September 22, 2021

What Is the Student Loan Forgiveness Act Of 2012?


The Student Loan Forgiveness Act of 2012 offers student loan forgiveness to those in public service. That means if you work in a public sector job and have federal student loans, you could qualify for student debt relief.

What is the Student Loan Forgiveness Act of 2012?

Also known as H.R.4170, the Student Loan Forgiveness Act of 2012 makes it easier for student loan borrowers to get rid of their student loans when they meet specific criteria. It includes working in an eligible field or teaching at a school that serves students from low-income families, working full time at a public or nonprofit child care organization, or serving in the Peace Corps.

Who Qualifies for Student Loan Forgiveness?

The student loan forgiveness act of 2021 benefits teachers, police officers, nurses, and other public service employees.

This act was created to cut through the red tape that caused many dedicated professionals to abandon their careers to avoid overwhelming student debt.

How To Qualify for Student Loan Forgiveness

To qualify for student loan forgiveness under this act, you must be enrolled at an eligible school, maintain enrollment in the program of study associated with your student loans. Also, certain obligations like making 120 student loan payments while maintaining a specific employment type need to be met to qualify for student loan forgiveness under this act.

The Pros and Cons

If you are a student who took out loans before your first job, it is crucial to understand how student loan forgiveness might impact you under this law.

There are many pros and cons to the student loan forgiveness act, so you must know precisely what this legislation does for people with student loans before you decide if it will work for your situation or not.


  1. The Student Loan Forgiveness Act of 2012 will forgive up to $17,500 in federal student loans for those who have worked 10 years and make 120 on-time payments.
  2. This Act is only available to those with Direct Loans, Stafford Loans, or Federal Perkins Loans.
  3. If you qualify for this forgiveness program, then the remaining balance of your loan will be forgiven after 10 years and 120 monthly payments.
  4. You can still get a tax deduction if you're paying off your loans through an income-driven repayment plan.


  1. The Student Loan Forgiveness Act of 2012 will not apply to loans taken out before 2007.
  2. If you are in default on your student loans, the act does not apply to you.
  3. You have to work for a qualifying employer for 10 years to qualify for loan forgiveness.
  4. If you are married, only one spouse can benefit from the act at any given time.


The Student Loan Forgiveness Act of 2012 is an excellent opportunity for students and graduates to lessen debt. If you think that the new act could help your situation, we recommend looking into it as soon as possible. There are pros and cons with this law, but if you qualify for forgiveness, then there's nothing to lose.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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