Who Is Eligible For Student Loan Forgiveness? August 2024

• Your eligibility for student loan forgiveness varies by program and personal circumstances, with requirements often being strict and specific.

• You have access to several immediate relief options implemented by the Biden administration, including expanded forgiveness programs and discharges for specific situations.

• To apply for forgiveness, you need to identify the right program, submit your application through official channels, and stay vigilant about program updates and recertification requirements.

All federal student loan borrowers are technically eligible for some form of student loan forgiveness. This is true for all types of loans, including Federal Family Education Loans, Perkins Loans, Parent PLUS Loans, and Federal Direct Loans. But the reality is more complex.

Many borrowers won’t actually get their loans forgiven because the eligibility requirements for different programs are strict.

Most programs require at least a decade of payments under an income-driven repayment plan or apply only in specific circumstances, such as attending a fraudulent for-profit school or becoming unable to work due to disability. And still others with FFEL or Perkins Loans will need to consolidate those loans into a Direct Consolidation Loan before they qualify.

Related

• Can I Still Apply For Student Loan Forgiveness?

• Nonprofit Employee Student Loan Forgiveness: PSLF & More

While you may be eligible for these long-term programs, you might be wondering about the immediate forgiveness opportunities you’ve heard about in the news. As of August 2024, here are the current options for more immediate relief implemented by the Biden administration:

1. Public Service Loan Forgiveness (PSLF) Program: The administration has broadened eligibility and simplified the application process, resulting in $69.2 billion forgiven for 946,000 full-time employees of government and nonprofit organizations.

2. One-Time Account Adjustment: This initiative corrects past errors in payment counts under IDR Plans and expands eligibility for forgiveness programs. The U.S. Department of Education has already forgiven over $62.5 billion in student loan debt for 870 thousand public servants. And more debt relief is around the corner as the department expects to finish reviewing borrowers’ accounts this September.

3. Borrower Defense to Repayment: The Sweet v. Cardona settlement provides relief for borrowers whose schools engaged in misconduct, with $22.5 billion approved under the Biden administration. The department also announced full debt cancellation for former students of the Art Institutes, DeVry, ITT Tech, and other shuttered schools.

4. Total and Permanent Disability (TPD) Discharge: The administration has streamlined the process and expanded eligibility, leading to $14.1 billion in forgiveness for 548,000 borrowers.

5. Closed School Discharges: The administration has provided automatic loan discharges for students who attended schools that closed while they were enrolled or shortly after they left.

These programs have already provided significant relief to millions of borrowers, with the administration reporting a total of $127 billion in forgiveness for nearly 3.6 million borrowers to date.

Related: Biden Student Loan Forgiveness

President Biden tried to make forgiveness programs bigger, including a plan to forgive up to $20,000 per borrower who received a Pell Grant. But the Supreme Court stopped that.

Still, the Biden Administration also introduced the Saving on a Valuable Education Plan, a new IDR option to help some borrowers pay less and forgive loans faster. But the courts stopped that plan, too.

Now, the Education Department has told servicers to put millions of SAVE Plan borrowers into administrative forbearance, stalling forgiveness progress indefinitely for those working towards PSLF and IDR Forgiveness.

Related: Why Is My Student Loan in Administrative Forbearance?

Applying for student loan forgiveness can seem daunting, but understanding the basic process can help you get started. Each program has its specific requirements. Here are some general steps and tips to keep in mind:

1. Identify the Right Program: Based on your career, loan type, and financial situation, determine which forgiveness program you most likely qualify for. For example, if you work for a government, nonprofit, or other qualifying employer, then the PSLF Program is the way to go. Likewise, if you teach in a qualifying low-income school or education service agency, Teacher Loan Forgiveness can give you some relief.

2. Gather Necessary Documentation: Many of these debt forgiveness programs require you to make student loan payments for several years, attend a certain school, or experience a change in your health. Have these ready before you start.

3. Submit Your Application: Depending on the program, you’ll apply through a loan servicer or the Federal Student Aid website (e.g., PSLF Help Tool and Borrower Defense to Repayment).

4. Follow Up Regularly: Application reviews can take time. Stay in touch with your servicer and respond promptly to any requests for additional information.

5. Continue Making Payments: Unless explicitly told otherwise, keep making your regular loan payments while your application is under review.

Key Tips:

• Always apply through official government websites or your loan servicer. Avoid third-party companies that charge fees for these free services.

• Keep copies of all submitted documents and correspondence.

• Stay informed about program changes that could affect your eligibility.

Related: How to Apply for Student Loan Forgiveness.

Does the FFELP consolidated loan type qualify for loan forgiveness under Biden?

Yes, FFELP consolidated loans can get forgiveness under Biden’s plans. You must consolidate them into a Direct Consolidation Loan. This makes you eligible for programs like Public Service Loan Forgiveness and income-driven repayment forgiveness.

Related: How FFEL Loan Forgiveness Works

What are the income requirements for student loan forgiveness?

Income requirements differ by program. For income-driven repayment plans, your income sets your monthly payment, not if you get forgiveness. PSLF doesn’t have an income limit. But, some programs might affect your forgiveness based on your income.

Related: Student Loan Forgiveness Income Limits

Are graduate loans eligible for forgiveness?

Yes, graduate loans can get forgiveness programs. You can qualify for income-driven repayment plans, Public Service Loan Forgiveness, and other federal forgiveness programs. Some programs might have different rules for graduate and undergraduate loans.

How do I know if I’m eligible for student loan forgiveness?

To see if you’re eligible, check your loan type (federal loans work for most programs), look at your job status (some programs need certain employers), and check your repayment history. Use the Federal Student Aid website or talk to your loan servicer for a personalized check.

Is it too late to apply for PSLF?

No, it’s not too late for the Public Service Loan Forgiveness Program. The program is still open, and you can apply if you meet the criteria. Start by completing the PSLF form to confirm your job and track your qualifying payments.

How can I check if my student loans are forgiven?

To see if your loans are forgiven, go to your Federal Student Aid account at studentaid.gov and look at your loan details. You can also reach out to your loan servicer. They should tell you about any forgiveness. But it’s a good idea to check your loan status yourself.