There’s no loan forgiveness program for self-employed borrowers.
There are only loan forgiveness programs every other student loan borrower is eligible for:
income based repayment loan forgiveness after 20 to 25 years of loan repayment
Of the 3, the one I get asked the most about by far is the Public Service Loan Forgiveness program.
People want to know, “can I get PSLF loan forgiveness if I own my own nonprofit?”
My answer is, of course, you can. There’s no rule against you qualifying for loan forgiveness simply because you own the company. That’s not a requirement.
What is a requirement, however, is that you work full-time for a qualifying public service employer and that you receive a salary.
I’ve found that most people have trouble meeting the last requirement.
Their nonprofit isn’t earning enough money to pay them a legitimate salary.
But what if you are a borrower who is earning enough income?
In that case, just make sure you meet all the requirements to keep your nonprofit in good standing with the state and federal government. Do that, and keep making your qualifying payments under your repayment plan. After 120 months of payments, submit your application and wait to get your federal loans forgiven.