Covid-19 relief ending 

During the Covid-19 pandemic, repayment was suspended or paused on student loans issued by the U.S. Department of Education. Starting on September 1, 2023, interest will resume on these loans, and payments will be due starting in October of 2023. 

If you have a student loan payment starting, you may be able to reduce your monthly payments through income-driven repayment options. The U.S. Department of Education's newest repayment plan option is called Saving on a Valuable Education (SAVE). For most student borrowers, the SAVE plan offers lower monthly payments. Learn more about this program on the Federal Student Aid website. 

Learn more about student loan forgiveness, cancellation, or discharge options below.  

In some situations, you can have your federal student loans forgiven, canceled, or discharged.

You must pay your student loan even if:

• You can’t find a job,
• Do not finish your education,
• Are not happy with the education you received.

However, there are certain situations that allow your loan to be forgiven, canceled, or discharged. Below are possible types of forgiveness, cancelation, and discharge:

Closed school discharge

This is for borrowers whose school closed while they were enrolled. It's also for borrowers who withdrew from school within the 90 days before it closed.

Total and Permanent Disability (or death) Discharge

A total and permanent disability (TPD) discharge releases you from having to repay the following loans:

• William D. Ford Federal Direct Program loan
• Federal Family Education Loan (FFEL)
• Program loan
• Federal Perkins Loan
• Read more information about this

If the borrowers die, then the loan may be discharged. Your loan may be removed if you are a parent and a loan borrower, and you or the student dies..

Discharge in Bankruptcy (in rare cases)

Cancelation is possible only if the court rules that repayment would be an undue hardship for the borrower.

False Certification of Student Eligibility or Unauthorized Payment Discharge

If a school falsely certifies a borrower's eligibility to receive a loan.

Unpaid Refund Discharge

If the school does not make the required return of loan funds to the lender. The amount canceled would be the amount the school was required to return.

Teacher Loan Forgiveness

For teachers who have taught full-time for five consecutive years in a designated school or agency serving low-income students. (Must meet additional eligibility requirements.)

Public Service Loan Forgiveness

For borrowers who are not in default and who make 120 qualifying payments on the loan. See more details about the program.

Perkins Loan Cancelation and Discharge (includes Teacher Cancelation)

Details available in the Federal Perkins Loan Cancellation and Discharge Summary Chart.

Community Behavioral Health Care Professional Loan Repayment Program

The Illinois Student Assistance Commission (ISAC) has a program to help mental health and substance use professionals with their student loans. They must practice in a community mental health center in an underserved area.

To be eligible, you must:

• Be a US citizen or an eligible noncitizen,
• Live in Illinois,
• Have a student loan balance,
• Have worked at least 12 consecutive months as a behavioral health professional in the above mentioned settings, and
• Have not defaulted on a student loan.

The  Illinois Department of Financial and Professional Regulation must have given you your license. This program is for these professions:

• Psychiatrist,
• Psychologist who holds a doctoral degree,
• Advanced practice registered nurse,
• Physician assistant,
• Licensed clinical social worker,
• Licensed clinical professional counselor, or
• Certified Alcohol and Drug Counselor.

To apply, submit an application to ISAC. You may receive funding for up to 4 years. The award amount is based on your position and remaining loan balance. For each year of loan repayment assistance, you must work an additional 12-month period as a behavioral health professional. This must be in an underserved area.  

Borrow Defense Discharge

Borrowers may be eligible for forgiveness of the federal student loans used to attend a school if that school misled them or engaged in illegal conduct.

U.S. Armed Forces

Most branches of the U.S. Armed Forces have loan repayment programs. You can find details on their websites or from your local recruiter.

Additional Resources

Federal Student Aid

Learn more about ways to qualify for loan forgiveness, cancellation, or discharge on the Federal Student Aid website.

ISAC (Illinois Student Assistance Commission)

The State of Illinois offers help with student loans for qualifying residents. It usually requires a promise to work in Illinois for a set period of time in an understaffed field such as teaching or nursing. Applications are encouraged as soon as possible so you don't miss the deadline. Some of these programs are not currently funded due to the state budget. Read the Loan Forgiveness and Repayment Programs page for a full description of the programs, eligibility, and how to apply. Check each page below for updates about the status of the budget and funding for:

• Illinois Teachers Loan Repayment Program
• John R. Justice Student Loan Repayment Program
• Nurse Educator Loan Repayment Program
• Public Interest Attorney Loan Repayment Assistance Program
• Veterans' Home Medical Providers' Loan Repayment Program
• Community Behavioral Health Care Professional Loan Repayment Program

Equity and Representation in Health Care Workforce Repayment Program

The Equity and Representation in Health Care Workforce Repayment Program is a scholarship program that will be open to medical facilities and individuals. Funds from this program can be used to cover the cost of enrollment in a training program for medical assistants, dental assistants, or another healthcare profession training program offered by:

• An Illinois-based institution of higher education
• An online program accredited in Illinois
• An Illinois-based community college
• A recognized Illinois-based training entity. 

This scholarship can also cover lab fees, materials and test vouchers, background checks, drug screenings, and professional equipment and attire, such as scrubs. See the Department of Public Health website for more details.