Why is my loan ineligible for direct forgiveness?

Your loan may be ineligible for direct forgiveness because it is not a Federal Direct Loan, you are not on a qualifying repayment plan, you do not have qualifying employment, you haven't made enough qualifying payments, or there may be a processing error.

Why am I not eligible for student loan forgiveness?

Many borrowers who have applied for public service loan forgiveness have not made the 120 qualifying loan payments. It takes at least 10 years to make 120 qualifying payments. If you haven't been in repayment for at least 10 years, it is impossible for you to have made 120 qualifying payments.

Why does my student loan say ineligible?

There are multiple potential reasons you might be ineligible, ranging from not filling out the Free Application for Federal Student Aid (FAFSA) to being incarcerated.

At what point are you not eligible to receive direct subsidized loans?

You're no longer eligible for Direct Subsidized Loans when you exceed 150% of your program's published length (e.g., 6 years for a 4-year degree) for loans received before July 1, 2021, but this time limit was repealed for first-time borrowers on or after July 1, 2021, restoring eligibility, though the government stops paying interest on subsidized loans once you hit that time limit, making them unsubsidized, but you can still get unsubsidized loans. 

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.

What The New Rules Governing Student Loan Forgiveness Mean For You

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. 

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 #1 most common FAFSA mistake?

Some of the most common FAFSA errors are: Leaving blank fields: Too many blanks may cause miscalculations and an application rejection. Enter a '0' or 'not applicable' instead of leaving a blank. Using commas or decimal points in numeric fields: Always round to the nearest dollar.

Which is better, a direct subsidized or unsubsidized loan?

Direct Subsidized Loans: You won't be charged interest while you're enrolled in school or during your six-month grace period. Direct Unsubsidized Loans: Interest starts accumulating from the date of your first loan disbursement (when you receive the funds from your school).

How much is a $30,000 student loan per month?

A $30,000 student loan typically costs around $300-$400 per month on a 10-year standard plan, but can range from under $100 on income-driven plans to over $700 for shorter terms or high interest rates, depending heavily on your interest rate and repayment term. For example, at 6.5% interest on a 10-year plan, payments are about $341, while a 20-year term at 7% might be around $232, and faster payoff plans significantly increase monthly costs. 

What does it mean when your financial aid says currently ineligible?

"Currently ineligible" on financial aid means you don't meet federal or school-specific requirements to receive funds, often due to issues like defaulting on old loans, not making Satisfactory Academic Progress (SAP), issues with citizenship status, over-receiving aid, or being incarcerated, requiring you to resolve the issue (like repaying debt or improving grades) to regain eligibility for grants and loans. 

How can I tell if I am eligible for student loan forgiveness?

You might qualify for federal student loan forgiveness through programs like Public Service Loan Forgiveness (PSLF) for government/nonprofit jobs, Income-Driven Repayment (IDR) plans, or specific relief for teachers, nurses, or those with disabilities, with recent adjustments potentially helping long-term borrowers or those defrauded by schools. Qualification hinges on your loan type (Direct Loans are key), employer (for PSLF), repayment plan, and payment history, requiring you to apply and track progress, especially for PSLF. 

What does ineligible status mean?

In legal terms, "ineligible" describes a person who is legally disqualified from holding a specific office or position. This means they do not meet the legal requirements or possess certain qualifications necessary to serve, making them unable to lawfully assume or continue in that role.

Why are all my loans ineligible for PSLF?

Only Direct Loans are eligible for loan forgiveness under the TEPSLF opportunity. You have loans under other federal student loan programs, such as the FFEL Program or the Perkins Loan Program. Loans from these programs do not qualify for PSLF.

What happens after 7 years of not paying student loans?

After 7 years, defaulted federal or private student loans typically get removed from your credit report, which can boost your score, but the debt itself doesn't disappear; you still owe it, and collection efforts, wage garnishment (federal), or legal action (private) can continue, as federal loans have no statute of limitations, and private loans are subject to state laws, not a universal 7-year rule for discharge. 

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.

Who is eligible for a direct subsidized loan?

Direct Subsidized Loans are for undergraduate students with demonstrated financial need, requiring you to complete the FAFSA, be enrolled at least half-time, meet Satisfactory Academic Progress (SAP), and not be in default on other aid. The U.S. Department of Education pays the interest while you're in school at least half-time, during deferment, and for the first six months after you leave school. 

What are the loan forgiveness options?

Seeking forgiveness under Public Service Loan Forgiveness (PSLF)? The PSLF Program forgives the remaining balance on your Direct Loans after you've satisfied the equivalent of 120 qualifying monthly payments (10 years) under an IDR plan while working full-time for an eligible employer.

What is a good credit score for a loan?

Scores of 700 and above are considered “good,” and scores over 800 are considered “exceptional.” Those who have “very good” or “exceptional” credit scores are more likely to qualify for loans and receive favorable terms, like lower interest rates and flexible repayment periods.

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 not to put on your FAFSA?

On the FAFSA, you should not report your primary home, retirement accounts (401k, IRA, pension), life insurance policies, vehicles, ABLE accounts, or the value of family farms/businesses with 100 or fewer employees, nor should you list credit card debt or health savings accounts (HSAs) as assets. Common income errors to avoid are reporting student aid as income or failing to include stepparent income if applicable. 

What is the most commonly failed class in college?

While it varies by institution, Calculus (especially Calc II) and Organic Chemistry are consistently cited as the most failed college classes due to complex material, heavy memorization, and demanding pace, often impacting STEM and pre-med students significantly, with other challenging subjects including Physics, Computer Science, and demanding theory courses. 

How many people have $100,000 in student loans?

Around 3.6 million U.S. student loan borrowers owe more than $100,000 in federal student debt, a figure that has grown significantly, representing about 7% of all borrowers, with many of these larger debts concentrated among graduate and professional degree holders, according to late 2025 data from the BestColleges and CNBC. 

What credit score do I need for a $70,000 loan?

You'll need to meet a lender's minimum credit and income requirements, which can vary by lender. Some lenders accept fair credit scores, while others look for good or very good scores. On the FICO scoring model, fair scores range from 580 to 669, good scores start at 670 and very good scores start at 740.

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.