Still Owe Student Loans Over 50? Here’s What You Can Do

• You can still get student loan forgiveness after 50, but the rules are changing fast and new IDR applications are frozen.

• If you’re not close to forgiveness, you can still lower your payments legally by reducing your AGI, adjusting your tax filing, or switching plans.

• Don’t refinance, drain retirement savings, or take out home equity loans—those moves can cost you forgiveness you might still qualify for.

You’re over 50 and still dealing with student loan debt. Maybe they’re yours. Maybe they’re Parent PLUS. Either way, they’re still there—and the finish line keeps moving.

Now the rules are shifting again. The Trump administration has frozen new IDR applications and walked away from defending forgiveness programs like SAVE. If you were counting on relief, you’re not imagining things: it just got harder to get.

But there are still paths forward. This guide breaks down what to do based on your situation:

• How to protect forgiveness if you’re close

• How to lower payments if you’re not

• What to avoid so you don’t lose your shot

Let’s get into it.

Yes—but recent policy changes are making it harder.

Right now, there are two main ways older borrowers can get federal student loan forgiveness:

• Public Service Loan Forgiveness (PSLF): Available to government and nonprofit employees after 120 qualifying payments.

• Income-Driven Repayment (IDR) Forgiveness: Available to all federal borrowers who make payments under an IDR plan for 20 or 25 years.

But here’s the problem: The Trump administration has temporarily halted IDR plan processing.

What’s Going On With the IDR Freeze?

In early 2025, the Trump administration ordered a temporary freeze on all new IDR applications. That means:

• You can’t switch into an IDR plan if you’re not already in one.

• You can’t re-certify your income if you’re already in IDR.

• If you’re in SAVE, you’re stuck there—you can’t move to another plan.

The freeze came after a lawsuit challenged the legality of the SAVE plan. But in February 2025, a federal court confirmed that IDR and forgiveness are legal. Still, the Department of Education hasn’t reopened applications—and there’s no timeline for when that will change.

What You Can Do Right Now

If you’re over 50 and worried about missing out on forgiveness, here’s what to do now:

• Already in an IDR plan? Stay there. Payments still count toward forgiveness. Don’t switch or consolidate until the freeze lifts.

• Not in IDR yet? Get ready. You’ll need to move fast once the freeze ends. That could mean consolidating loans or applying immediately when processing resumes.

• Have Parent PLUS loans? You’ll need to consolidate into a Direct Loan before you can qualify for IDR. That’s on pause now—but gather your documents and prep your application.

• Can’t afford payments right now? Don’t default. Ask about deferment or forbearance, or consider a short-term move to the standard plan while you wait.

If you’re nearing retirement, you need relief now—not a long-term plan that takes another 20 years. The right move depends on two things: how close you are to forgiveness, and how much your income will drop once you stop working.

If You’re More Than 10 Years from Forgiveness

Stick with an income-driven repayment (IDR) plan. Payments are based on your adjusted gross income (AGI), not your loan balance—so the lower your AGI, the lower your payment.

Here’s how to lower your payment legally:

• File taxes separately if you’re married. This keeps your spouse’s income out of the IDR calculation.

• Certify income using a pay stub instead of your tax return if you received bonuses or one-time spikes in income.

• Claim your full household size—including kids, grandkids, or a non-working spouse—on your IDR application.

If You’re 1–2 Years from Forgiveness

If you’re almost there, the goal is to avoid overpaying while protecting your forgiveness timeline.

• If retirement will lower your income soon, your IDR payment could drop—recertify once that happens.

• If payments are draining your savings, consider forbearance or paying the minimum until you hit forgiveness.

• Don’t switch plans or consolidate right now unless a student loan expert confirms it won’t reset your forgiveness clock.

If Forgiveness Isn’t an Option

If you’re not eligible for PSLF or IDR forgiveness, focus on reducing your monthly payments without piling on unnecessary interest.

• Extended or Graduated repayment plans can lower payments, but you’ll pay more in interest over time. Choose this if cash flow is your priority.

• Married borrowers can file taxes separately to qualify for lower IDR payments, then amend the return within three years to file jointly and regain tax benefits. This is legal and IRS-approved—and often overlooked. Related: Will Married Filing Separately Help with Student Loans

Student loans can impact your retirement in three major ways:

• Your payments may drop after you retire. Income-driven repayment (IDR) plans adjust based on your income. If your earnings drop in retirement, your monthly payment can drop too—sometimes to $0.

• Social Security benefits count as income. If Social Security is your only or primary income, it will still be used to calculate your IDR payment. But since benefits are often lower than wages, your payment may still shrink. Related: Do Student Loans Affect Your Social Security Benefits

• Default can lead to Social Security garnishment. If your loans go into default, the federal government can take up to 15% of your monthly Social Security check. They can’t take your payment below $750, but that’s still a serious cut. To avoid this, get out of default through consolidation or loan rehabilitation.

If you’re receiving Social Security Disability Income (SSDI), you may qualify for Total and Permanent Disability (TPD) Discharge. This can eliminate your federal student loans entirely if you meet the medical requirements.

Retirement doesn’t erase federal student loan debt—but it can change how much you pay. The key is understanding those changes and acting early so your loans don’t follow you into every monthly check.

If you’re within a few years—or months—of loan forgiveness, now’s the time to lock in your progress. Don’t make sudden moves, and don’t assume you need to pay everything off. Your best strategy is to stay on track and avoid mistakes that could cost you your forgiveness.

If You’ve Hit 120 PSLF Payments

• Stop making payments. Your balance should be forgiven tax-free.

• Submit your PSLF application immediately if you haven’t already. Don’t wait—processing can take time.

If You’re Close to IDR Forgiveness

• Made 20–25 years of payments? Keep going. If you’re within 1–3 years of forgiveness, don’t change plans or refinance—just stay the course.

• Made 300+ payments (including some before 2007)? You may qualify under the IDR Account Adjustment. Get into an IDR plan now if you’re not already, then request forbearance. Some borrowers are getting refunds on past overpayments.

What You Should Not Do

• Don’t refinance with a private lender. You’ll lose access to forgiveness permanently.

• Don’t cash out retirement savings. The loan might be forgiven—don’t pay it off with money you need to live on.

• Don’t take out a home equity loan. Turning student debt into secured debt puts your house at risk—and usually isn’t necessary.

When Should You Consider Paying Off Your Loans?

Forgiveness is usually the smarter path. But if the debt is hurting your life now, it might be worth clearing.

You might consider paying off your loans if:

• The stress is damaging your health, marriage, or day-to-day life.

• You can pay the balance in full without touching retirement savings or going into hardship.

If you owe $20K–$30K and have the cash on hand, it might be worth it. But if you owe $200K or more, draining your 401(k) or taking out a loan against your house is almost never the right move—especially when forgiveness is still possible.

Related: What Happens When You Pay Off Your Student Loan

Student loan forgiveness for borrowers over 50 isn’t automatic. If you’re eligible, you need to take action before policy shifts make it harder. If you’re still years away, the right strategy could save you thousands in payments.

Here’s what to do next:

• If you’re close to forgiveness: Double-check your payment count and submit your application ASAP.

• If you’re far from forgiveness: Look into income-driven repayment options to lower your monthly payments.

• If you’re retiring soon: Don’t let student debt eat into your savings—protect your financial future now.

There’s no one-size-fits-all answer, but there is a right move for your situation. We can help you figure it out.

Book a call with our student loan expert today. We’ll help you break down your options and find the smartest path forward—before it’s too late.

Related Reading:

• Student Loan Forgiveness for Seniors Over 65

• Student Loan Forgiveness for Social Security Recipients

• Can Social Security Be Garnished for Student Loan Debt