Social Worker Student Loan Forgiveness: How to Get It

Quick Facts

• PSLF is perfect for social workers in nonprofit or government jobs. You just need to be on an 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. plan and have Federal Direct Loans.
• Social workers can qualify for 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. even outside public service, as it’s open to all federal loan borrowers.
• State programs like Alaska SHARP and California’s Loan Repayment Program offer extra options for social workers in underserved areas.

Overview

If you are a social worker who supports at-risk children, families, individuals with disabilities, or anyone else in a social work role, you may qualify for student loan forgiveness.

Here’s what you need to know about the programs available to you:

1. 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.: Forgives your remaining federal loan balance after 120 qualifying payments while working full-time for a government or nonprofit employer.
2. Income-Driven Repayment Forgiveness: Adjust your monthly payments based on income and family size, with any remaining balance forgiven after 20–25 years.
3. Perkins LoanPerkins LoanA low-interest federal student loan for borrowers with exceptional financial need, issued by schools under a now-discontinued program. New Perkins Loans have not been made since 2017, but many existing balances are still in repayment. Cancellation: If you have old Perkins Loans, you could be eligible for a 100% loan cancellation based on your years of service.

PSLF offers the most forgiveness in the shortest time, but there’s a catch—you need to be employed directly by a qualifying employer to get the benefit. Read on to learn more about these options and how you can qualify.

Related: Community Service Student Loan Forgiveness

Student Loan Forgiveness Programs for Social Workers

1. Public Service Loan Forgiveness Program

PSLF forgives your remaining federal loan balance after 120 qualifying payments, which usually takes about 10 years, as long as you work for a qualifying employer like a government agency or nonprofit and are on an eligible repayment plan (such as IDR plans).

Here’s how it works for social workers:

• Employer: Many social work jobs qualify, including roles at government agencies or nonprofit organizations involved in community outreach or child welfare.
• Type of Loan: Only Federal Direct Loans qualify. If you have FFEL or Perkins Loans, you’ll need to consolidate them 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. first. Learn more in our Student Loan Consolidation Guide.
• Payment Plan: Income-driven repayment plans are your best bet. These plans keep payments affordable while you work toward forgiveness. They are based on your discretionary income.
• Commitment: You’ll need to make 120 qualifying monthly payments, typically over 10 years of full-time service.

2. Income-Driven Repayment Forgiveness

If you don’t qualify for the PSLF program, Income-driven repayment plans could be a great option for managing your student loans. These plans base your monthly payments on your income and family size instead of your total loan balance, making student loan repayment more affordable.

Here’s how it works for social workers:

• Who’s Eligible: IDR forgiveness is available to all federal loan borrowers, so whether you stay in public service or move into a private-sector role, you can benefit.
• Affordable Payments: Your monthly payments are capped at a percentage of your discretionary incomeDiscretionary IncomeFor federal income-driven repayment plans, a borrower's adjusted gross income minus a set percentage of the federal poverty guideline for their family size. Monthly IDR payments are calculated as a percentage of this amount. (your income after taxes and essential expenses), keeping them manageable even with modest social work salaries.
• Forgiveness Timeline: After 20 or 25 years of payments, depending on your plan (such as SAVE plan, Pay As You EarnPay As You Earn (PAYE)A federal income-driven repayment plan that caps monthly payments at 10% of discretionary income and forgives remaining debt after 20 years. It is only available to borrowers who took out their first federal loans on or after October 1, 2007. (PAYE), etc.) and loan type, any remaining balance is forgiven.

PSLF might be the faster option for many social workers, but IDR forgiveness is a solid alternative if you’re looking for flexibility or considering a career shift. It’s all about finding the plan that works best for you.

Related: Income-Based Repayment Forgiveness

3. Perkins Loan Cancellation

If you received a Perkins Loan before the program ended in 2017, you might qualify for up to 100% loan cancellation based on your years of eligible service.

Social workers helping people with disabilities, working as special education teachers, or in health care can qualify for this program.

Here’s the breakdown:

• 15% cancellation for the first and second years of service.
• 20% cancellation for the third and fourth years.
• 30% cancellation for the fifth year.

These percentages include both the loan amount and any interest added during each qualifying year of service, making this benefit even more valuable.

If you think you might qualify, it’s worth reaching out to your school’s financial aid office or your 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. for guidance. You may also visit the studentaid.gov to learn more about this program.

How Long Does It Take MOHELAMOHELAThe Missouri Higher Education Loan Authority, a federal student loan servicer that currently handles accounts for borrowers in Public Service Loan Forgiveness and other federal loan portfolios. to Process an Application for Forgiveness?

Once you’ve chosen your program, here’s what to know about how long it takes to forgive your federal student loan:

• Public Service Loan Forgiveness: MOHELA ( loan servicer that replaced FedLoan) usually acknowledges applications within 14 days. Processing typically takes about 90 business days, but it can range from 2–6 months, depending on the volume of applications and other factors.
• Income-Driven Repayment Forgiveness: Usually within 90 business days, but timelines vary based on complexity, with responses ranging from a few weeks to several months.

Note: MOHELA doesn’t handle Perkins Loan cancellations. You’ll need to reach out to the school that issued your loan or its designated provider. Processing times depend on the institution’s policies and can vary widely.

Related: How to Apply For Student Loan Forgiveness

Loan Forgiveness For Social Workers in Rural Areas

Depending on your location, you can also apply for other debt forgiveness programs and repayment options. Check your state’s loan repayment website or see if your state is listed below.

• National Health Service Corps Loan Repayment Programs: For those social workers specifically focusing on healthcare, the NHSC offers loan repayment programs up to $55,000. They have programs that target health professionals working in a high-need designated Health Professional Shortage Area and Substance Use Disorder Treatment in HPSAs. Learn more about the program.
• Indian Health Service (IHS): This program provides up to $40,000 for a two-year commitment to serving American Indian and Alaska Native communities. You can continue extending your service to receive additional loan repayment until your eligible loans are fully paid off. Learn more about the program.
• Alaska SHARP Program: Alaska offers licensed social workers helping underserved communities $20,000 to $27,000 a year for up to three years. Learn more about the program.
• California State Loan Repayment Program: California gives up to $50,000 a year if you commit to working full-time for two years or part-time for four years in underserved areas. You can renew your commitment for more awards, making it a great option for social workers in the state. Learn more about the program.
• Michigan State Repayment Program: Michigan offers up to $300,000 in tax-exempt money to repay federal and private student loanPrivate Student LoanA student loan issued by a bank, credit union, or other private lender rather than the federal government. Private loans generally lack federal protections like income-driven repayment and broad forgiveness programs. debt. To be eligible, you must have a master’s degree in social work and agree to provide full-time primary healthcare services in Health Professional Shortage Areas at not-for-profit health clinics for two years. Learn more about the program.
• Minnesota State Loan Repayment Program: Minnesota offers $20,000 yearly for a two-year full-time commitment. Learn more about the program.
• NY State Licensed Social Worker Loan Forgiveness Program: New York provides up to $26,000 in loan forgiveness for licensed clinical social workers in critical human services areas. The program will be open in July 2025. Learn more about the program.

Certain circumstances, like disability or school misrepresentation, may open up forgiveness options for you. Here’s an overview:

• Total and Permanent Disability DischargeTotal and Permanent Disability Discharge (TPD)A federal loan discharge for borrowers who are totally and permanently disabled, as documented by the Department of Veterans Affairs, the Social Security Administration, or a physician's certification.: If you become permanently disabled, you can have your federal loans discharged. You’ll need documentation from a physician, the VA, or Social Security Administration. Learn more in our TPD Discharge Guide.
• 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.: If your school closed while you were enrolled or misled you about job placement rates, program costs, or transfer credits, you may qualify for discharge. You’ll need to provide evidence of the school’s misconduct. Learn more in our Borrower Defense to Repayment Guide.

Related: State Programs For Student Loan Forgiveness

Eligibility Criteria At Glance

Program

Requirements

1. Public Service Loan Forgiveness

Work full-time for a government or nonprofit employer, have Federal Direct Loans, enroll in an income-driven repayment plan, and make 120 qualifying payments.

2. Income-Driven Repayment Forgiveness

Open to all federal loan borrowers, with payments based on income and family size. Remaining balances are forgiven after 20–25 years.

3. Perkins Loan Cancellation

Up to 100% cancellation for social workers in roles like special education or healthcare, based on incremental forgiveness over five years.

4. Total and Permanent Disability Discharge

Available to permanently disabled borrowers with documentation. Discharges all remaining federal student loans.

5. Borrower Defense to Repayment

For borrowers misled by schools on program details, with evidence required. Forgives remaining federal loan balances upon approval.

6. NY State Licensed Social Worker Loan Forgiveness Program

Offers up to $26,000 for licensed social workers in critical roles. Applications open in July 2025.

Options for Social Workers with Private Student Loans

If you’re dealing with private student loans, relief programs might not be an option as typically private servicers don’t offer them, but options like settlement or bankruptcy could still help.

• Settlement Options: If your student loan payments are unmanageable, negotiating a settlement with your lender could reduce your debt. This typically requires defaulting to open negotiations, which may negatively affect your credit score, so it’s often a last resort.
• Bankruptcy for Private Loans: Although it’s challenging, filing for bankruptcy may discharge private student loans if you can prove undue hardshipUndue HardshipThe legal standard a borrower must meet to discharge federal student loans in bankruptcy under 11 U.S.C. § 523(a)(8). Courts apply different tests, most commonly the Brunner Test or the Totality of the Circumstances Test.. This option is for extreme cases and requires demonstrating significant financial difficulties beyond normal repayment struggles.

If you’re unsure which option fits your situation, consider reaching out to a financial advisor or our student loan experts to explore your choices and find the best path forward.

Bottom Line

Social workers can now be stress-free, knowing they have options to manage the burden caused by student loans. You can apply for PSLF if you have full-time employment in nonprofit organizations, schools, or government roles. It offers tax-free forgiveness after 10 years of qualifying payments.

If PSLF isn’t a fit, other paths like IDR forgiveness or loan repayment programs in your state can provide much-needed relief. If you’re unsure which program is right for you, our student loan lawyers are here to help.

Schedule a consultation today to take the first step toward a clearer, more manageable financial future.

Related reading:

• Nonprofit Employee Student Loan Forgiveness
• Student Loan Forgiveness for Healthcare Workers
• Student Loan Forgiveness for Rural Medical Practitioners
• Student Loan Forgiveness for Mental Health Professionals
• Student Loan Forgiveness Programs For Teachers