Despite COVID-era student loan payment pauses coming to an end, eligible borrowers have a range of forgiveness options that will remain, even after the transition to a new presidential administration.
Why It Matters
The Biden administration has forgiven nearly $180 billion in student loan debt to approximately five million Americans, according to the Department of Education. Student loan debt has prevented Americans from buying homes, getting married and starting families, according to polls, and sparked debate about how to solve the increasing levels of debt.
What To Know
Temporary changes to the federal Public Service Loan Forgiveness program (PSLF) allowed for more borrowers to qualify for this type of student loan forgiveness. Data collected by Federal Student Aid, an office of the U.S. Department of Education, show that 662,000 borrowers qualified for relief under the temporary PSLF waiver as of mid-July 2023.
The limited PSLF waiver period ended in 2022, but some borrowers who submitted their applications prior to the end date may still be eligible for relief, according to the Federal Student Aid office.
There are 143 Student Loan Forgiveness programs, according to the Education Data Initiative. Here are a few programs that will remain available for borrowers seeking student loan forgiveness.
Public Service Loan Forgiveness Program (PSLF)
Federal Student Aid notes that this is the most common avenue borrowers take when applying for student loan forgiveness. Eligible borrowers are often public servants employed by the federal government or non-profit organizations. A few other qualifications for PSLF include working full-time for an eligible employer, having Direct Loans and being in repayment under an income-driven repayment plan or 10-year standard repayment plan. More requirements may need to be met to qualify for PSLF.
Teacher Loan Forgiveness Program (TLF)
This program is geared toward eligible teachers seeking student debt relief. A primary requirement for TLF is you must serve as a highly-qualified teacher for five consecutive years. You also must teach where the students served are low-income. An important note about TLF in relation to PSLF is that, according to Federal Student Aid, "Borrowers can't receive credit toward TLF and Public Service Loan Forgiveness (PSLF) for the same period of service."
Total and Permanent Disability Discharge (TPD)
Federal Student Aid's official website covering TDP states that "A TPD discharge relieves you from having to repay a William D. Ford Federal Direct Loan (Direct Loan) Program loan, Federal Family Education Loan (FFEL) Program loan, and/or Federal Perkins Loan (Perkins Loan) Program loan or complete a TEACH Grant service obligation on the basis of your total and permanent disability." Borrowers applying for a TDP must provide relevant documentation proving total and permanent disability to be eligible.
What People Are Saying
Michael Lux, an attorney and founder of Student Loan Sherpa, told Newsweek: "While it is hard to say anything with absolute certainty, borrowers should expect that the IDR forgiveness and Public Service Loan Forgiveness programs will continue to be available. These programs were created by statute, and getting new legislation through Congress to significantly reform student loans appears unlikely at this time. Additionally, if these forgiveness programs were terminated, existing borrowers would still likely be grandfathered in because the contract they signed with the government, The Master Promissory Note, detailed both programs."
Miguel Cardona, U.S. Secretary of Education, stated in a press release from the U.S Department of Education: "With the approval of another $4.28 billion in loan forgiveness for nearly 55,000 public servants, the Administration has secured nearly $180 billion in life-changing student debt relief for nearly five million borrowers. The U.S. Department of Education's successful transformation of the PSLF Program is a testament to what's possible when you have leaders, like President Biden and Vice President Harris, who are relentlessly and unapologetically focused on making government deliver for everyday working people."
Virginia Foxx (R-NC), Chairwoman of the Education and the Workforce Committee, said in a press release from the Committee on January 2, 2025: "There's no surprise here: the Biden-Harris administration has refused to admit that its student loan schemes are illegal, and instead has tried to stretch every possible law to deliver on its outrageous campaign promise. Thankfully, the courts have seen through these shams, and in eighteen days, the jig will finally be up."
What Happens Next
Student loan debt forgiveness is still possible in many ways, but most programs have strict requirements for eligibility. Borrowers should contact their loan servicer to understand the full perspective of options available when exploring student loan forgiveness.
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