs the potential higher salary in the private sector?
• Timeline: Are you prepared to commit to 2–10 years of service in potentially underserved areas?
• Employer Benefits: Does the specific employer offer an LRAP on top of federal eligibility?

Teachers: up to $17,500 in forgiveness plus PSLF

Teaching is one of the most well-known paths for student loan relief. Educators have access to two distinct federal programs that can significantly reduce their debt burden: the Teacher Loan Forgiveness Program and Public Service Loan Forgiveness (PSLF).

Teacher Loan Forgiveness is designed to encourage educators to work in low-income schools. According to StudentAid.gov, as of January 2025, this program forgives up to $17,500 for highly qualified mathematics, science, and special education teachers, while other full-time qualifying teachers can receive up to $5,000. To qualify, you must teach for five complete and consecutive academic years at a low-income school or educational service agency listed in the Teacher Cancellation Low Income (TCLI) directory.

The PSLF pathway offers a different benefit structure. While it requires 10 years of service (120 qualifying payments), it forgives the entire remaining balance of your Direct Loans tax-free. This is often more beneficial for teachers with high debt loads, such as those with master’s degrees. Teachers at any public school or tax-exempt private school generally qualify for PSLF.

Strategically, teachers with high debt can sometimes pursue both. However, you cannot count the same period of service for both programs simultaneously. You would need to complete your five years for Teacher Loan Forgiveness and then an additional 10 years for PSLF. For a deeper dive into eligibility, see our Teacher Loan Forgiveness guide.

Nurses and healthcare professionals: NHSC and state programs

Healthcare professionals have similar opportunities, often with higher forgiveness amounts due to the critical need for medical services in underserved communities. Beyond standard PSLF eligibility, nurses can access specialized programs administered by the Health Resources and Services Administration (HRSA).

The Nurse Corps Loan Repayment Program is a highly competitive option. According to HRSA, as of January 2025, it pays up to 85% of unpaid nursing education debt for registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty. Participants must commit to a two-year service contract at a Critical Shortage Facility (CSF) or an eligible school of nursing. An optional third year of service can yield an additional 20% in repayment assistance. Awards are subject to funding availability and are prioritized based on the financial need of the applicant and the facility’s shortage status.

The National Health Service Corps (NHSC) Loan Repayment Program is another major avenue. According to HRSA, it offers up to $50,000 in exchange for a two-year full-time service commitment at an NHSC-approved site in a Health Professional Shortage Area (HPSA). This program is open to nurse practitioners, certified nurse-midwives, and physician assistants, alongside other health providers. Amounts vary based on the severity of the shortage in the area served.

Additionally, almost all nurses working in nonprofit hospitals or public health agencies are eligible for PSLF. Many states also operate their own loan forgiveness initiatives to retain nursing talent locally. For more on medical career paths, visit our college planning guide.

Government employees: PSLF-eligible positions

Many healthcare workers already qualify for PSLF through public hospitals, which leads us to government employment more broadly. Working for the government—federal, state, local, or tribal—opens the door to PSLF regardless of your specific job title.

PSLF Eligibility covers a vast array of roles. Whether you are an accountant, an IT specialist, a law enforcement officer, or a city planner, if your employer is a government entity and you work full-time (typically 30 hours per week or more), your Direct Loans are eligible for forgiveness after 120 qualifying payments.

Federal employees may also access the Federal Student Loan Repayment Program (FSLRP). According to the Office of Personnel Management (OPM), as of January 2025, under this program, federal agencies can repay up to $10,000 per year of an employee’s federal student loans, with a lifetime maximum of $60,000. This benefit is discretionary; agencies use it as a recruitment or retention tool for highly qualified candidates. It is important to note that FSLRP payments come with a service agreement (usually three years) and are taxable income, unlike PSLF forgiveness.

Agencies known for utilizing these benefits include the Department of Justice, the Department of State, and the Securities and Exchange Commission, though availability varies by budget year and department needs.

Military service members: DoD and branch-specific programs

Military service offers some of the most substantial loan repayment benefits available. While all active-duty service members working full-time qualify for PSLF, the armed forces also offer direct loan repayment programs as enlistment incentives.

The College Loan Repayment Program (CLRP) is the primary vehicle for this aid. According to the Department of Defense, as of October 2024, the program can repay up to $65,000 of federal student loans for qualifying enlistees. The program typically pays 33.33% of the outstanding principal balance or $1,500 (whichever is greater) for each year of service.

However, eligibility is branch-specific and often tied to your Military Occupational Specialty (MOS):

• Army & Navy: Offer repayment up to the $65,000 cap for specific high-demand ratings or specialties.
• Air Force: Historically offers CLRP for Judge Advocate General (JAG) officers and certain enlisted roles, though availability fluctuates.
• National Guard: Often combines federal benefits with state-specific tuition assistance and loan repayment programs.

Crucially, CLRP must be included in your enlistment contract before you sign; it cannot be added retroactively. Additionally, these payments are generally considered taxable income, and the program only applies to federal student loans—private loans are not eligible.

Public interest lawyers: PSLF and legal aid programs

Military JAG officers represent one pathway for lawyers; civilian public interest law offers another. Law school graduates often face six-figure debt, making forgiveness programs essential for those who wish to work in public service rather than high-paying corporate firms.

PSLF for Lawyers is a powerful tool. Attorneys working as public defenders, prosecutors, or legal aid lawyers for 501(c)(3) nonprofits qualify for full tax-free forgiveness after 10 years. Because law school debt is often substantial, the amount forgiven can be significant. Income-driven repayment plans allow these attorneys to make manageable monthly payments based on their public-sector salary while working toward forgiveness.

Law School LRAPs are institutional programs offered by many law schools to support graduates entering public interest careers. These programs typically provide funds to help graduates make their monthly loan payments. If the graduate remains in eligible employment for a set period, the loans from the school are often forgiven.

At the federal level, the Department of Justice Attorney Student Loan Repayment Program offers up to $6,000 per year in repayment assistance for DOJ attorneys, subject to a three-year service agreement. This can be a vital supplement to PSLF eligibility.

Doctors and physicians: NHSC, state, and hospital programs

Like lawyers, physicians often graduate with substantial debt, but specialized programs offer significant relief. Medical school debt often exceeds $200,000, making aggressive repayment assistance a key factor in career planning.

The National Health Service Corps (NHSC) Loan Repayment Program is a primary resource for primary care physicians, dental professionals, and mental health providers. According to HRSA, as of January 2025, the program awards up to $50,000 for an initial two-year full-time service commitment. Providers willing to work in areas with more severe professional shortages can receive higher award amounts. After the initial contract, physicians can apply for continuation awards to pay off remaining debt.

Indian Health Service (IHS) Loan Repayment offers similar benefits, providing up to $50,000 for a two-year commitment to serve in health facilities serving American Indian and Alaska Native communities.

Beyond federal programs, many hospital systems offer loan repayment as a recruitment incentive, particularly for specialists in rural areas. While these private employer payments are taxable, they provide immediate liquidity. Furthermore, employment at any nonprofit hospital—which constitutes the majority of U.S. hospitals—qualifies a physician for PSLF.

Nonprofit organization employees: PSLF eligibility

Many healthcare employers are nonprofits, which brings us to the broader category of nonprofit employment. You do not need to be a doctor, lawyer, or teacher to qualify for forgiveness; the tax status of your employer is what counts.

PSLF Eligibility extends to full-time employees of 501(c)(3) tax-exempt nonprofit organizations. This includes a vast range of employers, such as:

• Charitable organizations and foundations
• Private nonprofit universities and colleges
• Research institutions
• Social service agencies
• Cultural institutions like museums and libraries

The specific role you hold does not determine eligibility. A graphic designer, accountant, or HR manager working for a qualifying nonprofit is just as eligible as a social worker. According to Sandy Baum, higher education finance expert, “Borrowing is not inherently bad; the question is how much, and under what terms.” For many, accepting a nonprofit salary with PSLF benefits offers better long-term terms than a higher private-sector salary with heavy debt repayment.

To ensure your employment qualifies, use the PSLF Help Tool on StudentAid.gov and submit an Employment Certification Form annually. For a step-by-step walkthrough, refer to our PSLF guide.

Veterinarians: VMLRP and public health roles

Our final career category serves a critical public health need in rural communities. Veterinarians face high debt-to-income ratios, but specific programs exist to alleviate this burden.

The Veterinary Medicine Loan Repayment Program (VMLRP) is the leading federal option. According to the USDA, as of January 2025, this program provides up to $25,000 per year in loan repayment. In exchange, veterinarians must commit to at least three years of service in a designated veterinary shortage area. These areas typically involve food animal medicine or public health practice in rural regions.

Veterinarians can also find forgiveness through public health roles. Agencies like the FDA, CDC, and USDA employ veterinarians to ensure food safety and control zoonotic diseases. These are government positions, making them eligible for PSLF and potentially the Federal Student Loan Repayment Program.

Additionally, faculty positions at public university veterinary schools are eligible for PSLF, offering an academic route to debt relief.

Key considerations when choosing a career for loan forgiveness

With these options in mind, here’s how to evaluate whether pursuing loan forgiveness makes sense for your situation. While the financial benefits are real, they require strategic planning.

Prioritize Career Fit: Forgiveness requires years of service. If you burn out after three years in a job you dislike, you may leave with significant debt and no forgiveness. The career must be sustainable for you personally.

Evaluate the Salary Gap: Compare the total compensation. A corporate law job might pay $50,000 more per year than a public defender role. Over 10 years, that extra income might allow you to pay off loans faster than PSLF would forgive them.

Understand the Commitment: Programs like the military CLRP or NHSC require binding contracts. Leaving early can result in losing benefits or even having to repay funds with interest.

Federal vs. Private Loans: Remember that federal forgiveness programs only apply to federal loans. According to Betsy Mayotte, student loan expert, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.” If you have private loans, they will not be forgiven by PSLF, TLF, or most federal agency programs, though some employer cash bonuses can be used to pay them.

Frequently asked questions

No, federal forgiveness programs like PSLF and Teacher Loan Forgiveness require federal Direct Loans. Private loans do not qualify for these programs, though some employer-based repayment assistance (cash bonuses) can be used to pay down private debt.

For PSLF, you do not lose credit for payments made; you can resume progress if you return to a qualifying employer later. However, for contract-based programs like the NHSC or military CLRP, leaving early often results in a penalty or a requirement to pay back funds received.

Generally, no. You must work full-time, which is defined as at least 30 hours per week or your employer’s definition of full-time, whichever is greater. However, you can work two qualifying part-time jobs that total at least 30 hours per week to qualify.

If you have older federal loans like FFEL or Perkins loans, you must consolidate them into a Direct Consolidation Loan to make them eligible for PSLF. If you already have Direct Loans, consolidation is not required. Learn more in our loan consolidation guide.

The most reliable method is to use the PSLF Help Tool on StudentAid.gov. This tool allows you to search for your employer by their Employer Identification Number (EIN) to verify their eligibility status.

Choosing a career that offers loan forgiveness can transform your financial future, turning unmanageable debt into a solvable problem. Whether you choose to teach, serve in the military, or work for a nonprofit, the path to forgiveness requires careful planning and adherence to program rules.

Key Takeaways:

• Eight major career paths offer substantial loan forgiveness through federal programs or employer benefits.
• PSLF provides tax-free forgiveness after 10 years for qualifying government and nonprofit employees.
• Specialized programs like the NHSC, VMLRP, and military CLRP offer faster forgiveness in exchange for service commitments.
• Federal loans are essential for these programs; private loans generally do not qualify for federal forgiveness.
• Always verify employer eligibility and loan types before counting on forgiveness.

If you are currently working in one of these fields, submit an Employment Certification Form to track your progress. If you are a student planning your future, research these programs early to align your borrowing strategy with your career goals.

Private loans should typically be used only to bridge the gap after maximizing federal aid, as they lack these forgiveness benefits. However, if you need to cover remaining costs, ensure you get the best terms possible.

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For a comprehensive overview of all your borrowing options, read our student loans guide.

References and resources

• StudentAid.gov: The official source for PSLF, Teacher Loan Forgiveness, and the PSLF Help Tool.
• HRSA.gov: Detailed information on the National Health Service Corps and Nurse Corps Loan Repayment Programs.
• Defense.gov: Official information regarding military benefits and the College Loan Repayment Program.
• NIFA.USDA.gov: Application details and shortage areas for the Veterinary Medicine Loan Repayment Program.
• OPM.gov: Guidelines and agency lists for the Federal Student Loan Repayment Program.