Who qualifies for student loan forgiveness?

In July 2023, the federal government announced debt forgiveness for about 804,000 student loan borrowers. 

Only borrowers with Direct Loans are eligible for loan forgiveness or Federal Family Education Loans (FFEL). You may be able to qualify with other types of federal student loans, like Perkins Loans, by consolidating into a new Direct Consolidation Loan. 

Remember to keep proof of every payment you make by saving your digital receipts and monthly statements. The necessary number of on-time payments, which vary based on a borrower’s repayment plan, don’t have to be in a row. If you miss one this month, but make an additional payment in the future, you still qualify.

There are two ways to qualify for student loan forgiveness:

1. Public Service Forgiveness Loan (PSLF): Under this program, borrowers are eligible for loan forgiveness after 120 qualifying monthly payments (10 years) as a full-time employee in the government (that includes federal, state, local, United States military service, or tribal government) or a qualifying non-profit.
2. Income-driven repayment (IDR) plan: These plans calculate your monthly payments based on your income and family size. The lower your income, the lower your monthly payment. IDR plans are usually forgiven after 20 or 25 years of repayment, depending on what level of education the loan was for.
   
   There are currently four income-driven repayment plans:

• Saving on a Valuable Education (SAVE) Plan – formerly the Revised Pay As You Earn (REPAYE) Plan
• Pay As You Earn (PAYE) Repayment Plan
• Income-Based Repayment (IBR) Plan
• Income-Contingent Repayment (ICR) Plan

The Department of Education has been notifying borrowers who qualify for forgiveness since July 2023. Eligible borrowers will be forgiven automatically and don’t need to do anything to qualify. They will continue to receive notifications from the Department of Education once they complete the qualifying 20 or 25-year mark of qualifying payments. You contact your loan servicer for more information about the terms of your loan and the forgiveness plan.