How 9 million borrowers can get student loan forgiveness

Here’s how 9 million student borrowers qualify for student loan forgiveness.

Here’s what you need to know — and what that means for your student loans.

Student loans

A staggering new report shows that 9 million student borrowers are now eligible for student loan forgiveness. This is an important statistic about student debt, as it accounts for almost 20% of student borrowers. The new data, released by the Center for Student Loan Protection, focuses on the Public Service Loan Forgiveness Program, which is one of the best ways to get student loan forgiveness in the shortest amount of time. That said, student borrowers have struggled in recent years to qualify. Why? The requirements were confusing, which at times resulted in a rejection rate of up to 99%. How can you benefit from this student loan forgiveness? Let’s make it easy.


Student Loan Forgiveness: How to Qualify

Congress created the Public Service Loan Forgiveness program in 2007 to encourage more student borrowers to enter the public service. In exchange, student borrowers can get full forgiveness of their federal student loans. The program is currently open to all federal student loan borrowers, and it’s not too late to apply. Here are the main requirements to qualify for student loan forgiveness:

  • Have direct loans;
  • If you do not have direct loans, you must consolidate your federal student loans into a direct consolidation loan;
  • Work full-time (at least 30 hours per week) for a qualified federal, state, local, or tribal public service or nonprofit employer;
  • Enroll in an income-driven reimbursement plan such as IBR, PAYE, REPAYE, or ICR; and
  • Make at least 120 monthly student loan payments;


Student Loan Cancellation: Questions and Answers

Here are answers to common questions about civil service loan forgiveness:

Which Federal Student Loans Are Eligible for Public Service Loan Forgiveness?

Only direct student loans are eligible. This means that FFELP loans and Perkins loans are not eligible for public service loan forgiveness. However, you can convert FFELP and Perkins loans to a direct consolidation loan through student loan consolidation with the U.S. Department of Education, which may make your federal student loans eligible.


What are the main changes to student loan forgiveness?

The Biden administration announced major changes to student loan forgiveness that will help more student borrowers qualify. Primarily, Biden relaxed the rules until October 31, 2022. Now you can count past student loan payments that were deemed ineligible for student loan forgiveness. This includes, for example, late or partial student loan payments or student loan payments made under an incorrect student loan repayment plan.


How do I apply for a public service debt forgiveness?

Contact your federal student loan officer for details. Log on to the Federal Student Aid website to verify that you are working for a qualified employer. You can also check if you have eligible federal student loans or if you need to make them eligible through student loan consolidation. It is important to submit a Employer Attestation Form to the U.S. Department of Education each year and each time you change jobs.


Are private loans eligible for student loan forgiveness?

The Civil Service Loan Forgiveness Program applies only to federal student loans.


Will your student loans be forgiven?

Once you have completed all of the requirements for civil service loan forgiveness, the remaining balance of your federal student loan will be forgiven.


Which employers are not eligible for student loan forgiveness?

You cannot get this student loan forgiveness if you work for a for-profit organization, a union, or a partisan political organization.


Can I get student loan forgiveness faster?

Unfortunately, you can’t get student loan forgiveness any faster. You must make 120 separate monthly payments on your student loan. Therefore, if you meet all the requirements, you should expect to make student loan repayments for 10 years to get student loan forgiveness.


How to qualify for student loan forgiveness if you don’t work in the public service

There are many ways to get student loan forgiveness. Since becoming president, Joe Biden has forgiven $25 billion in student loans. This includes:

  • Public service loan forgiveness: $7.3 billion for over 127,000 student borrowers through public service loan forgiveness.
  • Defense of the borrower until reimbursement: $7.9 billion for 690,000 borrowers for borrower defense against student loan repayments and school closures.
  • A permanent disability: Over $8.5 billion for over 400,000 borrowers with total and permanent disabilities.

You can also get student loan forgiveness through income-driven repayment plans after 20 years (undergraduate student loans) or 25 years (graduate student loans) or monthly student loan repayments. Student loan forgiveness is also available to teachers through the Teacher Loan Forgiveness program.


Student loans: next steps

It is important to note that civil service loan forgiveness is a type of targeted student loan forgiveness. In contrast, a large-scale student loan forgiveness could impact most or all student borrowers. Biden is considering broad student loan forgiveness for millions of student borrowers. However, there is no guarantee that Biden will forgive all or most of the student loan debt. That said, Biden is considering $10,000 in student loan forgiveness and may reconsider a plan to forgive more student loan debt, including up to $50,000. There is no clear timeline for a possible large-scale student loan cancellation, but Biden could announce a decision before temporary student loan relief ends on August 31, 2022. Regardless of the president’s decision, you need to understand all of your options for student loan repayment. . It can help you save money and get out of debt faster. Here are some interesting options:


Student Loans: Related Reading

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Department of Education Announces Major Overhaul of Student Loans Service

Navient agrees to forgive $3.5 million in student loans

How to qualify for $17 billion in student loan forgiveness

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