How to Get Federal Student Loans Forgiven

Finance Oct 7, 2023

Federal student loan forgiveness is a critical tool for helping borrowers repay their loans and achieve financial stability. As of 2023, over 43 million Americans have federal student loan debt, totaling over $1.6 trillion. This debt crisis has made it difficult for borrowers to buy homes, start businesses, and save for retirement.

The purpose of this blog post is to provide guidance on how to get federal student loans forgiven. We will discuss the different types of federal student loan forgiveness programs available, eligibility criteria, and application processes.

Types of Federal Student Loan Forgiveness Programs

There are a number of different federal student loan forgiveness programs available, each with its own eligibility criteria and benefits. Here is a brief overview of some of the most popular programs:

Public Service Loan Forgiveness (PSLF) Program: This program forgives the remaining balance of your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying public service employer.
Teacher Loan Forgiveness Program: This program forgives up to $17,500 in federal student loan debt for highly qualified teachers who teach full-time for five consecutive years in a low-income school.
Perkins Loan Cancellation Program: This program cancels a portion of your Perkins Loan balance each year that you work full-time in a qualifying public service job.
Income-Driven Repayment (IDR) Plans: IDR plans cap your monthly student loan payments at a percentage of your discretionary income. After 20 or 25 years of making payments under an IDR plan, the remaining balance of your loans may be forgiven.

https://studentaid.gov/articles/student-loan-forgiveness/

Public Service Loan Forgiveness (PSLF) Program

The PSLF Program is one of the most popular federal student loan forgiveness programs. To qualify for PSLF, you must meet the following requirements:

Have Direct Loans or consolidate your federal student loans into Direct Loans
Be employed full-time by a qualifying public service employer
Make 120 qualifying monthly payments under a qualifying repayment plan

Qualifying public service employers include federal, state, local, and tribal governments, as well as non-profit organizations that provide public services. You can find a list of qualifying employers on the Federal Student Aid website.

To enroll in PSLF, you must complete the PSLF Help Tool and submit it to your loan servicer. You should also recertify your employment every year to ensure that you are still on track to qualify for forgiveness.

It is important to note that PSLF is not a perfect program. There have been many complaints from borrowers about the difficulty of qualifying and the slow processing of forgiveness applications. However, PSLF can be a great option for borrowers who work in public service and want to have their loans forgiven.

Teacher Loan Forgiveness Program

The Teacher Loan Forgiveness Program is another popular federal student loan forgiveness program. To qualify for teacher loan forgiveness, you must meet the following requirements:

Have Direct Loans or consolidate your federal student loans into Direct Loans
Be employed full-time as a highly qualified teacher at a low-income school or educational service agency
Teach for five consecutive years

Highly qualified teachers must meet the following requirements:

Have a bachelor's degree
Be state certified to teach
Teach in a core academic subject area

Low-income schools are defined as schools where at least 40% of the students are eligible for free or reduced-price lunch. Educational service agencies are non-profit organizations that provide services to low-income schools.

To apply for teacher loan forgiveness, you must submit an application to the Federal Student Aid office. You will need to provide documentation of your employment and teaching experience.

Income-Driven Repayment (IDR) Plans

IDR plans are another option for borrowers who may not be eligible for other federal student loan forgiveness programs. IDR plans cap your monthly student loan payments at a percentage of your discretionary income. After 20 or 25 years of making payments under an IDR plan, the remaining balance of your loans may be forgiven.

There are four different IDR plans available:

Revised Pay As You Earn (REPAYE) Plan
Pay As You Earn (PAYE) Plan
Income-Based Repayment (IBR) Plan
Income-Contingent Repayment (ICR) Plan

Each IDR plan has its own eligibility criteria and benefits. To learn more about IDR plans, you can visit the Federal Student Aid website.

Conclusion

Federal student loan forgiveness can be a great option for borrowers who want to have their loans forgiven. However, it is important to understand the eligibility criteria and application process for each program. If you have questions, you should contact your loan servicer or the Federal Student Aid office.

Additional Information

Here are some additional things to keep in mind about federal student loan forgiveness:

Not all federal student loans are eligible for forgiveness. Only Direct Loans and Perkins Loans are eligible for most federal student loan forgiveness programs. If you have other types of federal student loans, you may need to consolidate them into Direct Loans to be eligible.
You must continue to make your loan payments while you are pursuing forgiveness. Even if you qualify for a forgiveness program, you must continue to make your loan payments on time and in full. If you default on your loans, you will no longer be eligible for forgiveness.
It may take several years to qualify for forgiveness. The PSLF Program and the Teacher Loan Forgiveness Program both require borrowers to make payments for several years before their loans are forgiven. IDR plans can also take 20 or 25 years to forgive the remaining balance of your loans.

Tips for Success

Here are some tips for successfully pursuing federal student loan forgiveness:

Understand the eligibility criteria and application process for each program. Take the time to read the Federal Student Aid website and other resources to learn more about the different forgiveness programs available.
Enroll in a forgiveness program as soon as possible. The earlier you enroll in a forgiveness program, the sooner you will start making progress towards forgiveness.
Make your loan payments on time and in full. Defaulting on your loans will disqualify you from most forgiveness programs.
Keep track of your progress. Create a system for tracking your loan payments and employment history. This will help you ensure that you are on track to qualify for forgiveness.

If you have any questions about federal student loan forgiveness, please contact your loan servicer or the Federal Student Aid office.