How Do i Apply For Student Loan Forgiveness After 25 Years?

There are a couple of ways to potentially qualify for student loan forgiveness after 25 years, but there are important details to keep in mind:

1. Income-Driven Repayment (IDR) Forgiveness

• Eligible Loans: Only federal Direct Loans qualify for IDR forgiveness.
• Enrollment: You must be on an IDR plan for the entire 25 years (some plans forgive after 20 years). These eligible plans include:
  • Income-Contingent Repayment (ICR) Plan
  • Income-Based Repayment (IBR) Plan
  • Pay As You Earn (PAYE) Plan
  • Revised Pay As You Earn (REPAYE) Plan
• Payments: You must make consistent monthly payments for the required period.
• Automatic Forgiveness: The Department of Education has announced changes to the PSLF program that include automatically forgiving the balance of Direct Loans after the required repayment period is met, even if not enrolled in PSLF.

2. Public Service Loan Forgiveness (PSLF)

• Eligible Employment: Working full-time for a qualifying public service employer (government, non-profit, etc.)
• Eligible Loans: Direct Loans only.
• Enrollment: Be on an IDR plan.
• Payments: Make 120 on-time qualifying payments (10 years).
• Application Required You need to submit the PSLF application.

How to Apply (If Eligible)

• IDR Forgiveness:
  • If you’re already on track with eligible loans and payments, the recent changes mean it’s likely to be automatic.
  • If uncertain, contact your loan servicer as you approach the 20 or 25-year mark on your IDR plan to inquire about the forgiveness process.
• PSLF:
  • Visit the PSLF website: https://studentaid.gov/pslf/
  • Complete and submit the PSLF form along with employer certifications.

Key Points

• Private Student Loans: These sadly don’t qualify for these forgiveness programs.
• Consolidation: If you have older FFEL or Perkins loans, consolidating them into a Direct Consolidation Loan may make them eligible for IDR or PSLF forgiveness.
• Get Help: The process and eligibility criteria can be complex, consider speaking to your loan servicer or exploring the resources on the Federal Student Aid website.