Student loan forgiveness has been an ongoing topic during election cycles and Supreme Court rulings as well as over social media platforms and late-night conversations between partners. While some call for sweeping student loan forgiveness policies, others argue that borrowers must pay what they borrowed, just like any other form of debt.
The state of student loan forgiveness has been in flux the past few years. Read on to learn more about the history of student loan forgiveness, changes under the new administration, and steps that borrowers can take to qualify.
Student Loan Forgiveness History
Student loan forgiveness has been impacted by Congressional acts, presidential reforms, and major societal impacts.
Congressional and Presidential Reform
In 2007, President George W. Bush signed the College Cost Reduction and Access Act, which was the federal law that first introduced the concept of student loan forgiveness. With this law, graduates that worked in the public service sphere, who made consistent monthly payments to their student loans, would have their debt forgiven after 10 years.
Since its enactment, the Public Service Loan Forgiveness (PSLF) has been the only form of loan forgiveness available. However, in 2022, President Joe Biden announced sweeping student loan forgiveness changes. They included:
- Up to $20,000 in student loan debt relief for Pell Grant recipients whose annual income is less than $125,000 ($250,000 for married couples).
- Change the existing structures to allow for more borrowers to qualify for student loan forgiveness.
Shortly after the Biden administration began accepting applications for student loan debt relief, several states and interest groups filed lawsuits, claiming the forgiveness policies were unlawful. Furthermore, the Supreme Court blocked the administration’s plan, stating that Congress should be the body to authorize student loan forgiveness and not the President.
COVID-19 Impacts
In 2020, borrowers did not have to make payments to their federal student loans, nor have their loans been accruing interest, a measure enacted by President Donald Trump during the Coronavirus pandemic. Beginning in September 2023, student loans began accruing interest once more and borrowers were required to begin making monthly payments.
Current State of Student Loan Forgiveness
On July 1, 2026 new Public Service Loan Forgiveness (PSLF) rules will change which employers qualify. An employer is eligible for PSLF when Employment Certification Forms (ECFs) are submitted and verified. Under the new rules, the Department of Education will have the authority to disqualify certain organizations from PSLF eligibility. They have stated they will “ensure the definition of ‘public service’ excludes organizations that engage in activities that have a substantial illegal purpose.” Learn more about Qualifying Employment under the Trump administration’s reforms for public service loan forgiveness.
How to Qualify for Student Loan Forgiveness
- Be employed by a U.S. federal, state, local, or tribal government or a qualifying not-for-profit organization.
- Work full-time for that agency or organization.
- Have Direct Loans – or consolidate federal loans into a Direct Consolidation Loan.
- Repay loans under the Income-Driven or Standard Repayment plans. (NOTE: for new loans issued after July 1, 2026, only two forms of repayment will be available: Repayment Assistance Plan (RAP) and a Standard Repayment Plan. For loans issued before July 1, 2026, federal student aid borrowers will need to switch to one of the valid repayment plans before July 1, 2028, to continue to qualify for student loan forgiveness).
- Make a total of 120 qualifying monthly loan payments.
Because 120 qualifying monthly loan payments are required, it is guaranteed that loan forgiveness will take at least 10 years. You can change employers as long as they are an eligible PSLF employer. For many borrowers, this time commitment is worth it.
What is the PSLF Tool?
To help borrowers along their PSLF journey, the Department of Education has created an online tool to keep them eligible and on track for loan forgiveness: the PSLF tool. Using the tool is simple:
- Create an account.
- Search for an eligible employer.
- Learn which actions must be taken to become PSLF eligible.
- Generate a PSLF form. With this step, borrowers must provide the email address
of an authorized official who can certify their employment and sign the form. - Submit the PSLF form.
- Once the form has been processed, borrowers will be able to view their PSLF
progress, like the number of qualifying payments made.
Which Repayment Plans Qualify?
There are currently four repayment plans that borrowers must be using to qualify for student loan forgiveness; however, the One Big Beautiful Bill Act (OBBBA) will impact these repayment plans over the next few years. The current plans are:
- Income-Based Repayment (IBR) Plan
- Income-Contingent Repayment (ICR) Plan
- Pay As You Earn (PAYE) Repayment Plan
- Saving on a Valuable Education (SAVE) Repayment Plan
While the OBBBA will introduce new borrowers to two simple repayment plans on July 1, 2026, current borrowers will have two years to migrate to the new payment plans. The deadline for moving to the new repayment plans is July 1, 2028, for existing borrowers. The two repayment options will be:
- New Standard Repayment Plan — This is a fixed-payment plan with repayment spanning 10 – 25 years, depending on the amount borrowed. Borrowers on this repayment plan can qualify for loan forgiveness if their loan term is 15 years or more.
- Repayment Assistant Program — This plan takes into account Adjusted Gross Income (AGI) of the borrower and calculates payments at 1% – 10% of that figure. If the loan term is greater than 10 years and the borrower works in the public sector for an eligible employer, they will qualify for loan forgiveness.
Learn more about Public Service Loan Forgiveness (PSLF).
