Ibrahim Gardner
Student loan debt is a significant issue in the United States, with 42.7 million borrowers owing more than $1.6 trillion in student debt. The US Department of Education offers various programs to assist borrowers in repaying their federal student loans, including income-driven repayment plans, loan forgiveness for public service and teachers, and discharge options for borrowers with disabilities or in cases of school closure. The Biden-Harris Administration has been criticized for its handling of federal student loans, with accusations of irresponsible lending and illegal loan forgiveness promises. As of May 2025, the Department resumed collections on defaulted federal student loans, urging borrowers to make voluntary payments and utilize repayment plans.
| Characteristics | Values |
|---|---|
| Who is trying to pay off all student loans? | The U.S. Department of Education |
| What is the current situation? | Nearly 1.9 million borrowers have not started repayment due to a processing pause. The Department has not collected on defaulted loans since March 2020. |
| What is the Department doing now? | They are urging borrowers to contact the Default Resolution Group to make a payment, enroll in a plan, or sign up for loan rehabilitation. |
| What are some tips for paying off student loans? | Explore repayment plans and loan forgiveness programs. Understand the unique traits of student loans, such as interest accrual and government support during deferment. Stay current on payments to avoid negative consequences like default and loss of federal aid eligibility. |
| What are some loan forgiveness options? | Public Service Loan Forgiveness (PSLF), Teacher Education Assistance for College and Higher Education (TEACH) Grant, disability discharge (TPD), and military service member benefits. |
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What You'll Learn
Loan forgiveness programs
One such program is the Income-Driven Repayment (IDR) plan, which allows borrowers to cap their monthly loan payments at a certain percentage of their discretionary income. Under this plan, borrowers may be eligible for loan forgiveness after 20 or 25 years, depending on their plan and loan type. The IDR plan is most beneficial for those with large loan balances relative to their income. Another option is the Public Service Loan Forgiveness (PSLF) program, which is available to government and qualifying nonprofit employees with federal student loans. Eligible borrowers under this program can have their remaining loan balance forgiven after making 120 qualifying loan payments and completing 10 years of full-time public service work.
Additionally, teachers employed full-time in low-income public schools may qualify for Teacher Loan Forgiveness of up to $17,500 after teaching for five consecutive years. This program also extends to those who teach in educational service agencies that serve low-income areas. Borrowers with disabilities can also apply for a Total and Permanent Disability (TPD) discharge, which eliminates the need to repay federal student loans or complete grant service obligations.
It is important to note that forgiveness is typically not an option for defaulted loans, and borrowers may need to explore alternatives such as consolidation or rehabilitation to get their loans in good standing before becoming eligible for forgiveness. It is also crucial to beware of scams and only utilize legitimate programs, as applying for loan forgiveness should be free of charge.
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Loan repayment plans
The US Department of Education has offered several federal student loan repayment options to help borrowers get back on track with their loan repayments. The Department has not processed applications for Income-Based Repayment, Income-Contingent Repayment, or PAYE repayment plans since August 2024, but it anticipates processing to begin soon.
The Department encourages borrowers to use the Loan Simulator to compare available repayment plans, estimate monthly payments, and determine eligibility. This tool can help borrowers find the best repayment plan for their needs.
The Income-Driven Repayment (IDR) plan is one option for borrowers. This plan bases monthly payments on income and family size. After making payments for 20 or 25 years, the remaining balance on student loans may be forgiven. The Department has made efforts to streamline the application process for IDR plans, such as allowing borrowers to grant access to their federal tax information, which results in automatic annual recertification of their IDR plans.
Additionally, the Public Service Loan Forgiveness (PSLF) program offers forgiveness of the remaining loan balance for those who work full-time for the government or not-for-profit organizations and make 120 qualifying monthly payments under a qualifying repayment plan, such as an IDR plan or a standard 10-year plan.
The Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation can also be discharged if the borrower has a Total and Permanent Disability (TPD) discharge, which applies to borrowers with a severe physical or mental disability that limits their ability to work now and in the future.
The Department has also provided clear information about payment options and resources to assist borrowers in selecting the best repayment plan.
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Loan discharge
Public Service Loan Forgiveness (PSLF)
Under PSLF, a borrower may qualify for forgiveness of the entire remaining balance of their Direct Loan after they have made 120 qualifying monthly payments under a qualifying repayment plan. Qualifying repayment plans include an IDR plan or a standard 10-year plan.
Borrower defence
Borrower defence is a legal ground for discharging federal Direct Loans. Borrowers apply for borrower defence for specific reasons, such as if their school closes while they are enrolled or soon after they withdraw.
Total and Permanent Disability (TPD) discharge
To get TPD discharge, a borrower must have a disability that severely limits their ability to work, both at the time of application and in the future. This can be a physical or mental disability. If a borrower gets a TPD discharge, they don't have to repay their federal student loans. In most cases, the borrower will have to provide proof of their disability and may be subject to a post-discharge monitoring period. However, some people get an automatic discharge if they are identified as eligible by the Social Security Administration or Veterans Affairs.
Loan repayment plans
The US Department of Education offers Income-Driven Repayment (IDR) plans, which base a borrower's monthly payment on their income and family size. If a borrower repays their loans under an IDR plan, the end-of-term balance on their student loans may be forgiven after they make a certain number of payments over 20 or 25 years (240 or 300 monthly payments).
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Loan forgiveness for teachers
There are several loan forgiveness programs available for teachers in the US. These programs are offered by the federal government and are designed to help teachers who are struggling with student loan debt. Here is an overview of some of these programs and how they can help teachers manage their debt.
Public Service Loan Forgiveness (PSLF) is a popular option for teachers with federal student loans. This program offers loan forgiveness after 120 qualifying payments for those working in public service, including many teachers. PSLF does not have a debt limit for forgiveness, making it a viable option for borrowers with high student loan debt. To benefit from PSLF, teachers need to repay their loans under an IDR (income-driven repayment) plan or a standard 10-year plan. The IDR plan bases monthly payments on income and family size, and the remaining balance may be forgiven after a certain number of payments over 20 or 25 years.
The Teacher Loan Forgiveness (TLF) Program is another option specifically for teachers. TLF provides up to $17,500 in loan forgiveness for highly qualified math, science, or special education teachers who complete five consecutive academic years in certain eligible low-income schools. Other eligible teachers can receive up to $5,000 in forgiveness. To qualify for TLF, teachers must work full-time for five complete and consecutive academic years, with at least one year after the 1998–99 academic year. Direct Subsidized and Unsubsidized Loans, as well as Subsidized and Unsubsidized Federal Stafford Loans, are eligible for TLF, while Direct PLUS Loans, FFEL PLUS Loans, and Perkins Loans are not.
The Perkins Loan program also offers forgiveness for teachers. This program can forgive up to 100% of Federal Perkins Loans for those teaching full-time at low-income schools or teaching certain subjects. Unlike other programs, Perkins Loan forgiveness is granted in yearly increments of 15% for the first and second years of service, including accrued interest. This means that portions of the loan are forgiven each year after meeting service requirements, rather than waiting until the completion of all service years.
Additionally, teachers with disabilities can apply for a Total and Permanent Disability (TPD) discharge, which eliminates the need to repay federal student loans. This option is available for those with physical or mental disabilities that severely limit their ability to work. Proof of disability is generally required, and there may be a post-discharge monitoring period to ensure eligibility.
It is important for teachers to carefully consider their circumstances and explore all available options before choosing a loan forgiveness program. Resources such as the PSLF Help Tool and the Loan Simulator can assist in comparing programs and understanding specific eligibility requirements. By taking advantage of these programs, teachers can find relief from student loan debt and focus on their important work in education.
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Loan forgiveness for disabled people
In the United States, there are a variety of options for student loan forgiveness, including for disabled people. The US Department of Education and Department of Defense offer special benefits for military service members with federal student loans.
Disabled people may be eligible for a Total and Permanent Disability (TPD) discharge, which forgives federal student loans for individuals who cannot work due to a severe disability. This can be a physical or mental disability that severely limits one's ability to work now and in the future. Qualifying disabilities include physical conditions like MS, cancer, and heart failure, as well as mental health conditions like severe PTSD or bipolar disorder. Other chronic conditions that significantly limit one's ability to work for at least 60 months may also qualify.
To qualify for a TPD discharge, individuals must provide proof of their total and permanent disability. This can be done through Social Security Disability Benefits, VA determination, or physician certification. Some people may get an automatic discharge if deemed eligible by the Social Security Administration or Veterans Affairs. The application process is free and can be done online at disabilitydischarge.com. Once approved, loan payments are not required while the application is reviewed, which typically takes 1-3 months.
It is important to note that private loans are generally not eligible for TPD discharge. However, some private lenders may offer loan discharge options if the borrower or co-signer becomes totally and permanently disabled.
Veterans with service-connected disabilities may qualify for student loan forgiveness through the TPD discharge program. Those deemed unemployable due to a service-related disability automatically qualify for loan forgiveness under the TPD program. Additionally, dependents of disabled veterans may, in some cases, qualify for forgiveness.
Other Options for Loan Forgiveness
In addition to the TPD discharge program, there are other options for loan forgiveness or discharge. These include:
- Public Service Loan Forgiveness (PSLF): Available for those who work in public service or for a nonprofit organization.
- IDR plans: Monthly payments are based on income and family size, and the remaining balance may be forgiven after a certain number of payments over 20 or 25 years.
- Closed school discharge: If an individual's school closes while they are enrolled or soon after they withdraw, they may be eligible for a discharge of their federal student loan if they meet certain requirements.
- Borrower defense to repayment: Legal grounds for discharging federal Direct Loans for specific reasons.
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Frequently asked questions
The US Department of Education's Office of Federal Student Aid (FSA) is trying to help borrowers repay their loans.
The Department resumed collections on defaulted federal student loans on May 5, 2025, after a five-year hiatus since March 2020.
As of August 2024, nearly 1.9 million borrowers have been unable to start repayment, with 42.7 million borrowers owing more than $1.6 trillion in student debt.
The SAVE Plan is a repayment plan that the Biden Administration used as a loan forgiveness promise to win votes. Federal courts ruled these actions unlawful, and the Department is now urging borrowers to transition to a legal repayment plan.
There are several options for loan forgiveness and discharge, including the Public Service Loan Forgiveness (PSLF) program, and loan forgiveness for teachers and individuals with disabilities. IDR plans can also help make repayment more manageable by basing monthly payments on income and family size.
