Don't Wait Around for Student Loan Forgiveness: Find an Employer That Makes Monthly Payments Toward Your Student Loans¹,²

Maybe your student loan plan fits in four words: “forgiveness will happen eventually.”

Forgiveness can be worth pursuing. But that’s a lot of weight to put on a date years away, under rules that may change along the way.

Public Service Loan Forgiveness takes ten years of qualifying payments. Income-driven forgiveness takes twenty to thirty. In recent years, repayment plans have been created, challenged in court, and ended. The tax treatment of forgiven balances changed on January 1, 2026. Employer eligibility rules for the public service program are being challenged in court.

If you qualify, forgiveness may still make sense. It’s risky to make it your only plan.

Clasp is not a forgiveness program. We don’t cancel loans, and we’re not the government. Loan-Linked Hiring connects healthcare students and clinicians with employers that make student loan repayment support part of the job offer. This is repayment support, not cancellation.

What Loan-Linked Hiring means

A sign-on bonus is often a one-time payment. With Loan-Linked Hiring, an employer commits to monthly payments toward your student loans as part of the offer, for the length of the program or until employment ends. Think ROTC, but for healthcare: a commitment up front, tied to the job.

Here’s how it works:

• You see the terms first. The repayment amount and term are shown before you apply and before you accept.
• Payments are monthly. Your employer makes payments toward your eligible, synced student loans, facilitated through the Clasp platform, up to a specified maximum.
• Payments start after you begin work. They begin once employment begins and your student loans are synced, never at signing or before graduation.
• Support is on top of your pay. Repayment is added to your salary and benefits, not carved out of them.
• Nothing already paid gets taken back. If employment ends, payments stop. You don’t have to return contributions already made, but you remain responsible for your remaining student loan balance.

Offers vary widely by employer, role, and location. Across the Clasp network, repayment amounts range from roughly $10,000 to $180,000¹, and selection isn't guaranteed. Look at the terms of the particular offer you’re considering, including its amount and duration.

Five questions to help you think it through

These questions aren’t financial or tax advice. They’re a way to organize a conversation with your servicer, a financial advisor, or a tax professional.

1. Where will you work for the next decade? Federal public service forgiveness depends on working for a qualifying employer for ten years. If your career path could take you elsewhere, that matters when planning around forgiveness.

2. How long are you comfortable waiting? Forgiveness arrives at the end of its qualifying timeline. Employer payments arrive monthly once employment begins and your student loans are synced. Consider how each timeline fits your plans.

3. How do you feel about rules changing? Federal programs are set by law and regulation, which have changed repeatedly. Employer repayment terms are set by each employer and shown to you before you apply and before you accept. Read those terms closely, including payment amounts, duration, and eligibility requirements.

4. What might the tax treatment mean for you?² Forgiven balances through income-driven plans can be federally taxable since 2026. If an employer opts into a formal written Section 127 plan, up to $5,250 a year (shared with tuition assistance) can be excluded from federal tax, and amounts above that may be taxable. Ask a tax professional how each would apply to you.

5. What kind of student loans do you have? Federal forgiveness programs generally apply only to federal student loans. Employer programs set their own rules about which student loans are eligible. Check which of your student loans each program covers.

It's not necessarily either/or

You can keep track of federal forgiveness programs while looking for an employer that contributes toward your student loans.

How the two interact depends on your loans, your plan, and the employer’s program. Check with your servicer and StudentAid.gov before accepting an offer rather than assuming the programs fit together in a particular way.

What to ask a recruiter

Get specific about what’s in the offer:

• What is the full range of repayment amounts for this role, and how long does the program run?
• When do payments begin, and how often are they made?
• What happens to payments if I leave?
• Which of my student loans are eligible?
• Has the employer set up a Section 127 plan, and how are payments treated for taxes?

Our guide to what to ask before you sign goes deeper: Companies That Pay Down Student Loans.

Forgiveness may be part of your future. You can see an employer’s repayment amount and term before you apply and before you accept. Clasp is not a forgiveness program: Loan-Linked Hiring is repayment support from an employer, not cancellation. Explore the opportunities and read the terms to see what fits your plans.

Disclosures

¹ Repayment amounts, eligibility requirements, and program terms are set by each participating employer and vary by role, specialty, and location; selection and specific repayment amounts are not guaranteed. Figures shown are illustrative examples drawn from Clasp platform data and do not constitute an offer of employment. If selected, your employer will make monthly payments on your behalf toward your eligible synced student loans via the Clasp platform up to a specified maximum. Employer contributions are not subject to clawback, meaning you do not have to repay contributions made while employed. However, you remain ultimately responsible for your student loan obligation, and if you voluntarily leave, are terminated for cause, or fail to meet employment terms, employer payments will cease and you must resume payments on the remaining balance. Employer student loan contributions may be treated as taxable income above federal annual limits; consult a tax advisor regarding your situation. Clasp is not a lender, does not refinance student loans, and does not provide financial advice.

² You may be subject to income tax for some or all of the loan payments made by your employer on your behalf. You should consult with a tax professional if you have any questions regarding tax consequences.

Clasp is not a licensed financial advisor, lender, or loan servicer. This article is for informational purposes only and does not constitute financial, legal, or tax advice. Please consult a qualified financial professional or visit StudentAid.gov to evaluate how federal repayment and forgiveness rules affect your specific circumstances.