Why is my loan eligible for direct forgiveness?

Your loan may be eligible for forgiveness primarily through the Public Service Loan Forgiveness (PSLF) program, an Income-Driven Repayment (IDR) plan, or due to other specific circumstances like total and permanent disability or school closure.

What makes you eligible for loan forgiveness?

To qualify for federal student loan forgiveness, you generally need to work in public service for PSLF (Public Service Loan Forgiveness) after 120 qualifying payments or make payments on an Income-Driven Repayment (IDR) plan for 20-25 years, with remaining balances forgiven; key requirements include working for government/non-profits, having Direct Loans, using specific payment plans, and making consistent payments, but remember these programs are for federal loans and require diligent tracking, with PSLF needing annual forms and IDR forgiveness often automatic after time. 

What loans are not eligible for loan forgiveness?

Loans you received under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, or any other student loan program are not eligible for PSLF. To find out which types of loans you have, log in to My Aid on StudentAid.gov using your account username and password.

How do I know if my student loans will be forgiven?

To know if your federal student loans will be forgiven, check your eligibility for programs like Public Service Loan Forgiveness (PSLF) (10 years for public servants) or Income-Driven Repayment (IDR) forgiveness (20-25 years of payments), by logging into your StudentAid.gov account and using the PSLF Help Tool to track progress and employer eligibility; your loan servicer will also notify you as you approach forgiveness, but keep your contact info updated. 

How to get Direct Loans forgiven?

Public Service Loan Forgiveness (PSLF)

The PSLF Program forgives the remaining balance on your Direct Loans after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.

THIS UK IMMIGRATION POLICY CHANGE AFFECTS SKILLED WORKER VISA APPLICATION | From 8th January 2026

How much is the monthly payment on a $70,000 student loan?

A $70,000 student loan's monthly payment varies widely, from roughly $750 to over $6,000, depending on interest rates (APR) and repayment term, with a 10-year loan at 5% being around $742/month, while a 1-year term at 14% jumps to $6,285/month; federal loans offer income-driven plans (IDR) for lower payments, but private loans depend heavily on credit score and term length.
 

What is the new rule for student loan forgiveness?

The latest student loan forgiveness rules focus heavily on tightening Public Service Loan Forgiveness (PSLF) eligibility, restricting it for government/nonprofit workers whose employers engage in "substantial illegal purpose," effective July 2026, while also ending some pandemic-era flexibilities and potentially phasing out the SAVE Plan and other IDR plans after 2025/2028, bringing more tax consequences for forgiveness. Key changes include limiting PSLF to genuinely public-serving roles, ending economic hardship forbearance counts for PSLF, and a potential shift for some borrowers to taxable forgiveness in 2026 unless they switch IDR plans by December 2025. 

What are the income requirements for forgiveness?

Does my income level determine my eligibility for Public Service Loan Forgiveness (PSLF)? There is no income requirement to qualify for PSLF.

Will I be notified if I qualify for student loan forgiveness?

PSLF Form After Making 120 Qualifying Payments

If your PSLF form is approved for forgiveness, then you'll be notified that the entire remaining balance of your eligible Direct Loans will be forgiven, including all outstanding interest and principal.

What is the 7 year rule on student loans?

The "7-year rule" for student loans mostly refers to when negative marks, like defaults, fall off your credit report, typically 7 years after the first missed payment, but it's not a discharge from owing the debt; the debt itself often remains, especially for federal loans which have no statute of limitations and can be pursued indefinitely. In bankruptcy, the rule means federal student loans are generally dischargeable only if it's been over seven years since you stopped being a student, though private loans have different rules and federal loans are extremely difficult to discharge. 

Is $40,000 in student debt bad?

According to recent research from the Education Data Initiative, it costs the average student $38,270 per year to attend a four-year university in the United States. Right now, the average student loan debt in the U.S. is nearly $40,000 but many students borrow much more.

Do parents who make $120000 still qualify for FAFSA?

There is no income cap for FAFSA. Even high-income students should apply to access federal loans and some merit aid. Aid eligibility is based on your Student Aid Index (SAI) and cost of attendance, not just income alone. For the 2025-26 FAFSA, dependent students can earn up to $11,510 before it affects aid eligibility.

How do I know if I qualify for debt forgiveness?

There's no one-size-fits-all rule for qualifying, but most lenders consider debt forgiveness a last resort. To improve your chances, you'll typically need to show proof of financial hardship—such as job loss, medical issues, or other major life disruptions—that make full repayment unlikely.

Who is excluded from student loan forgiveness?

It grants the education secretary power to exclude groups from the program if they engage in activities including the trafficking or "chemical castration" of children, illegal immigration and supporting terrorist organizations.

What is the downside of student loan forgiveness?

Pros and Cons at a Glance

Con 1: Student loan forgiveness is an abuse of the loan system; people must be held responsible for their personal economic choices. Read More. Pro 2: Student loan debt has disproportionately hurt Black students; forgiveness would help rectify racial inequity. Read More.

What if I haven't paid my student loans in years?

I haven't paid my student loan in years — what should I do? Your first step is to get your loan out of default status. You can do this by either rehabilitating your loans through your loan holder or applying for debt consolidation through studentaid.gov. If you have private loans, you could refinance.

How much is the monthly payment on a $70,000 student loan?

A $70,000 student loan's monthly payment varies widely, from roughly $750 to over $6,000, depending on interest rates (APR) and repayment term, with a 10-year loan at 5% being around $742/month, while a 1-year term at 14% jumps to $6,285/month; federal loans offer income-driven plans (IDR) for lower payments, but private loans depend heavily on credit score and term length.
 

How do I know if my student loans are going to be forgiven?

To know if your student loans are forgiven, look for official emails/letters from your loan servicer or the Dept. of Ed, check your StudentAid.gov account for a zero balance or forgiveness confirmation, and note that forgiveness (like PSLF or IDR) involves official processing and notifications, not just waiting for a few years. You'll see updates after applying for programs like PSLF or after the IDR adjustment if you're eligible. 

What is the $5500 student loan?

A "$5,500 student loan" typically refers to the maximum Federal Direct Loan amount for a first-year undergraduate student, which combines subsidized and unsubsidized options, with a cap of $3,500 being subsidized (government pays interest) and the rest unsubsidized (interest accrues immediately). This is the starting point for federal student borrowing, with higher limits available in subsequent years and for independent students, generally part of the William D. Ford Federal Direct Loan Program. 

What are the four conditions for forgiveness?

God answered Solomon with four conditions for forgiveness: humble yourself by admitting your sins; praying to God – asking for forgiveness; seeking God continually; and turning from sinful behavior.

What is the golden rule of forgiveness?

Forgiveness should be given by the "golden rule" (Matt. 7:12). One should always be willing to forgive—even at repeated offenses. Matthew 18:21-22 has the apostle Peter asking, "'Lord, how often shall my brother sin against me, and I forgive him?

Do I make too much for student loan forgiveness?

Overview. There is no income limit for any student loan forgiveness program offered by the Education Department. President Biden's first student debt relief plan had an income cap, but that plan was struck down by the Supreme Court in 2023.

Who's eligible for Biden's student loan forgiveness?

Biden's loan forgiveness targets specific groups, including low/middle-income borrowers (<$125k/$250k income) for up to $10k-$20k relief, those defrauded by schools (Borrower Defense), PSLF-eligible workers (govt/nonprofit), long-term borrowers, and those with hardships, with ongoing programs through SAVE plan and one-time adjustments. Eligibility depends on loan type (Direct Loans), income, employment, and specific circumstances like school closures or hardship, with different plans offering various forgiveness amounts and timelines. 

What is the monthly payment on a $50,000 student loan?

A $50k student loan monthly payment varies significantly, but expect around $530/month for 10 years at 5% interest, while income-driven plans (SAVE, PAYE) can be much lower, often 10% of your discretionary income, making payments potentially between $0 to $200+, depending heavily on your earnings and the plan's specifics. Key factors are the interest rate, repayment term, and your income.
 

How do I know if my MOHELA loan will be forgiven?

Whether your MOHELA student loan is forgiven depends on your specific situation, primarily if you qualify for programs like Public Service Loan Forgiveness (PSLF) (10 years of public service/payments) or Income-Driven Repayment (IDR) Forgiveness (20-25 years of payments). You must be on a qualifying plan, work for a qualifying employer (for PSLF), and reach the required payment count; forgiveness isn't automatic, so check your account on MOHELA (mohela.studentaid.gov) or StudentAid.gov (studentaid.gov) for your status and progress.