Understanding if you qualify for student loan forgiveness is crucial. Here’s an in-depth look at the eligibility requirements for each major federal student loan forgiveness program.
CHECK: Federal Student Loan Forgiveness: Your Comprehensive Guide
Public Service Loan Forgiveness (PSLF)
Loan Type Requirements
- Eligible: Federal Direct Loans
- Not Eligible: FFEL Program loans, Perkins Loans, private loans
Employment Requirements
- Full-time employment (at least 30 hours per week) with:
- Government organizations (federal, state, local, or tribal)
- Non-profit organizations that are tax-exempt under Section 501(c)(3)
- Other types of non-profit organizations that provide qualifying public services
Payment Requirements
- Make 120 qualifying monthly payments:
- Payments must be made under a qualifying repayment plan
- Payments must be made while working for a qualifying employer
- Payments must be made for the full amount due
- Payments must be made no later than 15 days after the due date
Qualifying Repayment Plans
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-contingent repayment (ICR)
- 10-Year Standard Repayment Plan
Additional Requirements
- You must not be in default on your loans
- You must be employed by a qualifying employer at the time you apply for forgiveness and when forgiveness is granted
Teacher Loan Forgiveness
Loan Type Requirements
- Direct Subsidized and Unsubsidized Loans
- Subsidized and Unsubsidized Federal Stafford Loans
Teaching Requirements
- Teach full-time for five complete and consecutive academic years in a low-income school or educational service agency
- At least one of those years must be after the 1997–98 academic year
Qualification as a Highly Qualified Teacher
You must meet the definition of a highly qualified teacher:
- Have at least a bachelor’s degree
- Receive full state certification as a teacher
- Not have had certification or licensure requirements waived on an emergency, temporary, or provisional basis
School Requirements
- The school must be listed in the Teacher Cancellation Low Income Directory
Subject Area Requirements (for maximum forgiveness)
To receive up to $17,500 in forgiveness:
- Teach mathematics or science at the secondary school level
- Be a special education teacher for children with disabilities in a qualified low-income school
Loan Timing Requirement
- The loan(s) for which you are seeking forgiveness must have been made before the end of your five academic years of qualifying teaching service
Income-Driven Repayment (IDR) Plan Forgiveness
General Requirements
- Have eligible federal student loans
- Be enrolled in an IDR plan
- Make payments for 20 or 25 years (depending on the plan and loan type)
Specific Plan Eligibility
Income-Based Repayment (IBR)
- Have a high debt relative to your income
- Have either Direct Loans or FFEL Program loans
Pay As You Earn (PAYE)
- Be a new borrower as of Oct. 1, 2007
- Have received a disbursement of a Direct Loan on or after Oct. 1, 2011
- Have a high debt relative to your income
Revised Pay As You Earn (REPAYE)
- Have eligible Direct Loans
- No income requirement to enter the plan
Income-contingent repayment (ICR)
- Available for all Direct Loan borrowers
- Parent PLUS loan borrowers can access this plan if they consolidate into a Direct Consolidation Loan
Continued Eligibility
- Recertify your income and family size annually
- Remain on the IDR plan for the entire repayment period (20 or 25 years)
Important Notes
- Forgiveness through IDR plans is currently taxable as income (unlike PSLF)
- The forgiveness timeline varies:
- 20 years for undergraduate loans under most plans
- 25 years for graduate loans or the ICR plan
Remember, eligibility requirements can change. Always verify current information with the Federal Student Aid office or your loan servicer. If you’re close to meeting eligibility requirements but don’t quite qualify, check for any temporary waivers or expansions that might apply to your situation.
