us govt to forgive $39 billion in student debt for 804,000 borrowers

How To Apply For Student Loan Forgiveness


1. Who is eligible for student loan forgiveness?

Eligibility for student loan forgiveness can vary depending on the specific forgiveness program. Generally, individuals who work in certain public service fields, such as government or non-profit organizations, and make qualifying payments under income-driven repayment plans may be eligible for loan forgiveness.

2. What types of student loans are eligible for forgiveness?

Federal student loans, including Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans, are typically eligible for forgiveness. Private student loans are not eligible for federal forgiveness programs.

3. What is the maximum amount of student loan debt that can be forgiven?

The amount of student loan debt that can be forgiven depends on the forgiveness program. For example, under the Public Service Loan Forgiveness (PSLF) program, borrowers can have the remaining balance forgiven after making 120 qualifying payments.

4. What are the different student loan forgiveness programs?

Some of the prominent student loan forgiveness programs include Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, Income-Driven Repayment (IDR) forgiveness, and forgiveness for borrowers of certain federal student loan programs.

5. How do I apply for student loan forgiveness?

To apply for student loan forgiveness, borrowers typically need to submit an application to their loan servicer or the forgiveness program administrator. The application process may require documentation to verify eligibility.

6. What are the requirements for student loan forgiveness?

Requirements for student loan forgiveness can vary based on the program. Common requirements may include working in a qualifying public service job, making a specific number of qualifying payments, and meeting specific income-based criteria.

7. What are the benefits of student loan forgiveness?

Student loan forgiveness can provide relief from the burden of student debt, especially for borrowers working in public service or low-income professions. It can also encourage individuals to pursue careers in fields that benefit society.

8. What are the drawbacks of student loan forgiveness?

One drawback of student loan forgiveness is that not all borrowers may qualify for forgiveness programs. Additionally, some programs have strict requirements and may require long periods of service or income-driven repayment plans.

9. How does student loan forgiveness affect my credit score?

Student loan forgiveness does not have a direct impact on credit scores. However, borrowers who successfully complete a forgiveness program may have a positive impact on their credit score by maintaining a history of on-time payments.

10. What happens if I default on my student loans after they are forgiven?

If you default on your student loans after they have been forgiven, the lender or loan servicer may take collection actions, such as wage garnishment or offsetting tax refunds.

11. What happens if I die before my student loans are forgiven?

If a borrower passes away before their student loans are forgiven, federal student loans are typically discharged, meaning the debt is no longer owed.

12. What happens if I get divorced after my student loans are forgiven?

In most cases, student loan forgiveness is not affected by divorce. The forgiveness remains valid even if the borrower's marital status changes.

13. What happens if I change jobs after my student loans are forgiven?

Changing jobs after receiving student loan forgiveness generally does not impact the forgiveness itself. However, it is crucial to ensure that all eligibility criteria are met and that any required documentation is submitted as needed.

14. What happens if I move out of the country after my student loans are forgiven?

Moving out of the country after student loan forgiveness does not typically affect the forgiveness itself. However, borrowers should stay in touch with their loan servicers and fulfill any reporting requirements.

15. What are the tax implications of student loan forgiveness?

In some cases, forgiven student loan amounts may be considered taxable income, which means borrowers may owe taxes on the forgiven amount.

16. How can I find out more about student loan forgiveness?

Borrowers can find more information about student loan forgiveness programs on the official Federal Student Aid website and by contacting their loan servicers.

17. What are the latest updates on student loan forgiveness?

The availability and details of student loan forgiveness programs can change over time. Borrowers should regularly check official sources for the latest updates on forgiveness programs.

18. What are the chances of student loan forgiveness happening?

The chances of student loan forgiveness happening may depend on various factors, including government policies and economic conditions.

19. What are the arguments for and against student loan forgiveness?

Arguments for student loan forgiveness often include reducing financial burdens, promoting economic growth, and addressing social inequalities. Arguments against it may focus on fiscal concerns and potential moral hazards.

20. What is the future of student loan forgiveness?

The future of student loan forgiveness remains uncertain and may be subject to policy changes, economic conditions, and political decisions. Borrowers should stay informed about any developments in the student loan forgiveness landscape.

Applying for Student Loan Forgiveness

The US government is set to forgive $39 billion in student debt for 804,000 borrowers. Here's how you can apply for student loan forgiveness:

Determining Eligibility

To qualify for the $39 billion student debt cancellation under Biden's plan, borrowers need to meet certain criteria. The Education Department is addressing past errors made by loan servicers, leading to the debt relief.

Notification and Account Adjustments

Borrowers who are eligible for debt elimination will receive notifications in the coming days and months. The account adjustments will reflect the qualifying payments required to eliminate their loans. This process will extend throughout the entire year.

Eligible Loans

Student loan forgiveness programs aim to eliminate part or all of a borrower's federal student loan debt. Eligibility varies based on the specific program. Many forgiveness options are available to those working in public service roles.

Different Forgiveness Programs

1. Public Service Loan Forgiveness (PSLF):

- Offers debt cancellation after 120 qualifying payments.

- Accessible to individuals employed in public service roles.

- Examples: Teacher Loan Forgiveness, Perkins Loan Cancellation, National Health Service Corps Loan Repayment, Peace Corps Loan Forgiveness.

2. Repayment Plans with Loan Forgiveness:

- Income-driven repayment plans: IBR, PAYE, REPAYE, TEPSLF.

- Qualification requires 20 or 25 years of qualifying payments under specific plans.

3. Borrower Defense:

- For borrowers affected by educational institution fraud.

- Qualification criteria vary.

4. Loan Forgiveness Programs:

- Segal AmeriCorps Education Award for AmeriCorps volunteers.

- Army National Guard’s Student Loan Repayment Program.

- Teacher Loan Forgiveness Program.

- State-specific programs for healthcare professionals in underserved areas.

Understanding Forgiveness vs. Discharge

- Loan Forgiveness: Usually occurs due to public service or nonprofit work, with the borrower no longer required to make payments.

- Loan Discharge: Typically happens in cases of bankruptcy, death, permanent disability, or educational institution misconduct.

Pros and Cons of Student Loan Forgiveness


- Relieves debt burden.

- Encourages public service.

- Increases disposable income.


- Requires years to qualify.

- May increase taxable income.

- Could accelerate interest accrual under income-driven repayment plans.

Applying for Student Loan Forgiveness

1. Consolidate Loans: If necessary, consolidate non-direct federal student loans into a direct loan.

2. Apply for Forgiveness: File the appropriate certification and application form for the forgiveness program you qualify for.

3. Qualifying Payments: Make 120 qualifying payments under an eligible repayment plan.

4. Submit Employment Certification: After completing 120 payments, submit an employment certification form to verify your qualifying public service job.

Funding and Application Process

- The government's forgiveness program can be costlier due to fewer economies of scale compared to private lenders.

- The application process varies by program; ensure you fulfill requirements promptly.

Remember, while these guidelines provide an overview, it's essential to consult official sources for accurate and up-to-date information on student loan forgiveness programs.