Loan Forgiveness for Teachers in 2026: The 4 Federal Programs (Teacher Loan Forgiveness Up to $17,500, Public Service Loan Forgiveness, Perkins Loan Teacher Cancellation, TEACH Grant Service Conversion), the TEACH Grant Conversion Trap, State Programs (Colorado Ending 2026-27, Texas TLRA $7,000/yr), and the FDCPA Validation + Settlement Path That Cuts Private Teaching Debt Up to 50%

Informational content only. Not legal advice. Private Student Relief is a consulting organization, not a law firm. Individual results vary by lender, loan terms, and circumstances. Last reviewed: May 2026.

US teachers have access to four federal student loan forgiveness or cancellation programs — Teacher Loan Forgiveness (TLF, up to $17,500 for special education and secondary math/science teachers, $5,000 for other qualifying teachers after 5 consecutive years at low-income schools), Public Service Loan Forgiveness (PSLF, federal Direct Loan forgiveness after 120 qualifying payments at qualifying public service employers including most public schools), Perkins Loan Cancellation for Teachers (up to 100% of legacy Federal Perkins Loans), and TEACH Grant Service Conversion (which, if the 4-year teaching commitment isn’t completed within 8 years, converts the grant to a Direct Unsubsidized Loan with interest accrued retroactively). Plus state programs that vary dramatically — Colorado’s Educator Loan Forgiveness ($5,000/year, scheduled to end with 2026-27 final cycle), Texas’s TLRA ($7,000/year for critical shortage fields, updated from $2,500 for 2025-26), and similar programs in Wisconsin, Minnesota, and dozens of other states. None of these programs covers private student loans. Every one is limited to specific federal loan types. The TEACH Grant in particular has historically converted to debt for over half of recipients — meaning what was originally relief becomes additional federal student loan burden. For teachers with private student loan debt — and for federal teachers whose forgiveness amounts don’t cover their full balance, whose schools don’t qualify for TLF, whose TEACH Grants converted to loans, or who don’t meet PSLF’s 120-payment threshold — the path runs through the same framework that applies to any private student loan borrower: FDCPA validation under 15 U.S.C. § 1692g, hardship settlement, FTC Holder Rule claims where applicable, and the broader Private Student Loans Forgiveness alternatives framework that cuts private teaching debt up to 50%.

Which Federal Loan Forgiveness Programs Cover US Teachers in 2026?

US teachers have access to four federal student loan forgiveness or cancellation programs administered by the U.S. Department of Education and accessible directly through StudentAid.gov. Each program serves a different segment of the teaching workforce, covers different federal loan types, and has different eligibility requirements. Understanding all four is the foundation of strategic loan planning for any US teacher with significant student debt — and the structural reality is that all four exclude private loans entirely.

1. Teacher Loan Forgiveness (TLF). TLF forgives up to $17,500 of Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, and Unsubsidized Federal Stafford Loans after five complete and consecutive academic years of teaching at a qualifying low-income school. The $17,500 maximum applies to highly qualified full-time special education teachers and secondary math or science teachers. Other qualifying teachers receive up to $5,000. Direct PLUS Loans, FFEL PLUS Loans, and Federal Perkins Loans are not eligible for TLF. To qualify, the teacher must have been employed as a highly qualified full-time teacher at an eligible school for five complete and consecutive academic years, with at least one of those years after the 1997-98 academic year, and must have been a new borrower on or after October 1, 1998. Time spent teaching for AmeriCorps benefits or counted toward PSLF/TEPSLF does not count toward TLF’s required five years. The application is submitted after completing the five-year teaching requirement, and TLF forgiveness is federally tax-free under longstanding IRS rules.

The TCLI Directory. The Teacher Cancellation Low Income (TCLI) Directory, maintained by the U.S. Department of Education, lists schools eligible for TLF, TEACH Grant service, and Perkins Loan Teacher Cancellation. To be included, an elementary school, secondary school, or educational service agency must be in a school district that qualifies for funds under Title I of the Elementary and Secondary Education Act, and the campus enrollment of economically disadvantaged students must be greater than 30%. The directory is updated annually, meaning a school’s eligibility can change from year to year. Teachers planning to qualify for TLF should verify their school’s TCLI status at the start of each academic year. The directory is searchable by state at StudentAid.gov.

2. Public Service Loan Forgiveness (PSLF). PSLF — codified at Higher Education Act Section 455(m), 20 U.S.C. § 1087e(m) — forgives remaining federal Direct Loan balances after 120 qualifying monthly payments while employed full-time at a qualifying public service employer. For teachers, qualifying employers include nearly all public schools (federal, state, local, or tribal government schools), most 501(c)(3) nonprofit private schools and charter schools, and qualifying educational service agencies. Unlike TLF, PSLF does not require teaching at a low-income school — the qualifying-employer test is broader. PSLF requires enrollment in a qualifying repayment plan (currently IBR for legacy borrowers, with the new Repayment Assistance Plan under OBBBA effective July 1, 2026 also qualifying). PSLF is permanently federally tax-free. As of January 2026, approximately 1,410,000 federal borrowers have qualified for PSLF, with an average $78,300 discharged per borrower. PSLF covers Direct Loans only — FFEL and Perkins Loans qualify only after consolidation into a Direct Consolidation Loan.

3. Perkins Loan Teacher Cancellation. For teachers who borrowed Federal Perkins Loans before the program ended September 30, 2017, Perkins Loan Teacher Cancellation forgives up to 100% of the Perkins balance through teaching service. Cancellation is incremental: 15% canceled per year for the first and second years of service, 20% for the third and fourth years, and 30% for the fifth year — totaling 100% over 5 years. Each year’s cancellation amount includes interest accrued during that year. Eligible teachers must serve full-time at a low-income school or teach in shortage subjects (mathematics, science, foreign languages, bilingual education, special education, or other state-determined shortage fields). Because the Perkins Loan Program ended September 30, 2017 with no new loans since, this program applies only to legacy Perkins borrowers who still have outstanding Perkins balances. Apply directly with the school or institution that issued your Perkins Loan.

4. TEACH Grant Service Conversion. The Teacher Education Assistance for College and Higher Education (TEACH) Grant provides up to $4,000 per year (reduced approximately 5.7% by federal sequestration for grants first disbursed on or after October 1, 2020 through October 1, 2026) to students completing or planning to complete coursework needed to begin a career in teaching. The catch: if the recipient does not complete four years of full-time teaching in a high-need field at a low-income school within eight years of ceasing enrollment, the entire grant converts to a Direct Unsubsidized Loan with interest accrued retroactively from the original disbursement date. The conversion is the source of substantial consumer harm — the program’s structure has historically resulted in conversion to debt for a substantial portion of recipients due to documentation issues, certification problems, eligible field transitions, employment gaps, and TCLI school status changes. Recipients of unfulfilled TEACH Grants who received conversion notices have specific reconsideration paths through StudentAid.gov; the conversion itself is generally treated as a federal student loan from that point forward.

How Does the TEACH Grant Convert to a Loan — and Why Has Half of Recipients Converted?

The TEACH Grant has become one of the most consumer-harmful programs in the federal student loan system — not because the program is inherently fraudulent, but because the structural conversion mechanism turns relief into debt for a substantial portion of recipients. The mechanism is straightforward: a TEACH Grant is awarded with a service obligation; if the obligation is not completed within the timeframe, the grant converts to a Direct Unsubsidized Loan with interest accrued retroactively. Understanding how the conversion works and how to challenge it is essential for any teacher who received TEACH Grants or whose grants have already converted.

The service obligation. TEACH Grant recipients agree to complete four complete academic years of full-time teaching in a high-need field at a low-income school listed in the TCLI Directory, within eight years of ceasing enrollment at the institution where the grant was received. High-need fields are defined by the U.S. Department of Education and have included bilingual education and English language acquisition, foreign language, mathematics, reading specialist, science, and special education, among other state-designated shortage fields. The 8-year window means recipients have flexibility to time their service — but also means missed years cannot be made up after the window closes.

The conversion mechanism. If the service obligation is not fulfilled within 8 years, the entire TEACH Grant — every dollar received — converts to a Direct Unsubsidized Loan. The interest is calculated retroactively from the original disbursement date, meaning a grant disbursed in 2020 that converts in 2028 accumulates 8 years of compound interest in addition to the principal. A recipient who received $16,000 in TEACH Grants ($4,000/year × 4 years) and fails to fulfill the service obligation may face a converted debt substantially higher than $16,000 once retroactive interest is added. The Direct Unsubsidized Loan then operates under standard federal loan terms — but is now subject to repayment rather than service forgiveness. Because the conversion creates a federal Direct Loan, the converted balance becomes eligible for PSLF and IDR forgiveness paths if the recipient meets those criteria — but that’s a different framework than the original TEACH Grant promise.

Why so many TEACH Grants have converted. The historical conversion rate has been documented as substantial — over half of TEACH Grant recipients have had grants convert to loans at some point, per various government and advocacy sources. Common causes include: documentation failures (annual certification requirements not met), TCLI school status changes (school that qualified when teaching began no longer qualifies), eligible field transitions (teacher moves from special education to general education classroom), employment gaps (parental leave, military deployment, illness), and procedural issues (servicer errors in tracking service). Some conversions are unavoidable — recipients who legitimately leave teaching for personal reasons — but others reflect administrative or procedural failures that may be reversible through reconsideration.

TEACH Grant reconsideration. The U.S. Department of Education offers a reconsideration process for recipients whose TEACH Grants converted to Direct Unsubsidized Loans. The process generally requires submitting documentation of the service performed, any TCLI school status issues, employment records, and the circumstances around the conversion. Reconsideration can result in re-converting the loan back to a grant if the recipient can demonstrate that the conversion was inappropriate or that the service obligation has actually been met. Application is through your loan servicer and StudentAid.gov. The reconsideration process is complex; some teachers benefit from consumer-protection attorney assistance for disputed cases.

Which Teachers Still Face the Private Loan Gap Even With All 4 Federal Programs?

Despite four federal programs, the structural reality is that the majority of US teachers with substantial student loan debt do not receive federal coverage for that full debt. The reasons are cumulative: each federal program has eligibility restrictions, and overlapping restrictions exclude many teachers from any one program for all or part of their debt. Understanding which teachers fall into the gap — and why — is the foundation of strategic planning.

Teachers at non-TCLI schools. TLF requires service at a designated low-income school listed in the TCLI Directory. Perkins Loan Teacher Cancellation also requires service at a low-income school for the standard pathway (with the exception of shortage-subject teaching). Many US teachers work at schools that do not qualify as low-income under federal definitions — they may serve diverse student populations, but if the Title I status and 30%+ economically disadvantaged threshold are not met, the school is not on the TCLI list. For these teachers, TLF and Perkins Teacher Cancellation do not apply. PSLF may still apply if the school is a qualifying public service employer (most public schools qualify), but the loan forgiveness amounts are different and depend on the 10-year service horizon.

Teachers with debt above TLF maximums. The TLF maximum is $17,500 for highly qualified special education or secondary math/science teachers and $5,000 for other teachers. Average teacher student loan debt at graduation has frequently been documented in the $30,000-$40,000 range, with many teachers borrowing substantially more for master’s degrees or specialized credentials. A $17,500 TLF benefit on $40,000 of debt covers less than half. A $5,000 TLF benefit on $40,000 covers about 12.5%. Even successful TLF participation leaves many teachers with substantial remaining debt — federal and private — that requires different relief paths.

Teachers whose TEACH Grants converted. Teachers who received TEACH Grants and had them convert to Direct Unsubsidized Loans now face that converted debt on top of any other federal or private debt. While the converted loan becomes eligible for PSLF and IDR forgiveness paths, the original grant promise has been broken — and the teacher now manages the debt rather than benefiting from the grant.

Teachers with private student loans. The most explicit gap is private student loans, which are statutorily excluded from all four federal teacher programs. Teachers who borrowed private loans for undergraduate education, master’s degrees, principal certifications, doctoral programs, or specialized training — alongside or instead of federal loans — receive no federal coverage for that private debt regardless of where they teach or how long they serve. The 2026 OBBBA changes (Grad PLUS elimination, $20,500 annual / $100,000 aggregate graduate borrowing caps) are projected to push more teachers pursuing advanced degrees into private loan reliance, while federal coverage for graduate education becomes more limited.

Teachers at private religious schools without 501(c)(3) status. PSLF requires qualifying employer status — government employers or 501(c)(3) nonprofit organizations. Many private religious schools, parochial schools, and other private school employers do not meet the 501(c)(3) test required for PSLF. Teachers at these schools may still qualify for TLF if at a TCLI school (rare for private schools), but otherwise have limited federal program options for their federal loans. The new October 31, 2025 final rule under 34 C.F.R. § 685.219 (effective July 1, 2026) further narrows PSLF qualifying employer eligibility — three federal lawsuits challenge the rule.

What State Teacher Loan Forgiveness Programs Exist — and What Do They Cover?

Many US states operate teacher-specific loan forgiveness or loan repayment assistance programs as complements to the federal framework. State programs vary dramatically in funding levels, eligibility, service commitments, and continuation. Some are well-funded permanent programs; others are temporary initiatives subject to state budget cycles. Most focus on federal loans, with limited private loan coverage. Verifying current state program details through your state’s department of education or higher education agency is essential — programs change frequently.

Colorado Educator Loan Forgiveness Program. Colorado’s program provides up to $5,000 per year in loan forgiveness for qualifying educators. The 2026-27 cycle is scheduled to be the final year of the program; the 2026-27 application opens March 1, 2026 through April 15, 2026. Not every applicant who applies receives an award due to limited funds. Earlier expansion through HB23-1001 added a Temporary Educator Loan Forgiveness Program that has since closed. Former Temporary program participants may apply to the main Colorado Educator Loan Forgiveness Program. The Colorado Center for Rural Education also provides stipends to student teachers and in-service educators in rural Colorado, and the state operates the Educator Recruitment and Retention Program (RALS) providing up to $6,000 for alternative-licensure participants in rural districts.

Texas Teach for Texas Loan Repayment Assistance Program (TLRA). Texas operates the TLRA program for certified classroom teachers in shortage fields and communities. Updated for the 2025-2026 cycle, the maximum annual assistance amount is now $7,000 (previously $2,500) — a substantial increase. Teachers may be eligible for loan repayment assistance for a maximum of five years. The next application period opens spring 2026. Designated critical shortage fields for 2024-2025 included bilingual/English as a Second Language (Grades PK-12) among others; critical shortage fields are reviewed annually and may change. Texas also offers the federal Teacher Loan Forgiveness Program through the Teacher Cancellation Low Income (TCLI) Directory administered by the Texas Education Agency.

Wisconsin and Minnesota programs. Wisconsin’s Department of Public Instruction administers federal TLF eligibility verification and connects teachers to information about cancellation programs. Minnesota’s Department of Education administers federal TLF and TEACH Grant certification verification for educators in Minnesota schools listed on the TCLI Directory. Many other states operate similar programs — Illinois, Massachusetts, Maryland, New York, Washington, and Oregon among them — though funding and structure vary.

State programs and private loans. Most state teacher loan forgiveness programs focus on federal loans, with limited or no private loan coverage. Where state programs accept private loans, eligibility is typically narrow — specific loan types tied to teaching education, specific service obligations, smaller award amounts, and competitive selection. Some states offer state-level UDAP protections that complement federal consumer protections for private teaching loans tied to schools that engaged in misconduct, but these are remedies, not forgiveness programs.

What Actually Works for Teachers with Private Student Loan Debt?

For US teachers with private student loan debt outside federal program coverage — which describes the vast majority of teachers with substantial private debt — the relief framework is identical to the framework that applies to any private student loan borrower. The fact that you are a teacher does not change the underlying legal mechanisms available, because no federal teacher-specific program covers private loans. The framework runs through four established mechanisms operating under existing federal consumer-protection law.

FDCPA validation under 15 U.S.C. § 1692g. When private teaching student loans have been transferred to a third-party debt collector — common for older or delinquent loans — the Fair Debt Collection Practices Act gives the borrower the federal statutory right to demand validation. The collector must produce the original signed promissory note, complete payment history, and chain-of-ownership documentation. The CFPB’s Regulation F (12 C.F.R. § 1006) implements the statute. Older teacher loans transferred multiple times often have documentation gaps that cannot satisfy validation requirements — producing settlement at 30-50% of balance or practical unenforceability.

Hardship settlement. Settlement is a negotiated agreement with the lender or current loan holder to resolve the loan for less than the full balance. For teachers with documented financial hardship — and teaching salaries combined with substantial debt loads frequently produce documented hardship even when income exceeds federal poverty thresholds — settlement at 30-50% of private balance is commonly achieved. Settlement positioning is strengthened by FDCPA validation results, by approaching state statute of limitations, by documented school misconduct claims if applicable, and by the broader leverage that comes from documented inability to pay full balance.

FTC Holder Rule claims (16 C.F.R. § 433.2). For private teaching loans tied to schools that engaged in misconduct or closed, the FTC Holder Rule preserves the borrower’s right to assert school-related claims and defenses against the loan holder. Many for-profit teaching colleges and graduate education programs have been the subject of state attorney general investigations, accreditation problems, federal Borrower Defense to Repayment findings, or outright closure — all of which can support Holder Rule claims against the private loans tied to attendance. Teachers who attended programs at schools later determined to have engaged in misconduct have particularly strong Holder Rule positioning.

State statute of limitations. Most US states have statutes of limitations on written contracts ranging from 3 to 15 years, with 3-6 years most common. When the SOL expires on a private teaching student loan, the debt becomes “time-barred” — the lender or collector cannot sue to collect through court process. Combined with FDCPA validation and settlement, SOL analysis provides time-based leverage that can produce practical resolution similar to what borrowers imagine “long-term forgiveness” would deliver. Verification with a state-licensed attorney is essential before relying on time-barred status; reset triggers (any payment, written acknowledgment) can restart the clock unexpectedly.

Lender-specific death and disability discharge programs. Five private lenders are commonly recognized as offering voluntary total and permanent disability discharge as a contractual benefit: Sallie Mae Smart Option, Discover (legacy portfolio), Laurel Road, Wells Fargo legacy portfolio, and New York Higher Education Services Corporation. For death discharge, voluntary programs exist at Sallie Mae Smart Option, Discover legacy, Wells Fargo legacy, and Navient (varies by contract). Teachers with private loans at these specific lenders who experience total permanent disability or death may have contractual paths to cancellation beyond the federal programs.

Forgiveness for Teachers in 2026: Key Facts

US teachers have four federal student loan forgiveness programs in 2026, administered by the U.S. Department of Education through StudentAid.gov. Teacher Loan Forgiveness (TLF) — up to $17,500 for highly qualified full-time special education teachers and secondary math/science teachers, up to $5,000 for other qualifying teachers, after five complete and consecutive academic years at a designated low-income school in the TCLI Directory; covers Direct Subsidized/Unsubsidized Loans and Subsidized/Unsubsidized Federal Stafford Loans; Direct PLUS Loans, FFEL PLUS Loans, and Federal Perkins Loans are not eligible. Public Service Loan Forgiveness (PSLF) — codified at HEA Section 455(m), 20 U.S.C. § 1087e(m); federal Direct Loan forgiveness after 120 qualifying payments at qualifying public service employers including most public schools and 501(c)(3) nonprofit schools; approximately 1,410,000 borrowers qualified as of January 2026 with average $78,300 discharged. Perkins Loan Teacher Cancellation — up to 100% of legacy Federal Perkins Loans (program ended September 30, 2017) for teachers at low-income schools or in shortage subjects; cancellation is incremental (15% years 1-2, 20% years 3-4, 30% year 5). TEACH Grant Service Conversion — grants up to $4,000 per year (reduced approximately 5.7% by federal sequestration through October 1, 2026) require 4 complete years of full-time teaching in a high-need field at a low-income school within 8 years; unfulfilled obligations result in grant conversion to Direct Unsubsidized Loan with retroactive interest accrual.

All four federal teacher programs exclude private student loans; many teachers fall into coverage gaps even for federal loans. Teachers at non-TCLI schools (schools not designated low-income based on Title I qualification and 30%+ economically disadvantaged enrollment) are excluded from TLF and Perkins Teacher Cancellation. Teachers with substantial debt above the TLF maximums ($17,500 or $5,000) receive only partial coverage. TEACH Grant recipients whose service obligations were not fulfilled within the 8-year window have grants converted to Direct Unsubsidized Loans with retroactive interest, creating new federal debt rather than relief. Teachers at private religious schools without 501(c)(3) status, charter schools without qualifying status, or for-profit schools cannot use PSLF for their federal loans. The October 31, 2025 final rule under 34 C.F.R. § 685.219 (effective July 1, 2026) further narrows PSLF qualifying employer eligibility — three federal lawsuits challenge the rule. The 2026 OBBBA changes (Grad PLUS elimination, $20,500 annual / $100,000 aggregate graduate borrowing caps) push more teachers pursuing master’s, principal, and doctoral degrees into private loan reliance, while reducing federal coverage for graduate education. State programs vary dramatically — Colorado Educator Loan Forgiveness ($5,000/year, ending 2026-27), Texas TLRA ($7,000/year for shortage fields, updated 2025-26), Wisconsin and Minnesota TCLI verification programs, and others — but typically focus on federal loans with limited private coverage.

For US teachers with private student loan debt outside federal program coverage, the relief framework is identical to the framework that applies to any private student loan borrower. FDCPA validation under 15 U.S.C. § 1692g forces third-party collectors to produce the original signed promissory note, complete payment history, and chain-of-ownership documentation; older transferred teacher loans frequently fail validation, producing settlement at 30-50% of balance or practical unenforceability. Hardship settlement is a negotiated agreement with the lender or current holder to resolve balance for less than full — typically 30-50% with documented hardship; teaching salaries combined with substantial debt loads frequently produce documented hardship even when income exceeds federal poverty thresholds. FTC Holder Rule claims under 16 C.F.R. § 433.2 apply to private loans tied to teaching programs that engaged in misconduct or closed — particularly relevant given documented for-profit teaching college accreditation problems and closures. State statute of limitations analysis (3-15 years depending on state) can render older private teaching debt time-barred. Lender-specific death and TPD discharge programs apply to private loans at the 5 specific lenders (Sallie Mae Smart Option, Discover, Laurel Road, Wells Fargo legacy, NYHESC). The strongest outcomes combine these mechanisms with federal program access where eligible — pursuing PSLF/TLF/Perkins Cancellation for federal loans while addressing private debt through the consumer-protection framework. A free case review identifies which federal programs you may qualify for and addresses the private debt that remains.

Frequently Asked Questions for Teachers About Loan Forgiveness

US teachers have four federal student loan forgiveness programs — TLF, PSLF, Perkins Cancellation, TEACH Grant. The first three deliver substantial relief for federal loans when teachers meet eligibility. The TEACH Grant has structural conversion mechanics that have turned grants into debt for a substantial portion of recipients, often inappropriately. None of the four programs covers private loans. State programs (Colorado, Texas, Wisconsin, Minnesota, others) complement but do not replace the federal framework, and typically focus on federal loans. For US teachers whose private loans fall outside federal coverage — and for federal teachers in coverage gaps — the relief framework is identical to the framework that applies to any private student loan borrower. FDCPA validation, hardship settlement, Holder Rule claims, state SOL analysis, lender-specific discharge — the real Private Student Loans Forgiveness alternatives that operate under existing federal consumer-protection law. A free case review identifies which federal programs apply and addresses the private debt that remains.

Disclaimer: Informational content only. Not legal, tax, or financial advice. Henry Silva is a debt specialist, not a licensed attorney, tax professional, or financial advisor. Private Student Relief is owned and operated by Joco and is a private student loan payment relief consulting organization — not a law firm, debt settlement company, debt consolidation company, loan provider, or U.S. Department of Education representative. We do not assume consumer debt, make payments to creditors on your behalf, process federal applications including TLF, PSLF, Perkins Loan Cancellation, or TEACH Grant Service applications. We help clients reduce their private student loan payments by matching them with a vetted partner provider that performs FDCPA-compliant debt validation, hardship negotiation, or consolidation strategies under independent business credentials. Ratings, BBB accreditation, and industry tenure referenced belong to our partner provider. Individual results vary based on financial circumstances. Not available in South Carolina or Mississippi. Federal teacher loan forgiveness program rules (Teacher Loan Forgiveness Program; Public Service Loan Forgiveness codified at HEA Section 455(m) / 20 U.S.C. § 1087e(m) and implementing regulations at 34 C.F.R. § 685.219 and § 685.222; Perkins Loan Teacher Cancellation; TEACH Grant Service Obligation), eligibility criteria including the Teacher Cancellation Low Income (TCLI) Directory administered by the U.S. Department of Education, application processes, service commitments, award amounts, and tax treatment are governed by federal law administered by the U.S. Department of Education; verify current requirements at StudentAid.gov. The Federal Perkins Loan Program ended September 30, 2017 with no new loans since; existing Perkins balances remain eligible for cancellation programs. TEACH Grant federal sequestration reduces grants disbursed on or after October 1, 2020 through October 1, 2026 by approximately 5.7%. State teacher loan forgiveness programs (Colorado Educator Loan Forgiveness Program scheduled to end 2026-27; Texas Loan Repayment Assistance for Teachers updated to $7,000/year maximum for 2025-26; Wisconsin Department of Public Instruction administration; Minnesota Department of Education administration; other state programs) vary by state, have separate eligibility rules, and may change with state budgets — verify current requirements with your state department of education. Statutory references (FDCPA 15 U.S.C. § 1692g; CFPB Regulation F 12 C.F.R. § 1006; FTC Holder Rule 16 C.F.R. § 433.2; Higher Education Act Section 455(m); 34 C.F.R. § 685.222 Borrower Defense to Repayment; 34 C.F.R. § 685.219 PSLF; Title I of the Elementary and Secondary Education Act) are summarized for educational purposes; consult licensed consumer protection professionals for case-specific advice. OBBBA changes effective July 1, 2026 (Grad PLUS elimination, $20,500 annual / $100,000 aggregate graduate borrowing caps, RAP launch, SAVE vacatur, Parent PLUS June 30, 2026 consolidation deadline, new 34 C.F.R. § 685.219 employer eligibility rule) reflect publicly available information at last review; three federal lawsuits challenge the new employer rule. PSLF statistics (approximately 1,410,000 borrowers qualified, average $78,300 discharged) reflect publicly available data as of January 2026. Last reviewed: May 2026.