School Counselor Student Loan Forgiveness: Complete Guide 2024

• 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 Loan to be eligible.

• You may avail of a Disability Discharge or Borrower Defense if PSLF or IDR forgiveness isn’t applicable.

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

School counselors working in qualifying public service positions can have their federal student loans forgiven through the Public Service Loan Forgiveness (PSLF) Program after making 120 qualifying payments.

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 Repayment Plans count toward PSLF.

4. Employment Certification: Submit a PSLF Employment Certification Form. 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.

You can check your employer’s eligibility using the PSLF Help Tool on StudentAid.gov.

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

If you’ve looked into Public Service Loan Forgiveness and found out you don’t qualify, don’t worry—there are still options for getting your student loans forgiven.

Through an Income-Driven Repayment (IDR) Plan, you can have your remaining loan balance forgiven after making payments for 20 or 25 years, depending on your type of loan and level of education.

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 Repayment) 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

In addition to federal student aid 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

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 Forgiveness: 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 servicer, as long as they meet the disability requirements.

• Borrower Defense to Repayment: 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

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.