Key Points on How To Know If My Student Loans Will Be Forgiven
- Federal student loan forgiveness is available through multiple programs.
- Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven Repayment Forgiveness is the most common federal programme.
- Borrowers should check which types of loans they have, confirm their eligibility, and follow up as needed to ensure progress. How Do I Know Whether My Student Loans Will Be Forgiven?
Millions of federal student loan borrowers are eligible for loan forgiveness under long-standing programs, but many don’t know whether they qualify or how to confirm their status. While recent legal changes and delays have caused confusion, borrowers can still seek relief under current rules.
We estimate that roughly 50% of student loan borrowers are eligible for some type of student loan forgiveness. There are over 80 different student loan forgiveness and repayment assistance programmes available today. Many of these programmes have existed for over a decade and are not currently at risk of any legislative changes.
Here’s what borrowers need to know about whether their student loans will be forgiven. We break down a checklist for how to qualify for the most popular loan forgiveness programs. How Do I Know Whether My Student Loans Will Be Forgiven?
1. Public Service Loan Forgiveness (PSLF)
The PSLF program forgives remaining federal loan balances after 120 qualifying monthly payments made while working full-time for a qualified public service employer.
To be eligible for PSLF: How To Know If My Student Loans Will Be Forgiven?
Checklist on How To Know If My Student Loans Will Be Forgiven?
The Department of Education has clarified that payments paused during the pandemic count toward PSLF if all other criteria are met (specifically, you filed the Employment Certification Form to cover all those months).
Some payments may qualify through the PSLF buyback program, where you can buy back missing months’ payments. For example, the SAVE forbearance is eligible for PSLF buyback. How To Know If My Student Loans Will Be Forgiven?
When your green banner reaches 120 payments and you receive your golden letter, the PSLF will forgive your student loan. How Do I Know Whether My Student Loans Will Be Forgiven?
2. Income-Driven Repayment Plan (IDR) Related Forgiveness
Under IDR plans, borrowers make payments based on income and family size for 20 or 25 years. Any remaining balance at the end of that period is forgiven. How Do I Know Whether My Student Loans Will Be Forgiven?
Recent policy changes have paused forgiveness actions under SAVE, PAYE, and ICR due to ongoing litigation.
The only active IDR forgiveness pathway at this time is IBR. If you do hit 20 or 25 years or eligible payments under PAYE or ICR, you will be placed into a forbearance awaiting the outcome of the court cases.
You will know you reached student loan forgiveness under IDR-related loan forgiveness when your green banner/loan tracker count reaches either 240 or 300 payments. How To Know If My Student Loans Will Be Forgiven?
3. Teacher Loan Forgiveness (TLF): How To Know If My Student Loans Will Be Forgiven?
This program offers up to $17,500 in forgiveness for teachers who work five consecutive years at qualifying low-income schools. This plan is not as generous as PLSF, but it does offer a shorter path to student loan forgiveness for teachers. How To Know If My Student Loans Will Be Forgiven?
Teacher loan forgiveness only takes 5 years, but the downside is that you can only receive $5,000 or $17,500 in forgiveness. That may not be enough to get rid of your student loan debt.
Checklist on How To Know If My Student Loans Will Be Forgiven?
Highly qualified math, science, and special education teachers can receive the highest benefit ($17,500). Other teachers may qualify for up to $5,000.
It’s also important to note that you cannot “double-dip” your time for both TLF and PSLF. That’s why, unless you get your full loan forgiven, it usually makes sense to go with PSLF.
You will know you can receive student loan forgiveness under TLF when you submit your application after five consecutive years of teaching.
Other Loan Forgiveness Options
While it is not technically “forgiveness,” certain discharge programs can cancel federal student debt due to hardship or misconduct.
Other Circumstances That May Qualify:
- Total and Permanent Disability
- School Closure within 180 days of withdrawal
- Borrower Defense to Repayment
- False Certification
- Death
- Bankruptcy
Make Sure You Know Your Situation
The key to knowing if your student loans will be forgiven is to both fully know your student loan debt information and know the criteria of the programme you’re working towards. How To Know If My Student Loans Will Be Forgiven?
None of the loan forgiveness programmes for students are automatic. They all require you to work or pay over time and then apply for loan forgiveness. Even in the cases of disability and death, you need to submit proof and follow the correct processes. How Do I Know Whether My Student Loans Will Be Forgiven?