Over 43 million Americans carry almost $1.6 trillion in student debt collectively. For borrowers facing financial hardship, applying for federal student loan forgiveness could provide a lifeline – but navigating eligibility requirements can be tremendously confusing.
This detailed walkthrough aims to clarify all aspects of qualifying for and completing loan forgiveness applications. Follow these 13 key steps to pursue the debt relief you may desperately need.
Student Loan Forgiveness Basics
Before diving into the application process, understand what federal loan forgiveness entails…
What is Student Loan Forgiveness?
In certain situations, programs exist allowing for discharge of remaining federal loan balances after meeting criteria. Some options cancel debt completely while others provide percentage-based relief.
Types of Federal Forgiveness Programs
Common programs include Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, Total Permanent Disability Discharge, and more. Each have particular requirements around employment, payments, and hardship circumstances.
Eligible Federal Loans
Forgiveness and discharge programs only apply to federal direct loans and FFEL loans owned by ED. Private student loans issued by banks/credit unions do not qualify.
Understand the Forgiveness Programs
The two main federal student loan forgiveness programs are:
- Public Service Loan Forgiveness (PSLF)Â – Forgives loans after 10 years (120 monthly payments) of full-time work for a qualifying government organization or nonprofit.
- Teacher Loan Forgiveness – Forgives up to $17,500 for teachers in low-income schools after 5 consecutive years of teaching.
Other potential forgiveness options include total permanent disability discharge, school closure discharge, false certification discharge, and unpaid refund discharge. Each program has specific eligibility criteria. Review the forgiveness programs to understand which you may qualify for based on your employment, disability status, or school situation.
Pros and Cons of Student Loan Forgiveness
Pros | Cons |
| Eliminates some or all student debt | Limited to certain borrowers, careers, and loans |
| Improves cash flow | Requires years of qualifying work or payments |
| Allows more money to save or spend elsewhere | Forgiven amount may be taxed as income |
| Rewards public service careers | Program restrictions and poor administration can limit accessibility |
Submit the Appropriate Application
Once you’ve identified a potential forgiveness program, work with your loan servicer to get the right application form. For PSLF, you will need to submit an Employment Certification Form.
Make sure your employer qualifies before applying. For Teacher Loan Forgiveness, complete the Teacher Loan Forgiveness Application. Double check requirements to avoid errors that could lead to denial.
Provide requested employment details and documentation. Submit any necessary supporting documents. Follow up to confirm receipt and make sure you’re on track for approval based on program guidelines. Don’t assume you’re approved until you receive confirmation.
How to Target Loan Forgiveness Through Your Job
For public service employees, completing program obligations related to your years of service is key…
Qualify for Public Service Loan Forgiveness
Making 120 qualifying payments over 10 years while working full-time for a PSLF-eligible government agency or non-profit results in full balance discharge.
Get Teacher Loan Forgiveness
If you teach full-time at a low-income school district for 5 consecutive years and meet other rules, you can have a portion of debt forgiven.
Identify If You Have Special Conditions For Discharge Eligibility
Besides employment channels, student loans may qualify for forgiveness or discharge under certain difficult personal circumstances…
Total and Permanent Disability Discharge Conditions
Borrowers unable to engage in employment for five years or longer due to disability may apply for discharge.
Death Discharge Upon Borrower Passing
Upon sufficient proof of the borrower’s death, outstanding federal education debt is cancelled.
School-Related Discharge Justification
If your institution severely misled you or engaged in misconduct related to your loans, inform the Education Department via an application.
Forgiveness Programs by Occupation
- Teachers – Up to $17,500 after 5 years of service under Teacher Loan Forgiveness. More through PSLF.
- Government/Non-Profit – Full balance forgiveness after 120 payments over 10 years under PSLF.
- Nurses/Doctors – Up to $120,000 over 3 years under Students to Service Program or other state/federal programs.
- Military Members – Up to $65,000 over 3 years through Army, Navy, etc loan repayment.
- Lawyers – Up to $60,000 over 3 years under John R. Justice Student Loan Repayment.
Other Forgiveness Opportunities
- Federal income-driven repayment plans
- AmeriCorps, Peace Corps, and volunteer programs
- Employer student loan repayment assistance
- State loan repayment assistance programs (LRAPs)
- Disability, school closure, and other discharges
Make Qualifying Payments and Get Confirmation
Keep making loan payments as scheduled while your forgiveness application is processed. You must make all contracted payments on time per program rules to stay on track for approval.
Once your servicer confirms your balance is forgiven, you can stop making payments. Keep records of all approvals and account statements showing your forgiven balance.
Frequently Asked Questions
What loans are eligible for forgiveness programs?
Most forgiveness programs only apply to Federal Direct Loans. FFEL Program loans or Perkins Loans may qualify if consolidated into a Direct Consolidation Loan. Private loans are generally not eligible.
How long does it take to qualify for loan forgiveness?
For PSLF you’ll need 10 years (120 monthly payments) of full-time work for a qualifying employer. Teacher Loan Forgiveness requires 5 consecutive years of teaching service. Processing time for approved applications varies.
Can I apply for multiple loan forgiveness programs?
If you may qualify for multiple programs, understand how they interact first. For example, teachers can do PSLF or TLF but the same years of service cannot count for both. Evaluate which program would provide the most forgiveness based on your situation.
What if my forgiveness application is denied?
If denied, you must continue repaying your loans per the terms of your promissory note. Verify the reason for denial. If you believe it was mistaken, appeal the decision. Make sure you meet all eligibility criteria before reapplying.
Can private student loans qualify for forgiveness?
No, private student loans are not eligible for federal forgiveness programs. They may offer separate hardship programs but your balance will not be forgiven. As an alternative, consider refinancing private loans to improve the interest rate or payment.
