Don’t Pay That Loan Yet – These Government Reliefs Could Wipe It Out”

Are you still grinding away at your student loan payments, wondering if there’s a light at the end of the tunnel? You’re not alone and the good news is, there might be a break closer than you think.

Thanks to several government relief programs still active in 2025, there’s a chance you could reduce or even completely wipe out your student loan debt. Before you send in that next payment, take a few minutes to see if you qualify for one of these programs. Your future self (and bank account) will thank you.

The Student Loan Landscape in 2025

Navigating student loans can feel like wandering through a maze blindfolded. And just when you think you’ve got it figured out, the rules change again. In 2025, we’re seeing new developments, some helpful and some… not so much.

Despite political shifts and legal battles, several relief programs are still active and helping people. If you’re working in public service, education, or certain underserved areas or were taken advantage of by a shady school you might qualify for relief you didn’t even know existed.

1. Public Service Loan Forgiveness (PSLF)

If you’re working in government, public health, or a nonprofit, PSLF should be on your radar. This program forgives your remaining balance after 120 qualifying payments (that’s 10 years if you’re on time).

🔗 studentaid.gov/manage-loans/forgiveness-cancellation/public-service

The catch? Your job and loan type have to qualify. But here’s some good news: recent changes have made it easier to apply and track your progress.

2. Income-Driven Repayment (IDR) and the SAVE Plan

Can’t afford those massive monthly payments? IDR plans let you pay a percentage of your income instead. After 20–25 years of consistent payments, the rest of your loan may be forgiven.

🔗 studentaid.gov/manage-loans/repayment/plans/income-driven

Biden’s SAVE Plan (an update to IDR) introduced even better terms, lower monthly payments, no interest build-up—but it’s currently on pause due to legal challenges. Still, standard IDR plans are available and can make a big difference in your budget today.

3. Teacher Loan Forgiveness

If you’re a teacher in a low-income area and you’ve stuck with it for at least five years, you could be eligible for up to $17,500 in loan forgiveness. That’s no small chunk of change.

🔗 studentaid.gov/manage-loans/forgiveness-cancellation/teacher

Just note: this program doesn’t stack with PSLF for the same service period, so you’ll want to pick the one that gives you the most benefit long-term.

4. Borrower Defense to Repayment

Were you misled or outright scammed by your college? If so, you may be eligible for loan forgiveness under the Borrower Defense program.

🔗 studentaid.gov/borrower-defense

This mainly applies to students from now-defunct schools like Corinthian Colleges and ITT Tech, but others may qualify too. You’ll need to show evidence that your school lied about job placement rates, tuition costs, or the value of your degree.

5. State-Based Loan Forgiveness Programs

Some states are stepping up with their own programs, especially for professionals in high-demand areas.

nhsc.hrsa.gov/loan-repayment/state-loan-repayment-program

• California offers loan repayment to healthcare workers serving in underserved communities.
• New York has a Young Farmers Loan Forgiveness program for grads working in agriculture.
• Other states have their own unique offerings, worth checking your state’s education or labor website.

6. Employer-Based Repayment Assistance

This one’s a bit under the radar, but growing in popularity. Some employers now offer student loan repayment as part of their benefits package—up to $5,250 per year tax-free until the end of 2025.

irs.gov/newsroom/reminder-educational-assistance-programs-can-help-pay-workers-student-loans

If you’re job hunting or currently employed, it’s worth asking about. You might even be able to negotiate it into your compensation package.

What’s Changing (and Why You Should Act Soon)

Things are shifting fast. The proposed federal budget includes cuts to certain loan types like Grad PLUS, and subsidized loans might be on the chopping block too. There’s also a potential narrowing of PSLF eligibility, especially for employees at nonprofits that engage in controversial work.

And collections have restarted. If your loan was in default, you could be looking at wage garnishments or tax refund seizures again, unless you get into a relief program or rehab the loan in time.

What You Should Do Right Now

Here’s your to-do list if you want to stop throwing money at your loans unnecessarily:

1. Check your eligibility
   Use tools like the PSLF Help Tool or Loan Simulator to see where you stand.
2. Apply for an IDR plan
   Even if you don’t qualify for forgiveness now, IDR can lower your monthly payment and help you stay current.
3. Sign up for updates
   Follow StudentAid.gov and your state’s higher ed department for the latest info. Laws and opportunities change fast.
4. Talk to your HR department
   Find out if your employer offers repayment assistance.

Opportunity Doesn’t Knock Twice

If you’ve made it this far, here’s the bottom line: don’t keep paying blindly. The programs are there. The tools exist. All it takes is a little bit of time and effort to potentially save tens of thousands of dollars.

It’s easy to feel stuck when you’ve got debt hanging over your head, but you’re not powerless. These relief programs could be the break you’ve been hoping for.

So before you hit “Pay Now” on that next loan installment… double-check if you really need to.