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Important Updates

News of Note

Explore affordable repayment plans, including the new Saving on a Valuable Education (SAVE) Plan (formerly the REPAYE plan). To learn more about the SAVE plan and other student loan benefits, use the Loan Simulator Tool at StudentAid.gov.


Be on the Lookout for Updates

In Spring 2024, you will see improvements to your experience in managing your federal student loans. Beginning March 11, 2024, we will release updates to the look and feel of our website and you will then need to visit us at our new web address, Edfinancial.StudentAid.gov. Additionally, our emails will now come from .gov email addresses. 

Fast Facts

  • In certain situations, you can have your federal student loans forgiven, canceled, or discharged. That means you won't have to pay back some or all of your loan(s).
  • The terms "forgiveness," "cancellation," and "discharge" mean essentially the same thing.
  • Public Service Loan Forgiveness is the most common way people apply to have their student loans forgiven.

Ways To Qualify for Loan Forgiveness, Cancellation, or Discharge

Teacher Loan Forgiveness

You may be eligible for Teacher Loan Forgiveness of up to $17,500 if

  • you teach full time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency, and
  • you have a Direct Loan or Federal Family Education Loan (FFEL) Program loan.

Note: You can’t receive credit toward Teacher Loan Forgiveness and Public Service Loan Forgiveness (PSLF) for the same period of teaching.

Apply for Teacher Loan Forgiveness

Public Service Loan Forgiveness (PSLF)

You may be able to receive Public Service Loan Forgiveness (PSLF) if

  • you work in childcare or in early childhood, public, or not-for-profit education, and
  • you have a Direct Loan.*

The PSLF Program forgives the remaining balance on your Direct Loans after you’ve made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.

*Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans may become eligible for PSLF if you consolidate your loans into the Direct Loan Program.

In 2024, we will implement the one-time account adjustment, which will provide additional credit toward PSLF and income-driven repayment (IDR) for periods of repayment, forbearance, and deferment that normally don’t count toward loan forgiveness. Borrowers who have commercially managed FFEL or Perkins loans should apply for a Direct Consolidation Loan by the end of 2023 to get the full benefits of the one-time account adjustment.

Note: You can’t receive credit toward Teacher Loan Forgiveness and PSLF for the same period of teaching.

Apply for PSLF

Public Service Loan Forgiveness (PSLF)

You may be able to receive Public Service Loan Forgiveness (PSLF) if

  • you work in federal, state, local, or tribal government, and
  • you have a Direct Loan.*

The PSLF Program forgives the remaining balance on your Direct Loan after you’ve made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.

*Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans may become eligible for PSLF if you consolidate your loans into the Direct Loan Program.

In 2024, we will implement the one-time account adjustment, which will provide additional credit toward PSLF and income-driven repayment (IDR) for periods of repayment, forbearance, and deferment that normally don’t count toward loan forgiveness. Borrowers who have commercially managed FFEL or Perkins loans should apply for a Direct Consolidation Loan by the end of 2023 to get the full benefits of the one-time account adjustment.

Apply for PSLF

Public Service Loan Forgiveness (PSLF)

You may be able to receive Public Service Loan Forgiveness (PSLF) if

  • you’re employed by a qualifying not-for-profit organization, and
  • you have a Direct Loan.*

The PSLF Program forgives the remaining balance on your Direct Loan after you’ve made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.

*Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans may become eligible for PSLF if you consolidate your loans into the Direct Loan Program.

In 2024, we will implement the one-time account adjustment, which will provide additional credit toward PSLF and income-driven repayment (IDR) for periods of repayment, forbearance, and deferment that normally don’t count toward loan forgiveness. Borrowers who have commercially managed FFEL or Perkins loans should apply for a Direct Consolidation Loan by the end of 2023 to get the full benefits of the one-time account adjustment.

Apply for PSLF

Public Service Loan Forgiveness (PSLF)

You may be able to receive Public Service Loan Forgiveness (PSLF) if

 

  • you’re employed by a qualifying not-for-profit organization, and
  • you have a Direct Loan.*

The PSLF Program forgives the remaining balance on your Direct Loan after you’ve made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.

*Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans may become eligible for PSLF if you consolidate your loans into the Direct Loan Program.

In 2024, we will implement the one-time account adjustment, which will provide additional credit toward PSLF and income-driven repayment (IDR) for periods of repayment, forbearance, and deferment that normally don’t count toward loan forgiveness. Borrowers who have commercially managed FFEL or Perkins loans should apply for a Direct Consolidation Loan by the end of 2023 to get the full benefits of the one-time account adjustment.

Apply for PSLF

Total and Permanent Disability Discharge

You may qualify for a total and permanent disability discharge of your federal student loans and/or your Teacher Education Assistance for College and Higher Education (TEACH) Grant* service obligation if

  • you’re totally and permanently disabled, and
  • you have a Direct Loan, Federal Family Education Loan (FFELP) Program loan, or Perkins Loan.

*TEACH Grant service obligations are discharged if the grant recipient dies, or if the recipient is subject to extended periods of qualifying military service.

Apply for TPD Discharge

You may be eligible for income-driven repayment (IDR) loan forgiveness if you have been in repayment for 20 or 25 years.

An IDR plan bases your monthly payment on your income and family size. If you repay your loans under an IDR plan, any remaining balance on your student loans will be forgiven after you make a certain number of payments over 20 or 25 years. Past periods of repayment, deferment, and forbearance might now count toward IDR forgiveness because of the one-time IDR adjustment that will occur in 2024. Borrowers with certain non-Direct loans may need to take action by the end of 2023 to benefit from this adjustment.

In summer 2023, we began implementing the Saving on a Valuable Education (SAVE) Plan, which is our most affordable repayment plan ever. Borrowers who have signed up for the current REPAYE plan will be automatically enrolled in SAVE.

If you’re already on an IDR plan, check to see if you’re on the REPAYE Plan by logging in to StudentAid.gov and going to your My Aid page. There, you can scroll down and view your loans. Each loan will list a repayment plan. If you see that you’re in the REPAYE Plan, you’ll automatically be enrolled in the SAVE Plan.

If you’re on a different repayment plan, you’ll need to switch into REPAYE now, or SAVE once it’s available, to receive the benefits of the SAVE Plan. If you don’t have a StudentAid.gov account, you can create an account.

Note: If you have Parent PLUS loans, you must consolidate your loans to become eligible for an IDR plan.

Apply for IDR Plan

In some cases, your school’s actions may be the basis for discharge of your loan(s).

Closed School Loan Discharge

You may be eligible for a closed school discharge of your federal student loan if

  • your school closes while you’re enrolled or soon after you withdraw, and
  • you have a Direct Loan, Federal Family Education Loan (FFEL) Program loan, or Federal Perkins Loan.
Apply for Closed School Discharge

Borrower Defense Loan Discharge

You may be eligible for borrower defense discharge of your federal student loan if

  • you took out the loan to attend a school that misled you or engaged in other misconduct in violation of certain laws, and
  • you have a Direct Loan.*

*Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans may become eligible for PSLF if you consolidate your loans into the Direct Loan Program.

Apply for Borrower Defense Discharge

False Certification Discharge

You may be eligible for a false certification discharge of your federal student loan if

  • your school falsely certified your eligibility to receive a loan, and
  • you have a Direct Loan or Federal Family Education Loan (FFEL) Program loan.
Apply for False Certification Discharge

Unpaid Refund Discharge

You might be eligible for an unpaid refund discharge of a portion of your federal student loan(s) if

  • you withdrew from school,
  • the school didn’t make a required return of loan funds to the loan servicer, and
  • you have a Direct Loan or Federal Family Education Loan (FFEL) Program Loan.
Apply for Unpaid Refund Discharge

More Loan Discharge and Cancellation Options

You may be able to get your loans(s) discharged in other situations.

As with loans made to students, a parent PLUS loan can be discharged if you die, if you (not the student on whose behalf you obtained the loan) become totally and permanently disabled, or if your loan is discharged in bankruptcy. Your parent PLUS loan may also be discharged if the child for whom you borrowed dies.

In addition, all or a portion of a parent PLUS loan may be discharged if

  • the student for whom you borrowed couldn’t complete their program because the school closed;
  • your eligibility to receive the loan was falsely certified by the school;
  • the student withdrew from school, but the school didn’t refund your loan money that it was required to pay under applicable laws and regulations;
  • you reach 25 years in repayment on a Direct Consolidation Loan on the Income-Contingent Repayment (ICR) Plan; or
  • you work in public service and apply for Public Service Loan Forgiveness (PSLF).

Note: Parent borrowers with unconsolidated Direct Loans or ED-held FFEL PLUS loans are eligible for the one-time account adjustment, which will provide additional credit for both IDR and PSLF.

View Loan Forgiveness and Discharge Forms

Forgery is the creation of a false written document or alteration of a genuine one, with the intent to defraud. Victims of identity theft are frequently also the victims of forgery.

You might be eligible for a forgery loan discharge of a federal student loan if

  • you believe you were the victim of a fraudulent loan discharge, and
  • you have a Direct Loan, Federal Family Education Loan (FFEL) Program loan held by ED, or Federal Perkins Loan held by ED.
Apply for Forgery Discharge

In some cases, you can have your federal student loan discharged if

  • you’ve declared bankruptcy, and
  • you have a Direct Loan, Federal Family Education Loan (FFEL) Program loan, or Federal Perkins Loan.

Discharge in bankruptcy may be granted if you file a separate action, known as an "adversary proceeding," asking that the bankruptcy court find that repaying the loan would impose undue hardship on you and your dependents.

Learn about what you must do to ask the court to discharge in bankruptcy your federal student loan.

Federal student loans will be discharged if the borrower or the student on whose behalf a PLUS loan was taken out dies. This is true whether the loan is a Direct Loan, Federal Family Education Loan (FFEL) Program loan, or Federal Perkins Loan.

Learn more about discharge due to death and what documentation servicers need in order to have the loans discharged.

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