10 year forgiveness student loans

Last Updated on August 12, 2023 by Oluwajuwon Alvina

Are you currently paying off student loans? You’re not alone. With the increased cost of university education, many graduates are having to take out loans that can stretch well into their 40s or 50s. Finding a solution to help solve your student loan debt may seem like a daunting task, but there is a solution — it’s called 10 year forgiveness student loans. The 10 year forgiveness student loans are a new program that was provided by the government in order to have students have low monthly payments. Beforehand, the borrowers had interesting payment plans that made it hard to afford their student loans, which is why these programs were created.

Student Loan Forgiveness: Are student loans being forgiven after 10 years?  | Marca

In this article, you will learn about; loan forgiveness, student loan cancellation, student loan forgiveness and many more. Also, on our website, information such as – student loan forgiveness 2022, department of education student loan forgiveness, how to apply for student loan forgiveness, pslf loan forgiveness, biden student loan forgiveness and many more are available.

Most students have heard of the Public Service Loan Forgiveness (PSLF) program. The PSLF program has been created to convince students to take out government loans for their education, and then to repay those loans back in full once they graduate. Normally, the student loan forgiveness process takes 10 years – starting in October 2017, the new PSLF program will be forgiving student loans after 10 years of repayment.

10 year forgiveness student loans

Student loan forgiveness is a great opportunity to save money on your current student loans. While 10 year forgiveness student loans are a popular option, there are many different options available.

Every lender has their own rules when it comes to student loan forgiveness. Some lenders will allow you to take up to 10 years off of your total loan amount, if you have not already paid off the loan in full. Other lenders may allow you to take longer than 10 years, but require some sort of collateral in order to do so.

If you think that you may qualify for one of these programs, it is important that you understand everything that is involved before signing up. This way, you will know exactly what you are getting into and how much money you can expect to save each month.

Student loans are a real pain. They can feel like a lifelong burden and many people simply don’t know all the options that are available to them for student loan forgiveness.

If you’re struggling with your student loans, you may want to consider the 10 year forgiveness program. The government will forgive any outstanding balance on your student loans if you make payments for ten years or more.

It’s important to note that not all types of student loans qualify for this program. This type of loan only applies to federal direct loans, which are available through the Department of Education.

10+ Student Loan Forgiveness Programs That Discharge Loans

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Student loan forgiveness might seem too good to be true, but there are legitimate ways to get it through free government programs.

The following options are available only to borrowers with federal student loans. Some programs have very specific requirements that make them difficult to qualify for, but income-driven repayment plans are open to most borrowers.

The information below is about existing student loan forgiveness programs. Learn more about the potential for Biden Student Loan Forgiveness.

You’re not eligible for federal student loan forgiveness programs if you have private loans, but there are other strategies for managing private loan debt.

Student loan forgiveness programs

1. Income-driven repayment forgiveness. The federal government offers four main income-driven repayment plans, which allow you to cap your loan payments at a percentage of your monthly income. When enrolled in one of these plans, your remaining loan balance will be eligible for forgiveness after 20 or 25 years, depending on the plan. These plans are most beneficial for those with large loan balances relative to their income. Only 32 borrowers have received loan forgiveness through income-driven repayment forgiveness, according to the National Consumer Law Center. This forgiveness was made tax free retroactive to Dec. 2020 through the end of 2025, as part of the March 2021 American Rescue Plan. However, most borrowers will not qualify for forgiveness through income-driven repayment until the early 2030s.

2. Public Service Loan Forgiveness. Public Service Loan Forgiveness is available to government and qualifying nonprofit employees with federal student loans. Eligible borrowers can have their remaining loan balance forgiven tax-free after making 120 qualifying loan payments. Until Oct. 31, 2022, the Education Department has expanded which payments on federal student loans count toward PSLF through a limited waiver; now, payments on FFEL and Perkins loans, late payments and payments made on any repayment plan will retroactively count as qualifying payments.

3. Teacher Loan Forgiveness. Teachers employed full time in low-income public elementary or secondary schools may be eligible for Teacher Loan Forgiveness after working for five consecutive years. They can have up to $17,500 in federal direct or Stafford loans forgiven. To qualify, teachers must have taken out loans after Oct. 1, 1998.

4. Student loan forgiveness for nurses. Nurses shouldering student debt have several options for student loan forgiveness: Public Service Loan Forgiveness, Perkins loan cancellation, and the NURSE Corps Loan Repayment Program, which pays up to 85% of qualified nurses’ unpaid college debt. Public Service Loan Forgiveness may be the most likely option for most nurses — few borrowers have Perkins loans, and the NURSE Corps program is highly competitive.

5. Obama student loan forgiveness. There’s no such thing as “Obama student loan forgiveness.” However, some student “debt relief” companies use it as a catch-all term for free federal programs — which they charge to enroll borrowers in. If you encounter a company offering “Obama student loan forgiveness,” consider it a red flag. Enrolling in federal programs like income-based repayment and federal student loan consolidation is free to do on your own through the Department of Education.

Other student loan forgiveness programs

There are a few additional niche student loan forgiveness or payment assistance programs you may qualify for through federal or state programs. Eligibility in these programs depends on your profession and where you work.

  1. State-sponsored repayment assistance programs. Licensed teachers, nurses, doctors and lawyers in certain states may be able to take advantage of programs to assist with repaying debt. For example, the Mississippi Teacher Loan Repayment Program will pay up to $3,000 per year for a maximum of four years on undergraduate educational loans to teachers with a specific teaching license for each year of teaching full time in a particular geographical or subject area. Contact your state’s higher education department to find out if you qualify for a program.
  2. Military student loan forgiveness and assistance. Military personnel in the Army, Navy, Air Force, National Guard and Coast Guard may qualify for their own loan forgiveness programs. In the National Guard, for example, qualifying soldiers and officers could receive up to $50,000 to pay off federal student loans through the Student Loan Repayment Program.
  3. Additional student loan repayment assistance programs (LRAPs): There may be other national or organizational student loan repayment assistance programs offered for public service professions. The National Institutes of Health, for example, offers up to $35,000 in debt assistance annually to health professionals who are appointed by the institutes to conduct research. The American Bar Association has a list of state LRAPs for lawyers.

Student loan cancellation programs

  1. Perkins loan cancellation. Borrowers with federal Perkins loans can have up to 100% of their loans canceled if they work in a public service job for five years. In many cases, approved borrowers will see a percentage of their loans discharged incrementally for each year worked. The Perkins loan teacher benefit is for teachers who work full time in a low-income public school or who teach qualifying subjects, such as special education, math, science or a foreign language.

Student loan discharge programs

  1. Closed school discharge. You may qualify for loan discharge if your school closes. At the time of closure, you must have been enrolled or have left within 120 days, without receiving a degree. If you qualify, contact your loan servicer to start the application process. You’ll need to continue making payments on your loan while your application is being processed. If you’re approved, you will no longer have to make loan payments and you may be refunded some or all of the past payments you made on the loan.
  2. Borrower defense to repayment discharge. Borrowers defrauded by their colleges may qualify for debt relief. You’ll need to file a borrower defense to repayment claim with the U.S. Department of Education. If you qualify, you may have your loans automatically discharged, at the discretion of the Education Department, if your school was involved in clear, widespread fraud or misrepresentation that affected a broad group of borrowers.
  3. Total and permanent disability discharge. If you cannot work due to being totally and permanently disabled, physically or mentally, you may qualify to have your remaining student loan debt canceled. To be eligible for a total and permanent disability discharge, you’ll need to provide documentation proving your disability. Once your loans are discharged, the government may monitor your finances and disability for three years. If you don’t meet requirements during the monitoring period, your loans may be reinstated. Details on the application process are available at disabilitydischarge.com.
  4. Total and permanent disability discharge for veterans. Veterans who are totally and permanently disabled will have their student loan debt discharged. The process will be automatic unless they decline due to potential state tax liability (there is no federal tax liability for veteran loan forgiveness).
  5. Discharge due to death. If you die, your federal loans will be discharged once a death certificate is submitted to your loan servicer. Your parent’s PLUS loans used to pay for your schooling will be discharged if the parent who holds the loan or you die.

The caveats

Legitimate federal forgiveness, cancellation and discharge programs are free through the Department of Education, but there are other costs to consider.

  • Beware of scams. So-called debt relief companies claim to get rid of debt but rarely deliver after charging already-struggling borrowers high upfront fees. The only way to get debt discharged is through the legitimate government programs above, and it costs nothing to apply to them.

  • Forgiveness isn’t an option for defaulted loans. You’ll need to use consolidation or rehabilitation to get defaulted federal student loans in good standing before they’re eligible for forgiveness programs. If your loans won’t qualify for forgiveness, student loan settlement or bankruptcy may reduce your debt in severe cases. Defaulted federal loans are eligible for discharge programs.

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The Public Service Loan Forgiveness program, which was created in 2007 to forgive student loans for borrowers who worked in public service, is currently facing a backlog of applicants.

There are currently 145,000 people who have applied for the program since 2007, according to the Department of Education. However, only 864 borrowers have been approved for forgiveness.

The program is intended to help borrowers pay off their student loans after 10 years of working in public service jobs and making 120 payments on their loans. To be eligible for the program, borrowers must work full-time at a government organization or non-profit while enrolled in an income-driven repayment plan and make 120 monthly payments on time.

However, many borrowers have found that they do not qualify for the program due to misunderstandings about how it works and confusion about the eligibility requirements.

For example, there has been confusion about whether or not the payments need to be made consecutively or if there is a cap on how much debt can be forgiven. In addition, many borrowers who work in public service jobs that do not meet the requirements of the program because they are not government organizations or non-profits may find that they do not qualify for forgiveness. There has also been confusion about whether or not there is a cap.

loan forgiveness

Student Loan Forgiveness

In certain situations, you can have your federal student loans forgiven, canceled, or discharged. Learn more about the types of forgiveness and whether you qualify due to your job or other circumstances.

Understanding Loan Forgiveness

Forgiveness, cancellation, or discharge of your loan means that you are no longer required to repay some or all of your loan. Find out more using the links below.

Differences Between Forgiveness, Cancellation, and Discharge

The terms forgiveness, cancellation, and discharge mean nearly the same thing, but they’re used in different ways. If you’re no longer required to make payments on your loans due to your job, this is generally called forgiveness or cancellation. If you’re no longer required to make payments on your loans due to other circumstances, such as a total and permanent disability or the closure of the school where you received your loans, this is generally called discharge.

It’s important to remember that outside of the circumstances that may qualify you to have your loans forgiven, canceled, or discharged, you remain responsible for repaying your loan—whether or not you complete your education, find a job related to your program of study, or are happy with the education you paid for with your loan. Even if you were a minor (under the age of 18) when you signed your promissory note or received the loan, you are still responsible for repaying your loan.

Types of Forgiveness, Cancellation, and Discharge

The summaries below offer a quick view of the types of forgiveness, cancellation, and discharge available for the different types of federal student loans.

Public Service Loan Forgiveness

Available for Direct Loans.*

If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program.

PSLF forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

Learn more about the PSLF Program to see whether you might qualify.

Teacher Loan Forgiveness

Available for Direct Loans and FFEL Program loans.

If you teach full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency, you may be eligible for forgiveness of up to $17,500 on your Direct Loan or FFEL Program loans.

Learn more about the Teacher Loan Forgiveness Program, eligibility requirements, and how to apply.

Note: You may not receive a benefit for the same qualifying payments or period of service for Teacher Loan Forgiveness and Public Service Loan Forgiveness.

Note: The limited PSLF waiver temporarily waives this restriction for individuals who previously received Teacher Loan Forgiveness. Learn more about the limited PSLF waiver.

Closed School Discharge

Available for Direct Loans, FFEL Program loans, and Perkins Loans.

If your school closes while you’re enrolled or soon after you withdraw, you may be eligible for discharge of your federal student loan.

Learn about the eligibility requirements for closed school discharge and how you can apply.

Perkins Loan Cancellation and Discharge

Available only for Federal Perkins Loans.

You may be eligible to have all or a portion of your Perkins Loan canceled (based on your employment or volunteer service) or discharged (under certain conditions). This includes Perkins Loan Teacher Cancellation.

Learn more about Perkins Loan Cancellation and Discharge to see whether you are eligible and how to apply.

Total and Permanent Disability Discharge

Available for Direct Loans, FFEL Program loans, and Perkins Loans.

If you’re totally and permanently disabled, you may qualify for a discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.

Learn more about the Total and Permanent Disability Discharge process, eligibility requirements, and how to apply.

Discharge Due to Death

Available for Direct Loans, FFEL Program loans, and Perkins Loans.

Federal student loans will be discharged due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out.

Learn more about discharge due to death and what documentation is needed for discharge.

Discharge in Bankruptcy (in rare cases)

Available for Direct Loans, FFEL Program loans, and Perkins Loans.

In some cases, you can have your federal student loan discharged after declaring bankruptcy. However, discharge in bankruptcy is not an automatic process.

Learn about the process required to have federal student loans discharged in bankruptcy.

Borrower Defense to Repayment

Available for Direct Loans.*

You may be eligible for discharge of your federal student loans based on borrower defense to repayment if you took out the loans to attend a school and the school did something or failed to do something related to your loan or to the educational services that the loan was intended to pay for. The specific requirements to qualify for a borrower defense to repayment discharge vary depending on when you received your loan.

Learn about borrower defense to repayment process, eligibility requirements, and how to apply.

False Certification Discharge

Available for Direct Loans and FFEL Program loans.

You might be eligible for a discharge of your federal student loan if your school falsely certified your eligibility to receive a loan.

Learn about false certification discharge to see if you qualify and how to apply.

Unpaid Refund Discharge

Available for Direct Loans and FFEL Program loans.

If you withdrew from school and the school didn’t make a required return of loan funds to the loan servicer, you might be eligible for a discharge of the portion of your federal student loan(s) that the school failed to return.

Learn more about the unpaid refund discharge to see if you might qualify.

Forgery Discharge

Available for Direct Loans, as well as FFEL Program loans and Federal Perkins Loans held by the U.S. Department of Education.

Forgery is the creation of a false written document or alteration of a genuine one, with the intent to defraud. Victims of identity theft are frequently also the victims of forgery.

If you believe you were the victim of forgery, you might be eligible for a discharge of federal student loan(s) fraudulently made in your name.

Learn more about the forgery discharge to see whether you might qualify.

Eligibility for Parent Borrowers

As with loans made to students, a parent PLUS loan can be discharged if you die, if you (not the student on whose behalf you obtained the loan) become totally and permanently disabled, or if your loan is discharged in bankruptcy. Your parent PLUS loan may also be discharged if the child for whom you borrowed dies.

In addition, all or a portion of a parent PLUS Loan may be discharged in any of these circumstances:

  • The student for whom you borrowed could not complete his or her program because the school closed.
  • Your eligibility to receive the loan was falsely certified by the school.
  • Your eligibility to receive the loan was falsely certified through identity theft.
  • The student withdrew from school, but the school didn’t pay a refund of your loan money that it was required to pay under applicable laws and regulations.

Contact your loan servicer for more information.

How to Apply For Forgiveness

Contact your loan servicer if you think you qualify. If you have a Perkins Loan, you should contact the school that made the loan or the loan servicer the school has designated.

Loan Payments During the Application Review Period

Depending on the type of forgiveness, cancellation, or discharge you’re applying for, you may have to make payments during your application review. Check with your loan servicer to find out whether you must continue making payments during the application review period.

My Application Was Approved

If you qualify for forgiveness, cancellation, or discharge of the full amount of your loan, you are no longer obligated to make loan payments. If you qualify for forgiveness, cancellation, or discharge of only a portion of your loan, you are responsible for repaying the remaining balance.

If you qualify for certain types of loan discharge, you may also receive a refund of some or all of the payments you made on the loan, and any adverse information related to your delinquency or default on the loan may be deleted from your credit record. If the loan was in default, the discharge may erase the default status. If you have no other defaulted loans, you would regain eligibility for federal student aid.

My Application Was Denied

If your application was denied, you’ll remain responsible for repaying your loan according to the terms of the promissory note that you signed. Talk to your loan servicer about repayment options if you have a Direct Loan or FFEL Program loan. Check out repayment options.

If your loan is in default, visit Getting Out of Default to find out how to begin repaying your loan and your options for getting out of default.

If you believe that your application was denied in error, contact your loan servicer for more information.

student loan cancellation

Will Student Loans Be Canceled? Where We Stand

Student debt cancellation appears to be a likelier possibility than ever for certain borrowers.

Joe Biden’s Student Loan Plan: What It Could Mean for You

Student debt cancellation is the big question mark on the minds of federal student loan borrowers since President Joe Biden promised to forgive $10,000 per borrower while on the campaign trail.

Can broad student loan debt forgiveness ever happen? And should it?

Federal student loan forbearance ends Aug. 31. By then, most borrowers will not have made a payment in over two years, amid the pandemic. Some borrowers have even seen loan forgiveness. But when payments restart, most federal student loan borrowers will resume making monthly payments on the same outstanding balance they had when the pandemic began.

Since the start of Biden’s term, the Department of Education estimates that more than $18.5 billion in loans have been canceled for more than 725,000 borrowers. But that’s only for existing forgiveness programs.

Although Biden has voiced support for broad student loan forgiveness, since becoming president he has yet to offer a specific proposal or amount. Biden could ask that Congress pass a bill to cancel debt or, pending legal interpretation, use executive authority to do so.

As the debate on student loan forgiveness continues, borrowers should plan on the assumption that student loans will not be canceled in full. If it happens anyway, it’ll be a welcome surprise.

Here are some key moments in the conversation around student debt cancellation:

Where Biden stands on student debt cancellation

Members of Congress have urged Biden to cancel $50,000 in debt per borrower. But the president has reiterated that if he used his authority for broad loan forgiveness, it would not be for more than $10,000 per borrower.

He said, at a press conference on April 28, “I am considering dealing with some debt reduction; I am not considering $50,000 in debt reduction. But I’m in the process of taking a hard look of whether or not there will be additional debt forgiveness, and I’ll have an answer on that in the next couple of weeks.”

No provision in Biden’s 2022 budget proposal included broad student loan forgiveness. He had proposed forgiveness in the following instances during his presidential campaign:

  • If you attended a public college or university. Attendees of private historically Black colleges and universities and additional minority-serving institutions would also be eligible.
  • If you used the loans for undergraduate tuition.
  • If you earn less than $125,000. Biden’s plan referenced a phaseout of this benefit but did not offer further details.

Since there is no formal forgiveness proposal, there are no details about which loans might be canceled.https://player.megaphone.fm/NRD1495587353

Popular arguments for student debt cancellation

  • Student debt has caused borrowers to delay their lives. From starting businesses and buying homes to getting married and having children, student debt is preventing borrowers from making significant financial decisions, proponents of debt cancellation say.
  • Not all borrowers have degrees that boost earnings. Those with debt and no degree are four times as likely to default compared to those with a degree, according to  Brookings. About 41.8% of those who entered college in 2011-12 took on student loans, National Center for Education Statistics data shows. But six years later, only 59% had completed their bachelor’s degree. Borrowers without degrees don’t benefit from the increase in lifetime earnings that tend to correlate with college completion.
  • Student debt cancellation could reduce the racial wealth gap. Proponents point to data that shows a lack of generational wealth drives many Black and Hispanic families to lean more heavily on student loans to afford college. The inequities continue after graduation: Black and Hispanic graduates typically earn less than other graduates and are thus more likely to default on their loans.

Popular arguments against student debt cancellation

  • Student debt cancellation is inherently unfair. Critics argue those who didn’t go to college or those who already paid off their student loans would not benefit from student debt cancellation. Critics say cancellation would benefit only the 13% of the population who attend college, and argue cancellation is unnecessary because those with college educations tend to earn more.
  • Broad student debt cancellation is regressive. Research from a January 2022 Brookings Institution study argues cancellation would disproportionately benefit wealthy student loan borrowers — those with the highest amounts of debt typically have attended graduate school. Holding an advanced degree tends to correlate with higher earnings.
  • One-time cancellation doesn’t solve tomorrow’s student debt problem. If all student debt were eliminated, overall debt would return to the current level by 2035, according to July 2021 estimates by the Committee for a Responsible Federal Budget, a right-center public policy organization. If $10,000 in debt per borrower were eliminated, overall debt would rise to current levels by 2025.

How student debt cancellation could impact borrowers

Broad student loan forgiveness could affect 45.7 million borrowers with federal student loan debt who owe a total of $1.61 trillion to the government. Wiping out $10,000 each — as Biden called for while campaigning — would result in up to $457 billion canceled.

Here’s how that could affect borrowers based on their total debt owed:

For 15.2 million borrowers, a slate wiped clean. Nearly a third of federal borrowers could see their balances fall to zero with $10,000 in debt cancellation. Among those, 7.8 million owe less than $5,000 in student loans and 7.4 million owe between $5,000 and $10,000, according to federal data.

Of borrowers who default, over half (52%) have less than $10,000 of federal undergraduate debt, according to a June 2019 analysis of federal data by The Institute for College Access and Success.That’s because those with lower debt amounts often have not completed their schooling, so they don’t reap the benefits of a degree that leads to a better paying job. TICAS found that 49% of those who default did not complete their program of study..

For 18.9 million borrowers, some breathing room. Nearly 19 million borrowers owe between $10,000 and $40,000 in federal student loans, according to federal data. Without a detailed execution plan, these borrowers face a number of possible outcomes from broad student loan forgiveness. For example, cancellation might not reduce the amount they pay each month, but it could draw their end date closer and lower the total amount they’d pay overall, due to interest. Or it might wipe out one loan completely but leave payments on others intact.

For 11.6 million borrowers, a drop in the bucket. Households with high student debt are likely to hold advanced degrees and often have higher earnings. More than 8 million people owe the government between $40,000 and $100,000 in student loans. An additional 3.3 million borrowers owe more than $100,000 on their federal loans, data show. A borrower repaying $100,000 on the standard federal 10-year plan at 5% interest would pay off the loans 15 months early if $10,000 were forgiven.

Other plans we’re watching: financial aid, student debt

Policy proposals in the works

Pell Grant increases

The 2022 federal budget raises the Pell Grant maximum by $400, bringing the annual limit to $6,895 for the 2022-23 academic year.Free or lowered tuition at some colleges

Under this campaign proposal from Biden, college would become more affordable for students at private and public historically Black colleges and universities, tribal colleges and universities, and additional minority-serving institutions, or MSIs. Biden also called for free tuition and fees toward a degree or certificate for two years at a community college, but that proposal is no longer included in the spending plan approved by the House in November and that now awaits a Senate vote.Revised income-driven repayment and Public Service Loan Forgiveness

While campaigning, Biden proposed limiting IDR plans to just undergraduate loans, capping payments at 5% of income, not taxing the forgiven loan amount and automatically enrolling every federal student loan borrower in an IDR plan.A new PSLF

Biden campaigned on a plan for a new student loan forgiveness program for borrowers who provide a public service. Under this proposal, up to $50,000 could be forgiven; $10,000 of your debt would be automatically canceled for each year you perform eligible service, for up to five years total. It would not replace PSLF.Waived student loan interest

A group of Democratic senators called on Biden to waive interest on federal student loans through the duration of the pandemic. Interest has been paused during the current forbearance, which is saving borrowers an additional $5 billion per month, according to a letter sent by the group of senators to Biden on Dec. 6.More cost and performance transparency from colleges

The College Transparency Act builds on the current data available from the College Scorecard. It would establish a data system that provides information about college student enrollment, progression, completion and postgraduate outcomes, along with higher education costs and financial aid.Bankruptcy reform

Recent court rulings suggest some of the strict standards for getting student loans discharged in bankruptcy could be easing. Student loan discharge through bankruptcy is challenging because borrowers must prove their debt proves an “undue hardship” (known as the “Brunner test”). Sometimes private student loan borrowers are successful, but it almost never happens for federal student loan borrowers.

The Department of Education in February announced it would withdraw its appeal of a bankruptcy decision that would discharge $100,000 in student loans for a man whose medical condition made it difficult for him to hold down a job to repay his debt. The department has also indicated it is reviewing bankruptcy standards.

What else is on the way

A second chance at PSLF

There’s also a Public Service Loan Forgiveness limited waiver available through Oct. 31 that would cut through some of the red tape — at least for the next year — that led to high denial rates for loan forgiveness under the program.

Under the limited waiver, a broader set of loan types and repayment plans will be eligible for PSLF including past payments on FFEL or Perkins loans, late payments and payments made on previously non-qualifying repayment plans. Additionally, members of the military with federal student loans will also have any time spent in active duty count toward PSLF, regardless of whether payments were made during that time.

Borrowers must consolidate their loans into a direct loan and submit a PSLF form before Oct. 31 to benefit from the limited waiver.

As a result of the limited waiver, the Education Department estimates that 22,000 borrowers will automatically become eligible to have their loans discharged, and another 27,000 could as well if they certify their employment history. Overall, this could result in over $4.5 billion of loan forgiveness.

On Feb. 18, the Consumer Financial Protection Bureau said it would be stepping up its oversight of how servicers are implementing the waiver. The bureau said it had found “servicers made deceptive statements to borrowers about their ability to become eligible for PSLF.” If you are having difficulty receiving the help you need from your servicer, you can make a complaint to the CFPB.

Reconsideration for PSLF applications

Beginning April 2022, borrowers whose applications were rejected for PSLF and Temporary Expanded PSLF can request a reconsideration online at studentaid.gov. Anyone who thinks their application should be reconsidered can submit a request.

You’ll be able to submit one or more reconsideration requests of your application to certify employment or payment determinations. You won’t need to provide more documentation with your request, but you might have to provide more information following its review. There was no deadline provided.

You still must meet payment and employment requirements under the law, which includes the current waiver that would count previously ineligible payments.

To figure out if you need a reconsideration of your employer, you can use the PSLF Help Tool. If your employer isn’t eligible, consider supplying documentation as to why the not-for-profit organization you work for should qualify.

Federal Student Aid did not indicate how long it would take to review each submission. Make sure your studentaid.gov account has the most up-to-date contact information so you can receive correspondence. More information about reconsideration of payment counts and employer qualifications are available on the student aid site.Streamlined student loan services

Biden issued an executive order on Dec. 13 instructing multiple government agencies, including the Department of Education, to make updates to improve the delivery of government services. Details are still emerging, but borrowers can expect these changes:

  • A single repayment portal. Student loan borrowers with direct loans will be able to use one site to apply for, manage and repay their loans: studentaid.gov. Anyone who applies for federal student aid, including loans, has an FSA ID to log in to their account. Servicers are still managing loans, but borrowers can now make payments on the studentaid.gov site.
  • A streamlined Public Service Loan Forgiveness application. Federal student loan borrowers who are eligible for loan forgiveness can apply for the program with less paperwork or without having to fill out forms with information they already completed in the past. Details on what this streamlined application process might look like are as yet unclear.
  • Recommendations for other benefits and services. Students and student loan borrowers can receive relevant information about benefits and support services they may qualify for, such as subsidies for health care, broadband internet service support and food assistance. It’s unclear how these recommendations will be delivered.

Student loan servicer changes

Shifts are happening among student loan servicers, the private companies that manage federal student loans. Federal student loan servicers like Navient, GSMR and Cornerstone have left the space, while FedLoan is ending its contract in December 2022. That means your loans could change hands. Multiple loan servicers will be taking on the FedLoan portfolio including MOHELA, Aidvantage (formerly Navient), Edfinancial and Nelnet. But only MOHELA will be managing the PSLF program.

If you’re not sure who your loan servicer is, log in to studentaid.gov and find out. You can also get in touch with all of the loan servicer contact centers by calling 1-800-4-FED-AID.Payments restart Sept. 1

The ongoing forbearance period ends after Aug. 31. Borrowers with federal student loans should begin making plans soon to ensure they’re prepared for when payments restart in September.

» MORE: Student loan pause is extended, with payments resuming Sept. 1.

If you have been paying your loans through the forbearance period, there is no reason to stop now unless your financial situation changes. And if you haven’t been paying since forbearance began but can afford to restart, consider resuming payments now to save money on interest and help pay off your loans faster.

For those who owed interest at the beginning of the forbearance period, that interest will capitalize, or be added to what is owed on the loans, when the pause ends. But any payments made prior to then will first go toward accrued interest rather than your principal, so paying the accrued interest off now can save you money on interest later on.

If you’re unsure whether you’ll be able to afford your student loan payments come Sept. 1, start setting aside your monthly student loan payment now to see if you can work it into your budget.

All collections activities through the Treasury offset program on federal student loans in default are suspended until after the payment pause ends, which includes the withholding of 2021 tax refunds, the child tax credit or Social Security benefits.

If you’re having trouble setting your payment aside or know you’ll have trouble paying your loans when payments restart, contact your servicer ahead of Sept. 1 to discuss income-driven repayment plans.

An IDR plan will limit payments to a portion of your income and will extend your payment term. By contacting your servicer prior to Sept. 1, once your payments do resume, you’ll be ready with a payment plan that works for your income.

Through Feb. 28, 2023, you can temporarily self-report income when applying for or recertifying an income-driven repayment plan, according to the Education Department. That means you don’t have to submit tax documentation when you submit an IDR application online. The Student Loan Servicing Alliance confirmed in December that borrowers may also self-certify by phone.

Borrowers with questions about their loans or those in special circumstances should contact their servicer prior to September to ensure a smooth restart to payments.A fresh start for student loan borrowers in default

When student loan payments restart, all federal loan borrowers with loans in delinquency or default will get a “fresh start,” the education department announced April 6 as part of the pause extension. That means these borrowers will once again have access to income-driven repayment plans, Public Service Loan Forgiveness and will no longer face collections fees and other consequences of default.

Nearly 8 million borrowers with defaulted loans are set to re-enter repayment in good standing, but it’s unclear as to how the department plans to help keep borrowers from defaulting again. Default happens after 270 days without payment on a federal student loan.

Some key details have yet to be released, including:

• Whether payment would automatically reset to the previous amount. • How erasure of defaults will be reflected on credit reports. • When the affected borrowers’ first payment is due.Income-driven repayment fixes

Millions of borrowers are expected to benefit from one-time fixes that count past payments toward the 240 or 300 needed to qualify for income driven repayment forgiveness, the Department of Education announced on April 19. The fixes are also expected to cancel debt for at least 40,000 borrowers through Public Service Loan Forgiveness.

In 2023, federal student aid will also start displaying income-driven repayment payment counts on StudentAid.gov when borrowers log into their accounts. And the federal student aid office plans to allow more loan statuses, such as deferments and forbearances, to count toward income-driven repayment forgiveness moving forward. It’s unclear when those changes will go into effect or which loan statuses will be included.

Keep track of these dates

June 30: Deadline for the 2021-22 FAFSA.

July 1: New interest rates go into effect on federal student loans for the 2022-23 school year.

Aug. 31: Expiration date for the federal student loan payment pause. Most borrowers will need to confirm their auto-debit status in order to stay on auto-debit after Aug. 31, 2022.

Sept. 1: Delinquent and defaulted student loan borrowers will be brought back to good standing.

Oct. 1: Opening date for 2023-24 FAFSA.

Oct. 31: Expiration date for the Public Service Loan Forgiveness waiver.

December 2022: FedLoan Servicing will no longer service federal student loans. If FedLoan is your servicer, your loans will be transferred to a different servicer.

Feb. 28, 2023: Last day to self-certify income for income-driven repayment. To self-report, complete the IDR application, but in Step 2 (income information) select, “I’ll report my own income information.”

March 1, 2023: 

  • Unpaid interest will not capitalize during the payment pause and through March 1, 2023. If your grace period ends between March 13, 2020 and March 1, 2023, your interest will not be added to your balance.
  • Earliest month borrowers would need to recertify for income-driven repayment. If your account still shows your recertification date set before March 2023, it will be pushed out by one year.

June 30, 2023: Deadline for the 2022-23 FAFSA.

student loan forgiveness

Everything about student loan forgiveness has already been stated in the previous headings. You might want to scroll up to learn about student loan forgiveness.

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