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Student Loan Forgiveness Guide

On Aug. 24, 2022, the Biden administration unveiled its federal student loan forgiveness plan in which millions of borrowers could qualify for up to $20,000 in student debt cancellation. Under the plan, those who have federal student loans and meet the income criteria are eligible to apply for forgiveness or will receive automatic cancellation. However, applications are currently closed due a Nov. 10 ruling from a Texas federal judge declaring the plan unlawful. Here's everything you need to know, from important deadlines to how forgiveness will impact you to everything else in between. Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Heidi Rivera is a student loans writer for Bankrate. She began her journey in the personal finance space in 2018 and is passionate about collecting data and creating content around higher education and student loans. Chelsea has been with Bankrate since early 2020. She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans.

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Do I qualify for forgiveness

Only federally owned student loans . Privately owned Federal Family Education (FFEL) and that weren't consolidated into federal Direct Loans are among those not eligible. Borrowers are eligible for up to $10,000 in federal student loan forgiveness if their adjusted gross income is under $125,000 annually. Married borrowers who file their taxes jointly and make under $250,000 a year are also eligible for up to $10,000. You can find your adjusted gross income on line 11 of IRS form 1040. Current and former Pell Grant recipients are eligible for up to $20,000 if they meet the income requirements. Plus, payments made on federal loans during the - which started on March 13, 2020 and was recently extended through Dec. 31 of this year - may be eligible for a refund. If your current balance is lower than the amount of debt relief you can receive, the payments you made will be refunded up to your maximum relief amount.

Why can t I access the application

Currently, people who visit the on the Federal Student Aid website are unable to complete it. This is due to ongoing legal action over the plan. On Nov. 10, 2022, Texas-based U.S. District Judge Mark Pittman "unconstitutional." He was ruling on a lawsuit brought by two student loan borrowers backed by the conservative Job Creators Network Foundation. The U.S. Justice Department has already appealed the ruling. But in the meantime, the application form is inaccessible. The U.S. Department of Education states on the application page that it will hold onto any currently submitted applications and will continue to share updates as they become available. Even before the latest ruling, cancellations were due to a separate lawsuit brought by six Republican-led states. The states claim that because student debt forgiveness isn't considered taxable income, the forgiveness plan will cost them tax revenue. On Oct. 21, the Eighth Circuit Court of Appeals issued a stay on forgiveness while it considers the states' appeal on blocking the relief program.

Important deadlines

Only federally owned student loans . Privately owned Federal Family Education (FFEL) and that weren't consolidated into federal Direct Loans are among those not eligible. To maximize your potential forgiveness amount, it's important to meet all required deadlines. If you fail to meet a deadline, you risk losing some of your forgiveness or may be disqualified from cancellation altogether. Oct. 17, 2022 Features Ask your servicer if forgiveness is automatic. Most must fill out the form for forgiveness. Sign up for the Department of Education's email for updates. Nov. 15, 2022 Features Expected processing turnaround is 4 to 6 weeks. Applications will still be accepted past this deadline. Debt will be canceled before payments and interest renew. Jan. 1, 2023 Features Defaulted federal loans will be restored to good standing. Interest will no longer be set to zero percent. Refunds not available for payments made after Dec. 31. Dec. 31, 2023 Features Applications won't be processed after this date. Remaining debt must be repaid in full. Refunds for eligible payments not offered past the date. Oct. 17, 2022 Features Ask your servicer if forgiveness is automatic. Most must fill out the form for forgiveness. Sign up for the Department of Education's email for updates. Nov. 15, 2022 Features Expected processing turnaround is 4 to 6 weeks. Applications will still be accepted past this deadline. Debt will be canceled before payments and interest renew. Jan. 1, 2023 Features Defaulted federal loans will be restored to good standing. Interest will no longer be set to zero percent. Refunds not available for payments made after Dec. 31. Dec. 31, 2023 Features Applications won't be processed after this date. Remaining debt must be repaid in full. Refunds for eligible payments not offered past the date.

br What student loan forgiveness means for me 

Up to $10,000 of your federal debt taken out before June 30, 2022, will be forgiven if you make under $125,000 annually (or $250,000 if married and filing jointly). Up to $20,000 will be forgiven if you've ever had a Pell Grant and meet the income requirements.

Your future federal loans will not be eligible for the mass student loan forgiveness. The Department has indicated that broad forgiveness is a one-time opportunity for current federal loan holders. However, you may qualify for other .

If you meet the income eligibility criteria and your loans were taken out before June 30, 2022 you could get up to $10,000 in forgiveness or $20,000 if you've ever had a Pell Grant.

If you meet the eligibility criteria, you'll get up to $20,000 in federal debt cancellation. Also, apply for Public Service Loan Forgiveness to cover your remaining federal balance before the on Oct. 31.

Only co-signers of federal Grad or will see changes in their co-signed loan should the original loan holder meet forgiveness eligibility requirements. Co-signers of private student loans will see no changes in their co-signed balance.

If you took out federal loans before June 30, 2022, and received a Pell Grant as part of your financial aid package, you're eligible for up to $20,000 in federal debt cancelation.

You . Check with your private student loan servicer to see if it offers payment hardship relief or loan forgiveness. However, if you have a mix of both federal and private loans, you could get up to $20,000 in federal forgiveness if you meet the requirements.

You're eligible for a refund on any payments made on your federal loans during the student loan payment pause (from March 13, 2020, through Dec. 31, 2022). The Department of Education will automatically refund payments after the initial round of forgiveness.

If you have privately owned Federal Family Education (FFEL) or Perkins Loans and didn't consolidate them - or apply for consolidation - into Federal Direct Loans by Sept. 29, 2022, then you're not .

How will student loan forbearance ending affect me

The student loan on Dec. 31, 2022, meaning that federal student loan payments will begin again on Jan. 1, 2023, and interest rates will no longer be at zero percent. However, borrowers with delinquent payments and those whose loans were in default as of March 13, 2020, will be restored to when payments resume. Apply by the Nov. 15 deadline to qualify for forgiveness before payments restart. If you fail to apply after the deadline, you'll have to start making payments on your loans while waiting for the application to process. Plus, any payments made after Dec. 31 will be ineligible for a refund as the forbearance period will no longer be in effect. To stay up-to-date with payments restarting, contact your loan servicer and sign up for ED updates so you don't fall behind. If managing your remaining balance concerns you, to score a lower interest rate after receiving forgiveness. However, while refinancing your loans could help you save money, it's not for everyone. It should be a last-resort option as borrowers lose all federal benefits - - after refinancing with a private lender.

br Recommended forgiveness articles

New changes will bring many PSLF and IDR-eligible borrowers closer to forgiveness. Federal student loan forgiveness stalled temporarily due to lawsuit. Here’s what we know so far about Biden’s broad student loan forgiveness plan. Borrowers who combined their student loans with their spouse’s may soon see relief. New changes will bring many PSLF and IDR-eligible borrowers closer to forgiveness. Federal student loan forgiveness stalled temporarily due to lawsuit. Here’s what we know so far about Biden’s broad student loan forgiveness plan. Borrowers who combined their student loans with their spouse’s may soon see relief.

br Student loan forgiveness FAQs

You'll need to provide the following information: Full name. Social security number. Date of birth. Phone number. Email address. You'll also need to sign the form to verify:
You'll provide proof of income to the U.S. Department of Education by March 31, 2024 if requested. Your own name is listed in the application. You meet the income requirements for federal student loan debt relief. Once you've filled it out, the ED may reach out to you via email for more proof of income information. Beware of phone calls from people claiming to be with the ED - . Your loan servicer will apply any relief you receive to your account and notify you. Most qualifying borrowers should receive their relief . You do not need to apply for forgiveness if the ED already has your income data on file. That may be the case if you're currently enrolled in an income-driven repayment program and recertified your income data in 2020 or 2021, or if you filled out a Free Application for Federal Student Aid for the 2022-23 school year. For these individuals, the ED will work with loan servicers to forgive your maximum eligible amount automatically. According to the White House, nearly 8 million borrowers fall into this category. You should receive an email if you're one of them. But if you're still unsure, filling out the application form can't hurt.

This debt forgiveness will on the federal level. However, , such as Mississippi and North Carolina.

You'll need to log in to studentaid.gov with your . You'll then need to scroll down to the "My Loan Servicers" section on the site and will be able to see your balance and who your servicer is. If you have forgotten your FSA ID and password, you can retrieve them as long as you remember the basic information the account is listed under. You can also call the to get your servicer information.

If your loans are from the Department of Education and you had to apply through the , they're federal. You can find the information on studentaid.gov. are available through private lenders, banks and credit unions. Check your bank statements or credit report to see which lenders you've applied or made payments to.

You can check your financial aid information - including past need-based aid, like - on your studentaid.gov account dashboard. To log in, you'll need your FSA ID or basic account information to retrieve your ID.

You're eligible for forgiveness on your federal student loans if you meet the income requirements, regardless of your private loan balance. However, private loans don't qualify for forgiveness at all. If you only hold private loans, talk to your lender to see if it offers hardship or forgiveness options.

is a federal forgiveness program that cancels public servants' remaining student loan balance after they make 120 qualifying payments. It's long been scrutinized for its . The Biden administration released a that, much like the , lessens the requirements and makes forgiveness automatic for eligible borrowers. To take advantage of the temporary PSLF overhaul, borrowers must consolidate their federal loans, apply for an (IDR) plan and apply for PSLF by the Oct. 31 expiration date.

There are multiple forgiveness and hardship options available to federal borrowers who qualify. There are need-based forgiveness programs, like (TPD). And you may qualify for occupation-based forgiveness programs like those for , , and . Finally, you may be eligible for extra forgiveness if you accumulated federal student loan debt at certain , such as . The Department of Education also offers for those struggling to manage their monthly payments, including graduated repayment and income-driven repayment. If you're enrolled in an IDR plan, you may designed to .

Since March 13, 2020, federal student loan payments have been stalled, and interest rates have been set to zero percent. After of this year, payments will resume, interest rates will be restored to their original percentages and interest accrual will resume. Those who have loans in default or have delinquent payments will also be status once payments begin. Contact your servicer for more information.

br Compare student loan refinance offers

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Answer a few questions in two minutes or less to see which student loans you pre-qualify for. It's free and will not impact your credit score.The Bankrate scoring system evaluates lenders' affordability, availability and customer experience based on 11 data points selected by our editorial team.An annual percentage rate (APR) represents the interest and fees you'll pay on top of your initial amount every month. A fixed rate will not change during your repayment period.The range of loan amounts that a lender will service. The maximum value is the largest amount a lender will give although this amount may not be available to borrowers who don’t have good or excellent credit. Amount ranges may vary for non-loan products. Term refers to the amount of time you have to repay the loan.The minimum credit score typically required to qualify for a loan with a given lender. Exact thresholds are not always disclosed by a lender and in certain cases the minimum score is the best estimate based on publicly available information. Credit score refers to FICO 9.0 unless otherwise stated. 4.0Bankrate Score3.99- 8.24with AutoPay$25k- $500kTerm: 5-25 yr See offersArrow Right Offer DetailsLender InfoBankrate's ViewLow rates for loans over $5000No Maximum loan amountSee your rates in 3 minutes without affecting your credit scoreNo application or origination fees and no prepayment penaltiesFriendly customer service available via phone, email, and live chatApply on partner site4.1Bankrate Score2.94- 11.87with AutoPay$5k- $500kTerm: 5-20 yr See offersArrow Right Offer DetailsLender InfoBankrate's ViewCompare real, pre-qualified rates from up to 10 lenders in under 2 minutesNo hidden fees, origination fees or prepayment penaltiesChecking your rates won't affect your credit scoreVariable rates will fluctuate over the term of the borrower's loan with changes in the LIBOR rate. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy co-signers, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.Apply on partner site4.7Bankrate Score3.99- 8.94with AutoPay$5k- $500kTerm: 5-20 yr See offersArrow Right Offer DetailsLender InfoBankrate's ViewEasy online application!No origination fees, late fees, and no insufficient fund fees. PeriodFlexible repayment options to help you find the right loan for you0.25% discount when you set up autopay*Rates:
Lowest rates shown include the auto debit discount: Additional information regarding the auto debit discount: The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. Advertised APRs are valid as of 11/1/2022. Loan amounts: Loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount.
Terms:
Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 9.09% fixed APR, 51 payments of $25.00, 119 payments of $165.12 and one payment of $120.52, for a Total Loan Cost of $21,044.80. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 9.47% fixed APR, 27 payments of $25.00, 179 payments of $119.57 and one payment of $55.39 for a total loan cost of $22,133.42. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.Apply on partner site4.3Bankrate Score3.99- 8.99with AutoPay$5k- $500kTerm: 5-20 yr See offersArrow Right Offer DetailsLender InfoBankrate's ViewLower rates based on your future potential and full financial profile, not just your FICO scoreFlexible terms that let you pick your exact monthly paymentLifetime service provided in-house. Unlike other lenders, we will never pass you off to third-party servicersNo fees for origination, prepayment, or loan disbursementTwo-minute rate check with no obligation at www.earnest.comActual rate and available repayment terms will vary based on your income. Fixed rates range from 4.24% APR to 9.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 3.49% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.Apply on partner site3.99- 8.99with AutoPay$5k- $500kTerm: 5-20 yr See offersArrow Right Offer DetailsLender InfoBankrate's ViewYou can refinance without a degreeThree minutes to get your rate with our quick and easy online applicationNo fees, including no application, prepayment, or late fees1Customize loan terms, from 5 to 20 years to fit your budget and financial goalsStudent or Parent PLUS Loan refinancing availableAutopay discount of 0.25%You can choose between fixed and variable rates. Fixed interest rates are 4.24% - 9.24% APR (3.99% - 8.99% APR with Auto Pay discount). Starting variable interest rates are 3.49% - 8.24% APR (3.24% - 7.99% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA. Apply on partner site4.4Bankrate Score5.39- 11.87with AutoPay$10k- $750kTerm: 5-20 yr See offersArrow Right Offer DetailsLender InfoBankrate's ViewYou can see if you'll qualify and what rate you'll get without a hard credit checkYou can refinance Federal PLUS Loans in your nameLoyalty discount: Borrowers with a Citizens account when they apply get an additional 0.25% interest rate discountVariable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of October 1, 2022, the 30-day average SOFR index is 2.38%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the prime rate plus 9.00%. Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer. Lowest Rate Disclosure: Lowest rates are for the most creditworthy applicants, require a 5-year repayment term, immediate repayment, a graduate or medical degree (where applicable), and include Loyalty and Automatic Payment discounts of 0.25 percentage points each. Subject to additional terms and conditions and may change at any time without notice. Such changes apply to applications taken after effective date of change.
Apply on partner site4.0Bankrate Score3.99- 10.68with AutoPay$5k- $300kTerm: 5-20 yr See offersArrow Right Offer DetailsLender InfoBankrate's View2-Minute rate check with no impact on your credit scoreNo origination fees or prepayment penaltiesNetwork of 300+ community lenders means higher chances for approval and lower ratesAvailable for private and federal, undergraduate and grad school student loans0.25% Interest Rate Reduction with automatic paymentsOne of the largest unemployment protection offers in the market; up to 18 monthsCosigner release available after 12 monthly paymentsRates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile, and it may be based on your credit score, level of degree earned, and the availability and credit score of a cosigner applicant. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Variable rates may increase after consummation. Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if your meet the lender's eligibility criteria. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.Apply on partner site4.2Bankrate Score4.29- 7.29$10k- $500kTerm: 5-20 yr See offersArrow Right Offer DetailsLender InfoBankrate's ViewPrequalify to estimate rate without affecting your credit scoreSubmit online application in minutesNo application fees, origination fees, and prepayment penaltyFlexible repayment terms to fit your needs and goalsStudent Loan Advisor to guide you through the application processEducation Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 06-24-2022. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner's (if any) financial history. See Eligibility Requirements for more information. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.Apply on partner site