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Are Student Loans Forgiven After 25 Years

Last Updated on November 13, 2022 by Fola Shade

Are student loans forgiven after 25 years? Student loans accounts for the largest consumer debts in America, and federal student loan debts have been rising every year. It’s very difficult to repay your student loan debt especially if you are not even earning money from your degree. In this article, we will discuss whether student loans are forgiven after 25 years and how that process works. If you are considering whether student loans are forgiven after 25 years, it’s important to understand first the difference between federal student loans and private student loans.

In this article, we will talk about questions such as; how do i apply for student loan forgiveness after 25 years, Biden student loan forgiveness, student loan forgiveness after 10 years and others.

Also available on our website are pieces of information relating to; student loan forgiveness after 20 years, federal student loans, federal student loan forgiveness, department of education student loan forgiveness and many more

Loan Forgiveness Student Loans: Are student loans being forgiven after 10  years? - ABTC

The answer to the question is “yes.” However, the process of getting your loans forgiven can be difficult.

Student loan debt can be forgiven after 25 years of successful payments, but you’ll have to make sure that you file the right paperwork and make sure that your income is low enough to qualify for the program. You might also have to pay taxes on any forgiven debt, depending on how much money you make.

The first step in getting your student loans forgiven is to check out your options with the Department of Education’s website. They offer a variety of repayment plans, including one where you pay nothing at all for 15 years if you work in public service jobs. You can also try to consolidate your loans into one manageable monthly payment or refinance them at a lower rate if those options are available in your area.

If none of these options work for you and your income is high enough that it doesn’t qualify for loan forgiveness under current regulations (see below), then there’s another way: filing an application with an “income-contingent” plan like Income-Based Repayment (IBR) or Pay As You Earn (PAYE). These plans cap monthly payments at 10% or 15% of your income

Student loans are forgiven after 25 years if you work in a nonprofit or public sector.

This means that you will be able to have your student loan forgiven if you work in government or non-profit organizations, or if you’re a full-time teacher at a public school.

Forgiveness on federal loans is not automatic and requires some paperwork. You’ll need to fill out the right forms and send them in to the Department of Education (DOE). The https://www.youtube.com/watch?v=3A_RyAk84oADOE will then review your application and let you know whether or not they are going to forgive any portion of your loan balance.

are student loans forgiven after 25 years

  • 20 percent of discretionary income, or
  • the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income.

Payments are recalculated each year and are based on your updated income, family size, and the total amount of your Direct Loans.

You must update your income and family size each year, even if they haven’t changed.

If you’re married, your spouse’s income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse.

Any outstanding balance will be forgiven if you haven’t repaid your loan in full after 25 years.

20 & 25 Year Student Loan Forgiveness Options

Do student loans get forgiven after 25 years? It depends on what types of student loans you have. Student loan forgiveness after 20 years or after 25 years is an option if you have certain federal student loans including:

  • Stafford loans
  • Grad PLUS loans
  • Consolidation loans

If you have qualifying loans, you must also sign up for an income-driven repayment plan. Depending on the specifics of your plan, your payment will be capped at a specific percentage of your income. Once you have made the required payments for either 20 or 25 years — depending, again, on which plan you choose — the remaining balance of your loans is forgiven.

Income Driven-Repayment Plans

Student loan forgiveness after 20 or 25 years is an option only if you choose an income-driven payment plan for your eligible federal loans.

There are four options for income-driven repayment that could potentially result in loan forgiveness after 20 years or after 25 years. These options include:

  • Revised Pay As You Earn (REPAYE): This limits payments to 10% of discretionary income. Any remaining loan balance will be forgiven after 20 years if all loans were for undergraduate study or after 25 years if you took out any graduate school loans.
  • Pay as You Earn (PAYE): This limits payments to 10% of your discretionary income but payments cannot exceed what you’d owe under the Standard Repayment Plan. Any remaining loan balance will be forgiven after 20 years.
  • Income-Based Repayment (IBR): If you’re a new borrower after July 1, 2014, this caps payments at 10% of discretionary income and payments cannot exceed the amount due under the Standard Repayment Plan. If you borrowed before July 1, 2014, payments are limited to 15% of discretionary income with the same payment cap. 20 year student loan forgiveness is available if you were a new borrower after July 1, 2014; otherwise, your remaining balance will be forgiven after 25 years.
  • Income-Contingent Repayment (ICR): This limits payments to the lesser of 20% of discretionary income or the amount you’d owe on a repayment plan with a fixed 12-year repayment period, adjusted based on income. Loan forgiveness is available after 25 years.

So what happens to student loans after 20 years or after 25 years? Any remaining loan balance that remains unpaid at the end of your repayment period will be forgiven and you will no longer have to repay it.

20 Year Student Loan Forgiveness Options

If you are interested in 20-year student loan forgiveness, you must choose one of the following repayment plans for your eligible federal student loans:

  • Revised Pay As You Earn: This offers loan forgiveness after 20 years but only if all of your loans were for undergraduate study. During the 20 years when you’re paying loans, monthly payments will be capped at 10% of discretionary income.
  • Pay As You Earn: This offers loan forgiveness after 20 years to all eligible borrowers. Your payment equals 10% of your discretionary income during the 20-year period but can’t be higher than what you’d owe under the standard repayment plan.
  • Income-based repayment: This offers 20 year student loan forgiveness if you were a new borrower after July 1, 2014. If you meet this criterion, your payments will equal 10% of discretionary income with a maximum payment equal to the amount you’d owe under the standard repayment plan.

25 Year Student Loan Forgiveness Options

If you are hoping for loan forgiveness after 25 years, your options include:

  • REPAYE if you have graduate school loans.
  • Income-Based Repayment if you have loans you took out before July 1, 2014.
  • Income Contingent Repayment: This requires you to make payments totaling the lesser of 20% of discretionary income or the payment that would be due on a loan with a fixed 12-year payoff schedule, adjusted for income.

So do student loans get forgiven after 25 years? Only if you have chosen one of these repayment plans for eligible federal loans.

Can Student Loans Be Forgiven After 10 Years?

If you are interested in a faster option to wipe out student loans instead of waiting for loan forgiveness after 20 years, there’s only one solution available. You will need to qualify for Public Service Loan Forgiveness.

To qualify for PSLF, you must work full-time for a qualifying non-profit or for the government. You must make a total of 120 on-time payments on an income-driven plan while remaining with an eligible employer during the entire repayment period.

This is your only option to have loans forgiven after such a short period of time. Otherwise, you will need to wait for 20 year loan forgiveness or loan forgiveness after 25 years. Public Service Loan Forgiveness is also available only for eligible federal loans, just as forgiveness based on completion of an income-driven plan is limited to loans issued by the Department of Education.

Tips for Paying Off Student Loans Faster

While 20 year student loan forgiveness or 25 year student loan forgiveness may seem attractive, the reality is that you will pay a lot of interest over many decades if you take this approach.

If possible, it may be better to explore ways to pay off student loans faster rather than hoping for loan forgiveness. Some of the different techniques to pay off student loans faster include:

  • Restricting borrowing only to loans you need to pay for your education
  • Choosing the payment plan with the shortest loan repayment timeline that’s affordable
  • Living on a budget that prioritizes loan repayment
  • Making payments as soon as possible, including paying interest while in school if you can
  • Making extra payments above the minimum
  • Claiming the Student Loan Interest Deduction
  • Looking for a job that offers student loan repayment assistance
  • Refinancing student loans

There are many benefits of refinancing student loans, which can make this technique the ideal option. You can choose a different repayment plan and hopefully reduce your interest rate. If you pay less in interest, each payment will reduce your balance by a larger amount so it becomes easier and cheaper to become debt-free.

Refinance Your Student Loans With ELFI

If you’re interested in paying student loans off ASAP and don’t want to wait decades for loan forgiveness, you can refinance your student loans with ELFI.*  ELFI offers affordable interest rates, a choice of refinance loan options, and you will have a personal loan advisor to guide you through the process of finding the right loan for you.

How To Apply For Student Loan Forgiveness

There are many options for student loan forgiveness and discharge, but each has different eligibility restrictions and a different application process. Learn how to apply for student loan forgiveness.

Document with title student loan forgiveness.
Borrowers want to know how to apply for student loan forgiveness. GETTY

Student loan forgiveness and discharge options include:

  • Public Service Loan Forgiveness
  • Teacher Loan Forgiveness
  • Loan Forgiveness for Volunteering
  • Total and Permanent Disability Discharge
  • Death Discharge
  • Closed School Discharge
  • Borrower Defense to Repayment Discharge
  • False Certification Discharge
  • Unpaid Refund Discharge
  • Discharge after 20 or 25 years in an income-driven repayment plan

[This article will be updated when new loan forgiveness programs are announced.]

Some student loan forgiveness is automatic. Other student loan forgiveness requires the borrower to submit an application form. Application forms can be obtained by contacting the loan servicer or by calling the U.S. Department of Education’s Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

There is no fee to apply for loan forgiveness. You do not need to pay anyone for help in applying for loan forgiveness.

The American Rescue Plan Act of 2021 made all student loan forgiveness and student loan discharge tax-free through December 31, 2025. This legislation is likely to be extended or made permanent before it sunsets.

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) cancels the remaining debt on eligible student loans after the borrower makes 120 qualifying monthly payments in an eligible repayment plan while working full-time in an eligible public service job.MORE FROMFORBES ADVISORBest Tax Software Of 2022Best Tax Software For The Self-Employed Of 2022Income Tax Calculator: Estimate Your Taxes

The entire remaining debt is forgiven, including the outstanding interest and principal balance. If the borrower has made more than 120 qualifying payments, the extra payments will be refunded to the borrower.

The 120 qualifying payments do not need to be consecutive. It takes at least 10 years to qualify, since borrowers cannot make 120 qualifying payments in less than 10 years.

Payments that were paused during the pandemic under the payment pause and interest waiver count toward forgiveness.

Deferments and forbearances count toward loan forgiveness for borrowers who suspended repayment while serving on active duty in the U.S. Armed Forces. For example, the military service deferment counts toward PSLF.

Eligible public service jobs include working directly for a government agency (not indirectly through a government contractor), working for a 501(c)(3) tax-exempt charitable organization or working in public interest law for a non-profit organization.

Eligible loans include loans in the William D. Ford Federal Direct Loan Program (Direct Loans). Loans in the Federal Family Education Loan Program (FFELP) and Federal Perkins Loans may be made eligible by consolidating them into a Federal Direct Consolidation Loan. Borrowers can check their loan types using the Aid Summary tool, which is available at StudentAid.gov/aid-summary.

Eligible repayment plans include Standard Repayment and the four income-driven repayment plans: Income-Contingent Repayment (ICR), Income-Based Repayment (IBR), Pay-As-You-Earn Repayment (PAYE) and Revised Pay-As-You-Earn Repayment (REPAYE).

The Temporary Expanded Public Service Loan Forgiveness (TEPSLF) program provides $700 million in funding to forgive eligible student loans that were repaid in the graduated and extended repayment plans, if the last year of payments are at least as much as they would have been under an income-driven repayment plan.

To apply for PSLF and TEPSLF, borrowers should use the PSLF Help Tool, which is available at StudentAid.gov/PSLF. This tool will confirm that the borrower is working for an eligible employer. It will also enable the borrower to file an Employment Certification Form (ECF) or apply for public service loan forgiveness. (Borrowers should file an ECF every year and whenever they change employers, to confirm that they are on track toward loan forgiveness and to create a record of qualifying payments.)

A temporary waiver is available through October 31, 2022 to allow payments to count toward PSLF regardless of loan program or repayment plan. Late payments and partial payments will count toward loan forgiveness. Borrowers must file an Employment Certification Form (ECF) or apply for loan forgiveness before the deadline. Federal Parent PLUS loans are not eligible for the waiver.

The waiver also allows monthly payments on FFELP and Federal Perkins loans to count toward loan forgiveness, if the loans are consolidated into a Federal Direct Consolidation Loan and the borrower files an ECF or applies for loan forgiveness before the deadline. It can take up to 45 days to consolidate federal student loans, so borrowers should not procrastinate. The PSLF Help Tool should be updated by the end of the year to recognize FFELP and Federal Perkins Loans.

Teacher Loan Forgiveness

College graduates who teach full-time in a low-income elementary or secondary school (or educational service agency) for five years may qualify for up to $17,500 in loan forgiveness on their subsidized and unsubsidized Federal Stafford Loans. Both FFELP and Direct Loans can qualify.

Only people who were new borrowers as of October 1, 1998 are eligible.

Eligibility is limited to highly qualified teachers. Highly qualified teachers have at least a Bachelor’s degree, full state certification as a teacher, and certification or licensing on a permanent basis. Elementary school teachers must also have passed a rigorous state test of knowledge and teaching skills in reading, writing and mathematics. Middle and secondary school teachers must also have passed a rigorous state test in each of the academic subjects in which the teacher is teaching or have an academic major or graduate degree or advanced certification in each of the academic subjects in which the teacher is teaching. Rigorous state tests can include state-required certification or licensing tests.

Math, science and special education teachers are eligible for up to $17,500 in student loan forgiveness. Other teachers may receive up to $5,000 in student loan forgiveness.

Teacher Loan Forgiveness is stackable with the Public Service Loan Forgiveness program. The same period of teaching service, however, cannot qualify for both loan forgiveness programs.

Borrowers who are in default are not eligible unless they have made satisfactory repayment arrangements with the holder of the loan.

To apply for Teacher Loan Forgiveness, submit a Teacher Loan Forgiveness Application to the loan servicer or servicers. The chief administrative officer at the school to educational service agency must complete the certification section of the application form.

Loan Forgiveness for Volunteering

Volunteers with AmeriCorps may earn Segal AmeriCorps Education Awards which can be used to repay their federal student loans and state student loans. The education awards are worth up to the maximum Federal Pell Grant amount. There is a seven-year limit on using the education awards. Volunteers age 55 and older may transfer their education awards to their children or grandchildren.

Volunteers with the Peace Corps may receive a transition payment (readjustment allowance) of more than $10,000 after completion of two years of service.

Both the education awards and transition payments may be used to repay federal student loans. These lump sum payments count toward up to 12 qualifying monthly payments for Public Service Loan Forgiveness.

However, some borrowers may be better off making payments under an income-driven repayment plan. These payments can be as low as $0 and still count toward Public Service Loan Forgiveness. Volunteering full-time with AmeriCorps or Peace Corps qualifies as full-time employment in an eligible public service job.

The U.S. Department of Education publishes a guide to repaying federal student loans for Peace Corps volunteers.

Recipients of the Segal AmeriCorps Education Award may apply the award to their student loans through the My AmeriCorps portal. Choose “Create Education Award Payment Request” and then specify “Loan Payment” as the Payment Type.

Borrowers should contact the PSLF loan servicer if they want to apply their education awards or transition payments as a lump sum payment that qualifies for Public Service Loan Forgiveness. Include the date and amount of the transition payment and the amount that was applied as a lump sum payment toward your student loans when filing an Employment Certification Form (ECF). Also include a statement that the lump sum payment was from a transition payment for service in the Peace Corps and that the lump sum payment should count toward PSLF.

Total and Permanent Disability Discharge

Federal education loans may be discharged if the borrower has a Total and Permanent Disability (TPD).

Note that Federal Parent PLUS loans can be discharged if the parent borrower becomes disabled, but not if the student becomes disabled.

There are three ways of demonstrating a total and permanent disability:

  • The U.S. Department of Veterans Affairs (VA) determines that the borrower is unemployable because of service-connected disabilities that are 100% disabling.
  • The borrower qualifies for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) from the Social Security Administration (SSA) and the next disability review will be 5 or more years after the date of the most recent disability status determination.
  • A U.S. doctor certifies that the borrower is unable to engage in substantial gainful activity due to a physical or mental impairment that has lasted or is expected to last for at least 5 years or that can be expected to result in death.

The U.S. Department of Education performs a data match with the VA and SSA to identify borrowers who are eligible for a TPD discharge and will discharge their federal education loans automatically.

To apply for a TPD discharge based on a doctor’s certification, the doctor must sign the TPD Discharge Application.

The TPD Discharge Application is available on the DisabilityDischarge.com website as a printable PDF form. There is also an online Application Wizard that can be completed instead of the PDF version. Borrowers can request that an application form be mailed to them by calling 1-888-303-7818, by faxing 1-303-696-5250 or by sending email to [email protected]

If the borrower’s loans are discharged based on a doctor’s certification or SSA determination, there is a three-year post-discharge monitoring period. There is no post-discharge monitoring period if the loans are discharged based on a VA determination. During the post-discharge monitoring period, the borrower’s annual earnings from employment must be less than 100% of the poverty line for a family of two and the borrower must not get a new federal education loan or TEACH Grant. (A pending proposal will eliminate the post-discharge monitoring period.)

Some lenders of private student loans provide a disability discharge that is similar to the TPD discharge available for federal student loans. Contact the lender to ask whether they offer a disability discharge. If the lender does not provide a disability discharge, ask about their compassionate review process.

Death Discharge

Federal education loans are discharged if the borrower dies. Federal Parent PLUS loans may also be discharged if the student dies.

To apply for a death discharge, provide the loan servicer with proof of death. Proof of death includes an original or certified copy of the death certificate or a photocopy of the death certificate.

Some lenders of private student loans will cancel the borrower’s loans if the borrower dies. Contact the lender for more information. If the lender does not offer a death discharge, ask about their compassionate review process.

Close School Discharge

If the student’s college closed while the student was enrolled or within 180 days of the student’s withdrawal, the student may be eligible for a closed school discharge of their federal education loans, including federal student loans and Federal Parent PLUS loans.

If the student is able to complete their program through a teach-out program or at another college, they are ineligible for the closed school discharge. If the student transfers their credits to another college, they may be ineligible for the closed school discharge.

To apply for a closed school discharge, submit a Closed School Discharge Form to the loan servicer after confirming that the college is listed on the U.S. Department of Education’s list of closed schools.

If a borrower is ineligible for a closed school discharge, they may be eligible for a borrower defense to repayment discharge.

Borrowers should also check whether their state has a tuition recovery fund or performance bond.

Borrower Defense to Repayment Discharge

Borrowers may be eligible for discharge of their federal education loans if their college engaged in fraudulent, deceptive or illegal practices concerning their student loans or education under federal or state law. Examples include providing false information about college costs, accreditation, job placement statistics or the ability to transfer credits.

Borrowers who qualify for the borrower defense to repayment discharge may also qualify for a refund of some or all of the payments they made on the loans.

To apply for a borrower defense to repayment discharge, submit an application on the U.S. Department of Education’s website.

False Certification and Unpaid Refund Discharges

If the student’s college certified the student as eligible for federal student aid, but the student is ineligible for employment in the occupation for which they are being trained due to age, criminal record, or physical or mental conditions, they may be eligible for a false certification discharge (Disqualifying Status Discharge).

If the student’s college signed their name to a loan promissory note without the student’s authorization, the student’s federal education loans may be eligible for a false certification discharge (Unauthorized Signature Discharge). Note that the student must not have received the loan proceeds, had the loan proceeds applied to charges owed by the student to the college, or otherwise benefited from the loan.

If the student did not have a high school diploma or GED, the student’s federal education loans may be eligible for a false certification discharge (Ability to Benefit Discharge).

If the student is a victim of identity theft in connection with their federal education loans, they may be eligible for the Identity Theft Discharge, sometimes called the Forgery Discharge.

When a student withdraws from a college, some or all of their federal education loans borrowed during the academic term must be returned to the U.S. Department of Education. If the college did not do this, the student may be eligible for an Unpaid Refund Discharge of their federal education loans.

To apply for a false certification discharge, submit the appropriate form to the loan servicer.

Discharge after 20 or 25 Years in an Income-Driven Repayment Plan

After 20 or 25 years in an income-driven repayment plan, the remaining debt is forgiven.

  • 25 years under Income-Contingent Repayment (ICR)
  • 25 years under Income-Based Repayment (IBR)
  • 20 years under Pay-As-You-Earn Repayment (PAYE)
  • 20 years under Revised Pay-As-You-Earn Repayment (REPAYE) for borrowers who have only loans for undergraduate school
  • 25 years under Revised Pay-As-You-Earn Repayment (REPAYE) for borrowers with any federal loans for graduate or professional school

Time spent in an economic hardship deferment counts toward the 20 or 25-year repayment term in an income-driven repayment plan, but not toward Public Service Loan Forgiveness, according to the current regulations. (This may change.)

The payment pause and interest waiver counts toward the 20 or 25-year forgiveness.

Time spent in other deferments or forbearances does not count toward the 20 or 25-year forgiveness. Likewise, periods of delinquency and default does not count toward loan forgiveness. Any payments made on a defaulted loan, whether voluntary or involuntary, do not count toward the 20 or 25-year forgiveness period.

The forgiveness will be automatic. Borrowers do not need to apply for the 20 or 25-year forgiveness, but must continue repaying their loans until they are notified that the remaining balance has been forgiven. Any excess payments will be refunded to the borrower.

  • Pressure has been mounting for Biden to cancel student debt, as he pledged during his campaign. 
  • Last month, he said his decision on relief would come in a matter of weeks. 
  • While Republican opposition mounts, a few developments hint at the kind of relief borrowers might see.

Despite President Joe Biden’s campaign pledge to cancel $10,000 in debt per borrower, he’s been largely silent on the issue through his presidency.

But there may be a light at the end of tunnel for more than 40 million Americans with federal student loans.

In late April, Biden said he’d “have an answer” on relief in the coming weeks. That was a year after Biden asked the Department of Education to prepare a memo outlining his legal power to cancel student debt. Insider found that the Education Department created and circulated the memo, but Biden has not revealed its contents. 

Instead of relief for all borrowers,  so far, Biden has focused on targeted groups like borrowers with disabilities and those defrauded by for-profit schools, who have seen more than $9 billion in collective debt relief. He also extended the pandemic pause on student loan payments four times since taking office, following two from former President Donald Trump. 

Democrats are pressuring him to relieve borrowers in fear of low midterm turnout, with some progressives urging him to cancel at least $50,000 for those in debt. Meanwhile, Republicans senators have introduced bills intended to prohibit cancellation.

Biden’s approval rating among the young people who helped get him elected is tanking. With the payment pause set to expire after August 31, Americans are on pins and needles to find out what Biden will do. 

Here’s everything we know so far.

In April, Biden said he would announce a decision or extend the payment pause by September, when the current payment pause is up.

biden
President Joe Biden speaks to reporters in the Oval Office of the White House on May 9, 2022. 

In April, Biden gave himself until the end of August to announce a decision regarding student debt cancellation, or to extend the payment pause he’d already continued four times. 

“Between now and August 31, it’s either going to be extended again or we’re going to make a decision, as Ron referenced, about canceling student debt,” White House Press Secretary Jen Psaki told Pod Save America referring to Ron Klain, Biden’s chief of staff, who also told the podcast in March that leading up to the prior May 1 payment restart date, the president would either extend the pause again — which he did — or decide how he could act on student debt using executive action.

Later that month, Biden shortened his own timeline, saying he’ll ‘have an answer’ on student-loan forgiveness in the coming weeks.

Joe Biden
President Joe Biden laughs during the White House Correspondents’ Association dinner in Washington, DC, on April 30, 2022. 

Since Psaki revealed the end-of-August deadline, Biden truncated the timeline for the announcement to be a few weeks from April. 

“I’m in the process of taking a hard look at whether there will be additional debt forgiveness,” Biden said at the end of the month. “And I’ll have an answer for that in the next couple of weeks.” 

Republicans introduce their first bill to bar Biden from cancelling debt broadly.

John Thune, Mitch McConnell
Sen. John Thune alongside Senate Minority Leader Mitch McConnell at a news conference. 

Following Biden’s hints that an announcement on forgiveness could be coming soon, GOP Sens. John Thune, Richard Burr, Mike Braun, Bill Cassidy, and Roger Marshall introduced the Stop Reckless Student Loans Action Act, which would end the payment pause and bar Biden from canceling student debt broadly.

“As Americans continue to return to the workforce more than two years since the pandemic began, it is time for borrowers to resume repayment of student debt obligations,” Thune said in a statement. “Taxpayers and working families should not be responsible for continuing to bear the costs associated with this suspension of repayment. This common-sense legislation would protect taxpayers and prevent President Biden from suspending federal student loan repayments in perpetuity.”

Shattering progressives’ hopes, Biden confirmed in April that he won’t be forgiving $50,000 in debt per borrower.

President Biden at State of the Union.
President Biden at State of the Union. 

Democratic senators such as Chuck Schumer and Elizabeth Warren have made it clear that for many progressives, $50,000 in forgiveness per borrower is the number to strive for. 

“Canceling $50,000 of student-loan debt would give 36 million Americans permanent total relief,” Warren said during a town hall in January. “That would be the end of their debt burden. And it would aid millions more by significantly reducing the principal on their debt.”

But at the end of April, Biden shattered progressives’ hopes, saying that although he is considering debt forgiveness as promised, it will not be for as high as $50,000 per borrower. 

“I am considering dealing with some debt reduction, I am not considering $50,000 debt reduction,” he told a reporter last month. It marked one of his most decisive comments to date on what he is considering when it comes to canceling student debt broadly. 

Biden considers excluding high earners from debt relief, possibly excluding people who make more than $125,000 or couples making $250,000.

President Joe Biden is planning to attend the White House Correspondents Association Dinner with 2,600 journalists, politicians, and celebrities.
Biden considered income caps on student debt relief while on the campaign trail, but that may not be what the final policy looks like. 

Top Biden aides are looking at limiting student debt relief to people earning less than $125,000 to $150,000, or $250,000 to $300,000 for couples that file joint taxes, people familiar with the matter told The Washington Post. But they said that Biden hadn’t made a final decision. 

“There’s different proposals floating around the administration about how to structure this,” one person told the Washington Post.

But as Psaki later noted, while income caps are in line with what Biden considered on the campaign trail, that may not be what the final policy looks like. Income caps could also pose problems for many Americans, as doing so means setting up a layer of income verification before the government grants debt relief. And it would mean that borrowers would miss out on relief if they don’t know to sign up or apply for it, Politico reported. 

Three Democratic senators make a last ditch effort to urge Biden to go big on relief.

Schumer and Warren
Senate Majority Leader Charles Schumer, D-N.Y., and Sen. Elizabeth Warren, D-Mass., are seen after the Senate Democrats luncheon in the U.S. Capitol on Tuesday, October 19, 2021. 

Three Democratic senators — Elizabeth Warren, Chuck Schumer, and Raphael Warnock — want Biden’s student-loan relief to be expansive, and are requesting him to hold off on implementing any loan forgiveness through executive action until they can arrange a meeting with him, sources told Politico last week. 

Following Biden’s comments that he is not considering $50,000 in debt cancellation for federal borrowers, something that Warren, Warnock, and Schumer have pushed for repeatedly, the progressive senators reportedly moved to intervene. 

“President Biden told the senator months ago he wanted to meet about this issue, and the senator wants to make sure the president hears why Georgians want strong debt relief before the White House takes any action,” a Warnock spokesperson told Politico.

A former Obama lawyer says Biden ‘likely does not’ have the legal standing to cancel student debt broadly.

Biden Obama
Then-Democratic presidential candidate Barack Obama listens as his vice presidential running mate, then-Sen. Joe Biden, speaks at a rally in front of the Old State Capitol in Springfield, Ill., on August 23, 2008. 

The contents of the Education Department’s memo outlining whether or not the president has the authority to unilaterally cancel student debt remain private to Biden’s team, leaving others to speculate over the last year. 

This month, a Wall Street Journal exclusive found that Charlie Rose, a top lawyer in former President Barack Obama’s Education Department, is not confident that it’s legal. 

According to a legal analysis the Journal obtained, Rose said that canceling student debt for every borrower without tailoring the relief toward each borrower’s individual needs could be overruled in court and leave the administration at risk of being sued by student-loan companies.

“If the issue is litigated, the more persuasive analyses tend to support the conclusion that the Executive Branch likely does not have the unilateral authority to engage in mass student debt cancellation,” Rose wrote. 

Republicans are starting to worry Biden might actually forgive some student debt.

Rep. Virginia Foxx
Rep. Virginia Foxx 

Republicans aren’t happy about Biden’s potential student loan action. 

Virginia Foxx, a North Carolina representative, was among congressional Republicans who have voiced their disapproval of student debt cancellation recently.

“The Biden administration is trying once again to save its tanking poll numbers by writing a blank check to student loan borrowers using Americans’ pocketbooks,” she said in an op-ed for Fox News. 

A group of Republicans led by Mitt Romney introduced a bill that would stop Biden from cancelling debt broadly.

Republican Sen. Mitt Romney of Utah outside the Senate chamber on December 7, 2021.
Republican Sen. Mitt Romney of Utah outside the Senate chamber on December 7, 2021. 

Senator Mitt Romney and several of his Republican colleagues introduced a bill that would bar the Biden administration from broadly canceling student-loan debt this week, prohibiting him from even partially forgiving borrowers’ outstanding balances. 

The bill would include exemptions for student-loan forgiveness, cancelation, and repayment programs that are already in effect, such as the Public Service Loan Forgiveness and Teacher Loan Forgiveness programs.

The bill is unlikely to become law anytime soon with a 50-50 Senate, a Democratic-controlled House, and Biden in the Oval Office, but the message is clear. 

student loan forgiveness after 10 years

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

There are some requirements that need to be met

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

There are many people in the United States who may feel bogged down by their student loan debt, but the Public Service Loan Forgiveness (PSLF) program was brought in during 2007 to help individuals pay it off in a quicker and easier manner.

As part of the federal program, any eligible borrowers are able to have their loans cleared after 10 years if they meet some qualifying requirements.

Student debt help

In order to try and help alleviate some of the student loan debt that thousands of borrowers have, the Department of Education is looking to take measures in the next few months to ease the pressures on many post-graduate Americans.

If you want to find out more information about this, the PSLF Help Tool is available to help individuals understand more about the PSLF, work out whether your employer qualifies for the program, and it explains some of the things that need to happen in order to get the PSLF.