School Counselor Student Loan Forgiveness: Complete Guide 2024

Quick Facts

• School counselors working in public or eligible private schools may qualify for loan forgiveness. This applies to counselors in public, charter, or nonprofit private schools.
• You need to have Direct Loans to qualify for PSLF. Other loans, like FFEL or Perkins Loans, must be consolidated into a Direct LoanDirect LoanA federal student loan made directly by the U.S. Department of Education under the William D. Ford Federal Direct Loan Program. Most federal student loans issued since 2010 are Direct Loans. to be eligible.
• You may avail of a Disability Discharge or Borrower Defense if PSLF or IDR forgivenessIDR ForgivenessThe forgiveness of any remaining federal student loan balance after a borrower has completed 20 or 25 years of qualifying payments under an income-driven repayment plan, depending on the specific plan. isn’t applicable.

Overview

School counselors may qualify for student loan forgiveness, but with so many programs and recent changes, figuring out your options can be overwhelming. This resource cuts through the confusion to help you find the right path for debt relief.

Covers loan forgiveness for:

• Elementary School Counselors
• Middle School Counselors
• High School Counselors
• College/Career Counselors
• Special Education Counselors
• Public, Private, and Charter School Settings

We know you’re juggling a lot between supporting your students and managing daily responsibilities. Plus, if you’ve seen loan forgiveness options for teachers or healthcare providers and wondered if they apply to you, you’re not alone.

We’ll break down which programs are actually relevant for school counselors, how to apply, and what steps you can take right now to reduce your debt.

Let’s make it easier.

Related

• Biden Student Loan Forgiveness
• Student Loan Forgiveness Programs For Teachers

Public Service Loan ForgivenessPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer.

And the best part? The forgiveness is tax-free. That means you won’t owe taxes on the remaining balance that’s forgiven — a huge relief for many loan borrowers

Here’s how it works:

1. Employer Eligibility: You need to work full-time (at least 30 hours per week) for a local, state, federal government, or tribal government school or a qualified nonprofit. All public schools qualify, regardless of whether they’re in a Title 1 district. Many private and charter schools also qualify because they’re often set up as 501(c)(3) nonprofits.
2. Loan Type: Only Direct Loans qualify. If you borrowed before 2010, you might have older loans like Federal Family Education Loans (FFEL) or Perkins Loans. Don’t worry—those can still be eligible if you consolidate them into a Direct Consolidation Loan.
3. Payment Plan: You need to make 10 years’ worth of student loan payments under a qualifying repayment plan. Payments made under the 10-Year Standard Repayment Plan and Income-Driven RepaymentIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments. Plans count toward PSLF.
4. Employment Certification: Submit a PSLF Employment Certification FormEmployment Certification Form (ECF)The federal form used to certify qualifying employment for Public Service Loan Forgiveness. Borrowers submit the form to their servicer to have qualifying payments counted toward PSLF.. You can do this at any time, even if you’ve been working as a school counselor for years. Plus, you can get credit for any qualifying public service work dating back to 2007.

Common Qualifying Employers

• Public Schools
• Charter Schools
• Non-Profit Educational Organizations

School counselors often work in public or charter schools, which may automatically qualify as eligible employers for PSLF. But if you’re at a private, for-profit institution, make sure to confirm your eligibility with your lender, as those employers typically don’t qualify.

Specific Challenges or Considerations

• Part-Time Work Across Multiple Schools: If you work part-time at different schools, make sure your combined part-time hours meet the full-time requirement. Keep track of your hours, and don’t forget to submit your certification forms.
• Employer Tax Status: Check your employer’s tax status, especially for those in charter schools. Eligibility may depend on the organization’s structure.
• Switching Employers: If you’ve changed jobs, keep thorough records of past employment, including signed employment certification forms. This will make it easier to track your qualifying payments.

Related: Public Service Loan Forgiveness: What It Is, How It Works

IDR Forgiveness

Who Should Consider IDR Forgiveness?

1. Not in Public Service? If you don’t work for a qualifying public service employer, IDR forgiveness could be your path. By enrolling in an IDR plan, you’ll make monthly payments based on your income for 20 to 25 years, after which your remaining balance can be forgiven. It’s a longer timeline, but it’s an effective option if you’re outside of the public sector.
2. Late to Public Service? Maybe you’ve recently started working as a school counselor in a public or nonprofit school, but you don’t have ten years left before retirement. Or perhaps you spent years in private practice before moving into public service. In these cases, you might not have enough time to qualify for PSLF. With IDR forgiveness, you can still work towards loan cancellation over a longer period.

Key Eligibility Requirements

• Eligible Loan Types: Direct Loans, FFEL Loans, and Parent PLUS Loans can qualify. But, if you have Parent PLUS Loans, you’ll need to consolidate them into a Direct Consolidation Loan to become eligible for an IDR plan.
• Enrollment in an Income-Driven Repayment Plan: To work towards forgiveness, you must be enrolled in the SAVE (replacing REPAYE), PAYE (Pay As You Earn), IBR (Income-Based Repayment), or ICR (Income-Contingent RepaymentIncome-Contingent Repayment (ICR)The oldest federal income-driven repayment plan, with payments generally set at 20% of discretionary income or a fixed 12-year amount, whichever is lower. It is the only IDR plan available to Parent PLUS borrowers after consolidation.) plans.
• 20 to 25 Years of Payments: Forgiveness is available after making qualifying payments for 20 years if your loans were taken out for undergraduate studies or 25 years for graduate or Parent PLUS loans (once consolidated).

Related: Income-Driven Repayment for Student Loans – How it Works

State-Based Loan Forgiveness Programs

In addition to federal student aidFederal Student Aid (FSA)The office within the U.S. Department of Education that manages federal grants, work-study, and student loans. It runs the FAFSA, the StudentAid.gov website, and oversees the federal loan servicers. programs, some states offer loan forgiveness programs for mental health professionals and educators. While eligibility varies by state and specific licensure, it’s worth exploring what’s available where you live.

For example, Minnesota has a Rural Mental Health Professional Loan Forgiveness Program open to licensed mental health professionals, such as Licensed Professional Clinical Counselors (LPCCs) and Licensed Independent Clinical Social Workers (LICSWs). If you hold a relevant license, you might qualify for similar programs in your state.

Note: Check your state’s guidelines and your specific licensure to determine if you qualify for state-based financial aid programs.

Related: Student Loan Forgiveness Programs By State

Alternative Forgiveness Options

There are several other loan forgiveness programs available, though they may not be a perfect fit for school counselors. Here’s a quick overview of what’s out there:

• Teacher Loan ForgivenessTeacher Loan ForgivenessA federal program that can forgive up to $17,500 of Direct or FFELP loans for teachers who complete five consecutive years of full-time teaching at a low-income school or educational service agency.: This program is generally reserved for classroom teachers. While school counselors are vital to education, the current guidelines do not extend this forgiveness to their roles. If you’re in a hybrid role or teach classes in addition to counseling, it’s still worth exploring eligibility, but most school counselors won’t qualify under current rules.
• Disability Discharge: If you’re permanently disabled, you may be eligible for a total discharge of your federal student loans. This option applies across professions and is available for borrowers regardless of their loan servicerLoan ServicerThe company that manages a borrower's federal student loan account, processes payments, and handles applications for repayment plans, deferment, forbearance, and forgiveness on behalf of the U.S. Department of Education., as long as they meet the disability requirements.
• Borrower Defense to RepaymentBorrower Defense to RepaymentA federal process for discharging Direct Loans when the school misled the borrower or engaged in misconduct related to the loan or the educational services it promised.: Borrowers who attended schools that misled them or engaged in misconduct may qualify for loan discharge through Borrower Defense. While not specific to school counselors, this could be an option if you believe your school engaged in fraudulent practices.
• National Health Service Corps (NHSC) Loan Repayment Program: The NHSC program is typically designed for licensed health professionals, such as Licensed Professional Counselors (LPCs), Marriage and Family Therapists (MFTs), and others in similar roles. School counselors usually don’t fall under these licensure categories, so this program may not apply. But if your licensure overlaps, it’s worth looking into.

Note: If you’re a school counselor, programs like PSLF or income-driven repayment plans may offer more comprehensive relief, even if other options seem tempting. Check your specific licensure and employer status to find the best path forward.

Furthermore, if you’re unable to make payments, consider deferment and forbearance options with your loan servicer to avoid falling behind on your loan.

Related: How to Apply For Student Loan Forgiveness

Bottom Line

Working through student loan forgiveness as a school counselor can be challenging, but there are clear ways to reduce or eliminate your student loan debt. From Public Service Loan Forgiveness to income-driven repayment plans, options exist to fit different situations, whether you have federal loans or are considering loan repayment assistance programs.

If you’re still unsure which program is right for you, or if you want personalized guidance on how to maximize your repayment options, consider booking a consultation with one of our student loan experts.

We’ll help you understand your choices and create a plan that works for your situation so you can focus on what matters most—supporting your students.