Did Student Loan Forgiveness Pass? Latest 2024 Updates

• Broad student loan forgiveness hasn’t passed, but programs like PSLF and IDR still offer relief.

• You have until the end of September 2024 to act on the Fresh Start Program if you’re in default.

• Check your loan status and consider consolidation or enrolling in an IDR plan to stay eligible for forgiveness.

Broad student loan forgiveness has not been passed into law due to legal challenges. But as of September 2024, the Biden administration and the U.S. Department of Education have introduced major changes to help student loan borrowers access long-promised student debt relief.

These changes impact programs like Public Service Loan Forgiveness, Borrower Defense to Repayment, and 20 to 25-year forgiveness under income-driven repayment plans.

Related: Can I Still Apply For Student Loan Forgiveness?

When people ask “Did student loan forgiveness pass?” they’re often referring to either legislative efforts or recent policy changes. While the Biden-Harris administration’s broad HEROES Act-based student loan forgiveness plan was struck down by the Supreme Court, other debt forgiveness measures have continued, thanks to existing and newly expanded programs.

Was a Student Loan Forgiveness Law Passed?

No new broad-based student loan forgiveness law has been passed. The HEROES Act plan, which aimed to forgive $10,000 to $20,000 for most student loan borrowers, was overturned by the Supreme Court. The Court ruled that the plan violated the major questions doctrine, which requires clear congressional authorization for policies of significant economic impact. This blocked the administration from implementing the broad-based relief many borrowers had anticipated.

Despite the legal block on HEROES, President Joe Biden and the Secretary of Education, Miguel Cardona, have continued to use existing laws to forgive debt for specific groups.

Through various targeted programs, $169 billion in federal student loan balances have been forgiven for 4.76 million borrowers as of September 2024.

This includes forgiveness for student loan borrowers under programs like Public Service Loan Forgiveness Program, Borrower Defense to Repayment, and income-driven repayment forgiveness plans.

Did Any Deadlines for Loan Forgiveness Pass?

In terms of deadlines, certain opportunities for temporary student debt relief, like the limited-time PSLF waiver, have indeed passed. But many forgiveness opportunities are still active. Programs like PSLF and IDR forgiveness are ongoing, with new policies expected to take effect soon.

For instance, the Biden administration is working on new regulations under the Higher Education Act (HEA). These rules aim to waive unpaid interest, forgive loans for those who have made payments for 20 to 25 years, and introduce stricter standards for discharging federal student loan debt tied to low-value educational programs. While these plans face potential legal challenges, they remain in progress and could be implemented as soon as this fall.

In short, while broad debt cancellation efforts via the HEROES Act failed to pass, other forgiveness measures remain active and have already provided substantial relief for millions of student loan borrowers.

Related: Are Student Loans Forgiven After 20 Years?

Although broad student debt cancellation has faced legal challenges, the Biden administration has made significant progress through targeted programs. Here’s a quick overview of the most important developments:

• August 2022: The HEROES Act student loan forgiveness program was announced, aiming to cancel up to $20,000 in loans per borrower. But this plan was overturned by the Supreme Court in June 2023, blocking large-scale student debt relief.

• July 2023: The Saving on a Valuable Education (SAVE) Plan was introduced as a more generous income-driven repayment (IDR) option, reducing monthly payments for many student loan borrowers. The White House has faced opposition, and full implementation of this new plan is currently paused due to ongoing legal challenges.

• September 2024: Despite these setbacks, $169 billion in loans have been forgiven for 4.76 million borrowers through existing programs, such as Public Service Loan Forgiveness (PSLF) and Borrower Defense to Repayment.

Looking ahead to the 2024 election, Republicans may continue to block further forgiveness efforts if Donald Trump is elected. If Kamala Harris wins, she may pick up where Biden left off, but she may need Congress’s support to pass laws and secure long-term student debt relief. The outcome of this election could significantly impact future student loan repayment policies.

For detailed updates on these forgiveness efforts, visit our Biden Student Loan Forgiveness page.

Many borrowers are concerned that they’ve missed out on student loan forgiveness opportunities—whether due to older loan types, default status, or not enrolling in the right repayment plan in time. Here’s what you need to know to ensure you’re still on the path to relief.

Older FFEL or Perkins Loans Not Consolidated

If you have older loans, such as commercially held Federal Family Education Loans (FFEL) or Perkins Loans, you may feel like you missed the boat on relief programs like Public Service Loan Forgiveness or the Income-Driven Repayment Waiver. These loans didn’t qualify for many forgiveness programs unless they were consolidated into a Direct Loan.

What You Can Do: It’s not too late to consolidate your FFEL or Perkins Loans into a Direct Consolidation Loan, which would make you eligible for many forgiveness programs, including PSLF and the one-time account adjustment that credits you for past periods of repayment, deferment, or forbearance. The one-time IDR account adjustment is expected to be implemented in 2024, so if you haven’t consolidated yet, act now to take advantage.

Related: FFEL Loan Forgiveness

Borrowers in Default Who Missed Fresh Start

The Fresh Start Program, which ends at the end of September 2024, was designed to help borrowers in default by giving them the opportunity to return their loans to good standing. This program allowed defaulted borrowers to avoid wage garnishments and collection activities while restoring access to federal aid, including forgiveness programs.

What You Can Do: There is still time to take advantage of Fresh Start if you act before the program ends. Contact your loan servicer to get out of default and enroll in a repayment plan. Once in good standing, you may also qualify for forgiveness under the Total and Permanent Disability Discharge program or through an income-driven repayment plan.

Not Enrolled in an IDR Plan for One-Time Account Adjustment

The one-time account adjustment allows borrowers to receive credit toward forgiveness for past periods of repayment, deferment, or forbearance—regardless of whether they were enrolled in an IDR plan at the time. This adjustment applies to borrowers closer to forgiveness under IDR or PSLF programs.

But if you receive the adjustment and still don’t have enough credit for forgiveness (e.g., you’re a few years short of the 20 or 25 years required), you’ll need to switch to an IDR plan and make monthly payments to reach the finish line.

What You Can Do: Due to ongoing litigation around the SAVE plan, borrowers can’t currently enroll in an IDR plan. If you apply, you’ll be placed into a processing forbearance until the legal situation is resolved. Once the option becomes available again, switching to an IDR plan is crucial if you’re a few years short of forgiveness after receiving the adjustment.

But be cautious—if you’ve been paying under extended or graduated repayment plans with a low, fixed monthly payment, switching to an IDR plan could significantly increase your monthly payment, especially if you’re a high earner.

Your payments could double or even triple, and you might not know how long you’ll need to make those payments because the Education Department has yet to update borrowers on the adjustment credits, despite a promised deadline of September 1, 2024. As of September 13, 2024, those updates have not been provided.

Related: Student Loan Forgiveness Income Limits

Unsure If You Qualify for Relief

If you’re unsure whether you qualify for forgiveness, review your current loan status and repayment history. Many borrowers may already be closer to forgiveness than they realize due to adjustments like the one-time IDR waiver or past deferments and forbearances that count toward PSLF or IDR forgiveness.

What You Can Do: Log into your Federal Student Aid (FSA) account and review your loan status. Check your eligibility for forgiveness programs and consolidate if needed. Contact your loan servicer for personalized guidance.

If you’re still unsure about your student loan forgiveness options or worried you may have missed out on relief, now is the time to take action. Our team of student loan experts is here to guide you through the complexities of forgiveness programs, consolidations, and repayment plans. Book a 1:1 consultation today to get personalized advice and ensure you’re on the right path toward managing your student loans.