Various student loan programs allows for student loan forgiveness without the taxpayer having to pay the tax consequences

The first scenario is if you hold a position in certain national health service corps, then the balance of the debt may qualify to be forgived aftert 10 years of service. The 2nd scenario is if you hold a job in a national helath service corps, the you may qualify for loan repayment for up to $35K/yr subject to certain terms and conditions.