Optometry Student Loan Forgiveness Options

• Optometrists who work full-time for a nonprofit or government employer like the VA qualify for the Public Service Loan Forgiveness Program.

• All other Doctor of Optometry graduates can get their loans forgiven after making 20 to 25 years’ worth of student loan payments based on their income.

• Private student loans don’t qualify for federal forgiveness programs. If you can afford payments, student loan refinancing may lower your interest rate. Otherwise, your options are negotiation or bankruptcy—both have risks.

Many optometrists graduate with massive debt, and unlike other healthcare professionals, most don’t qualify for the best repayment programs. PSLF is one of the few viable options for optometry student loan forgiveness, but it only works if you commit to a decade of nonprofit or government work.

Programs like the National Health Service Corps, which provide generous repayment benefits to other healthcare professionals, leave optometrists out entirely.

Here’s exactly how to cut down your student loan balance and get relief:

• PSLF: Work full-time for a qualifying employer to have your federal loans forgiven tax-free.

• State or Employer Repayment Programs: Some states and employers, like VSP Vision, offer repayment assistance—up to $200,000—for optometrists working in underserved areas.

• Income-Driven Repayment: Adjust your payments based on income, with forgiveness after 20–25 years (though it may be taxable).

The Biden administration’s IDR adjustment is making forgiveness easier by counting past payments that didn’t qualify before. If you’ve been in repayment for 20+ years, you might be closer to loan cancellation than you think.

PSLF is one of the best ways for optometrists to get loan forgiveness—if you work for a nonprofit or government employer, PSLF should be your topmost option. Here’s how you can make it happen:

1. Work for a Qualifying Employer

Most optometrists find PSLF eligibility through traditional full-time roles. To qualify:

• Full-Time Work: At least 30 hours per week at a nonprofit 501(c)(3) organization or government agency.

• Part-Time Work: Combine part-time hours from multiple qualifying employers to hit the 30-hour threshold.

For example, you could:

• Provide care at a nonprofit community health center.

• Teach at a nonprofit college or university with an optometry program.

• Work for the Department of Veterans Affairs or a similar government organization.

2. Starting a Nonprofit (Optional)

If staying independent is your goal, you can create your own 501(c)(3) nonprofit. While this involves extra steps, it allows you to keep control of your practice and qualify for PSLF:

• Form the nonprofit: Register with your state and pay filing fees.

• Get tax-exempt status: Apply with the IRS to gain 501(c)(3) recognition.

• Timeline and cost: The process can take 6–8 weeks and may cost $2,000–$3,000 if you hire legal help, though many handle it solo.

Next Steps

1. Confirm Your Loans: PSLF applies only to Direct Loans. If you have other federal loans, consolidate them into a Direct Consolidation Loan. Fair warning: consolidation restarts your PSLF payment count, so check with your loan servicer before making a move.

2. Check Your Employer: Use the PSLF Help Tool on StudentAid.gov to confirm your employer qualifies.

3. Track Your Progress: Submit the Employment Certification Form (ECF) yearly or whenever you switch jobs to ensure your payments count toward PSLF.

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

If you’re not working for a nonprofit, IDR is your second-best choice for loan forgiveness or debt relief. It’s a great option for optometrists juggling high debt-to-income ratios or running their own practice.

IDR plans set your payment based on how much discretionary income you have (what’s left after covering basic living expenses). Stick with it for 20–25 years, and whatever’s left on your balance is forgiven. (Heads up: you may owe taxes on the forgiven amount.)

Key IDR Plans

1. SAVE Plan: The lowest payment option, capping payments at 5–10% of discretionary income. Currently on hold due to legal battles.

2. PAYE and IBR: Payments capped at 10–15% of discretionary income. PAYE is usually better for newer borrowers, while Income-Based Repayment works for older loans. Both require demonstrating partial financial hardship.

3. ICR: The highest payment option, based on 20% of your discretionary income or the amount you’d pay on a 12-year fixed plan—whichever is less. Typically, it’s a last resort.

Related: IBR Loan Forgivenes

The One-Time Account Adjustment

Recent changes under the Biden administration mean borrowers can get credit for:

• Past payments under any repayment plan.

• Certain periods of deferment or forbearance (even if you didn’t make payments).

This adjustment could push you closer to forgiveness. Borrowers with 20+ years of repayment history may qualify for immediate forgiveness. The Department of Education plans to complete these adjustments by January 2025.

Related: When Will IDR Adjustments Be Made?

Next Steps:

• Check Your Progress: Log in to StudentAid.gov or call your loan servicer to review your qualifying payments.

• Estimate the Impact: Use an IDR Account Adjustment Calculator to see how this change might affect your timeline.

Why Choose IDR Forgiveness?

IDR doesn’t require you to work for a nonprofit or government employer, making it ideal for optometrists in private practice. With flexible payments and a one-time adjustment, the IDR path is a practical course to eliminate federal student debt without changing your career.

Final Steps

1. Know Your Loans: Confirm your loans are Direct Loans and review your payment history on StudentAid.gov.

2. Pick the Right Plan: Use the Loan Simulator or SAVE Plan Calculator to find the best repayment option for your situation.

3. Apply or Switch Plans: If you’re not on an IDR plan yet, apply now so you’re making progress toward forgiveness.

Optometrists aren’t eligible for federal loan repayment programs like the National Health Service Corps (NHSC). Still, there are alternatives to explore.

State-based loan repayment programs and employer-sponsored initiatives can provide significant relief if you’re willing to practice in underserved areas or commit to specific employers.

• State Programs: Some states, like Maryland, offer repayment assistance for healthcare professionals, including optometrists, working in rural or high-need areas. Check with your state’s health department for details.

• Employer-Sponsored Programs: Organizations like VSP Vision offer up to $200,000 in repayment for optometrists who serve in high-need communities. Others, like MyEyeDr and National Vision, provide structured repayment assistance as part of their benefits packages.

These programs often have specific commitments, such as working in underserved regions for a set period. Read this article for more information about this forgiveness program: Student Loan Forgiveness for Rural Medical Practitioners.

If you’re open to relocation or strategic employment choices, loan repayment programs can help you tackle your debt faster while making a difference in communities that need your expertise.

Related: Student Loan Forgiveness for Healthcare Workers

PSLF is always tax-free—no surprise bills, ever. But IDR forgiveness could be taxed as income starting in 2026 if the current tax exemption expires. Here’s how to protect yourself:

• Save in Advance: Set aside extra funds in a high-yield account to cover a potential tax bill.

• Know the Insolvency Rule: If your debts outweigh your assets, the IRS may allow you to exclude the forgiven amount from taxable income.

• Consult a Tax Pro: Work with a professional to create a long-term plan and prepare for possible tax implications.

Tax laws can change, so staying informed and building a buffer now can save you headaches later.

Related: SAVE Plan Tax Bomb: What Borrowers Need to Know

Private loans don’t come with the forgiveness perks federal loans have, but you still have options if your monthly payments feel unmanageable. Here are three strategies to consider:

• Refinancing: If you have a strong credit score and stable income, refinancing can lower your interest rate or extend your repayment term, reducing monthly payments. Refinancing federal loans with a private lender means giving up protections like forgiveness and income-driven plans.

• Settlement: Struggling to keep up with payments? You might be able to negotiate a student loan settlement for less than you owe. This could involve a lump sum or structured installments over a few years. Lenders are more likely to agree if they think it’s their best chance of getting paid.

• Bankruptcy as Leverage: Discharging private loans through bankruptcy is tough. But you can still use the process to push lenders to negotiate. They may lower your interest rate, loan balance, and monthly payments to avoid a complete loss.

Private loans demand creative solutions, but with the right approach, you can lighten the financial load and regain control.

Related: Private Student Loan Forgiveness Options

You’ve dedicated years to improving people’s vision and overall quality of life, but managing student loan debt can still feel overwhelming. Optometrists face unique challenges, like limited access to specialized repayment programs offered to other healthcare professionals.

The good news? You’re not out of solutions.

The best path depends on your job. If you work for a nonprofit, PSLF is your fastest route. If not, IDR forgiveness or a state repayment program may be better. The right plan can align with your financial goals and let you focus on your patients—not your debt.

Book a call with a student loan expert today.

Related reading:

• • Medical Student Loan Forgiveness Options For Doctors In All Specialties

  • How to Apply For Student Loan Forgiveness

  • Student Loan Forgiveness Lawsuit Updates