Frequently Asked Questions

Student loan forgiveness is a federal program that cancels some or all of your federal student loan debt under specific circumstances. These programs were created by Congress to provide relief to borrowers and encourage public service careers.

Main forgiveness programs include:

• • Public Service Loan Forgiveness (PSLF): 100% forgiveness after 120 qualifying payments while working full-time for qualifying public service employers
• • Income-Driven Repayment (IDR) Forgiveness: Remaining balance forgiven after 20-25 years of qualifying payments
• • Teacher Loan Forgiveness: Up to $17,500 forgiveness for teachers in qualifying low-income schools
• • Discharge Programs: Complete loan elimination due to disability, school closure, or fraud

Each program has specific eligibility requirements, qualifying loan types, and application processes. The key is identifying which programs you qualify for and ensuring you meet all requirements to maximize your forgiveness potential.

While you can technically apply for forgiveness programs on your own, the process is notoriously complex and error-prone. Many borrowers make costly mistakes that delay or prevent approval.

Common challenges borrowers face:

• • Choosing the wrong repayment plan or forgiveness program
• • Missing critical deadlines or annual recertification requirements
• • Incomplete or incorrect paperwork that delays processing
• • Not understanding loan consolidation impacts on forgiveness eligibility
• • Failing to properly document employment or payment history

Professional assistance provides several key benefits: expert program selection, accurate paperwork completion, deadline management, ongoing monitoring, and advocacy with loan servicers when issues arise.

Our clients have a 95% approval rate compared to the national average of 2.2% for PSLF applications submitted without professional assistance. The investment in expert help typically pays for itself many times over in successfully obtained forgiveness.

Savings vary dramatically based on your loan balance, income, family size, employment, and qualifying program. However, the potential savings are substantial:

Potential savings by program:

• • PSLF: 100% of remaining loan balance (average $67,000+ forgiveness)
• • IDR Plans: $15,000-$50,000+ depending on income and loan balance
• • Teacher Forgiveness: Up to $17,500 in direct forgiveness
• • Discharge Programs: 100% loan elimination in qualifying circumstances

Our clients save an average of $45,000, with many achieving complete loan forgiveness. Beyond the immediate savings, forgiveness also eliminates ongoing interest accumulation, which can add up to tens of thousands more over the life of the loan.

Example: A teacher with $80,000 in loans earning $45,000/year could qualify for both Teacher Loan Forgiveness ($17,500) and PSLF for the remaining balance, potentially saving the entire $80,000 plus interest that would have accumulated over 25+ years of standard repayment.

Yes, all federal student loan forgiveness programs are completely legitimate and established by federal law. These programs are administered by the U.S. Department of Education and have forgiven billions of dollars in student loans.

Program legitimacy facts:

• • PSLF was created by Congress in 2007 and has forgiven over $3 billion in loans
• • IDR plans are established federal programs with forgiveness provisions
• • Teacher Loan Forgiveness has been helping educators since 1998
• • All programs are managed directly by the Department of Education

Warning signs of scams: Be wary of companies that charge large upfront fees, promise instant forgiveness, guarantee specific outcomes, or pressure you to sign immediately. Legitimate services never charge government fees, make unrealistic promises, or require payment before providing services.

Simple Aid Solutions works exclusively with official federal programs. We never charge upfront fees, never promise outcomes we cannot deliver, and maintain full transparency about program requirements and realistic timelines.

Private student loans are not eligible for federal forgiveness programs like PSLF or IDR forgiveness. However, there are still options available for private loan borrowers experiencing financial hardship.

Options for private loan relief:

• • Refinancing: Potentially lower interest rates and monthly payments
• • Loan Modification: Negotiate payment terms directly with lender
• • Hardship Programs: Temporary payment reduction or forbearance
• • Discharge in Bankruptcy: Possible in extreme circumstances (very rare)
• • Death/Disability Discharge: Some private lenders offer this option

If you have both federal and private loans, we recommend prioritizing federal loan forgiveness strategies while exploring refinancing or modification options for private loans.

Our team can help evaluate your private loan options and connect you with reputable refinancing partners when appropriate, while focusing primarily on maximizing federal loan forgiveness opportunities.

The tax treatment of forgiven student loans depends on the specific forgiveness program:

Tax-free forgiveness:

• • PSLF: 100% tax-free - no taxes owed on forgiven amount
• • Teacher Loan Forgiveness: Tax-free forgiveness
• • Disability Discharge: Generally tax-free
• • Closed School Discharge: Tax-free

Potentially taxable forgiveness:

• • IDR Forgiveness: Under current law, forgiven amounts may be taxable as income
• • However, recent legislation has made IDR forgiveness tax-free through 2025
• • Future tax treatment may depend on Congressional action

We stay current on all tax law changes and help our clients understand the tax implications of their forgiveness strategy. Even when taxes apply, the amount owed is typically far less than the loan balance that would have been paid over time.

Most federal loan borrowers qualify for at least one forgiveness program. Eligibility varies by program, but there are options for almost every situation.

General qualification factors:

• • Loan Type: Must have eligible federal student loans (Direct Loans, Stafford, PLUS, some Perkins)
• • Payment History: Must be in good standing or able to rehabilitate defaulted loans
• • Employment: Some programs require specific employment (public service, teaching, etc.)
• • Income Level: IDR programs base payments on income and family size
• • Repayment Plan: Must be enrolled in qualifying payment plans

Program-specific qualifications:

• • PSLF: Full-time public service employment + Direct Loans + qualifying payments
• • IDR Forgiveness: Enrolled in IDR plan + qualifying payments for 20-25 years
• • Teacher Forgiveness: Teaching in qualifying low-income schools for 5 consecutive years
• • Discharge Programs: Total disability, closed school, or borrower defense circumstances

Our free assessment evaluates your specific situation across all available programs to identify every option you qualify for and create the optimal strategy for maximum forgiveness.

Only federal student loans are eligible for federal forgiveness programs. However, some older federal loan types may need to be consolidated to qualify for certain programs.

Directly eligible federal loans:

• • Direct Subsidized and Unsubsidized Loans
• • Direct PLUS Loans (Graduate and Parent)
• • Direct Consolidation Loans

May require consolidation for some programs:

• • FFEL Loans (Stafford, PLUS, Consolidation)
• • Perkins Loans (limited forgiveness programs available)
• • Health Education Assistance Loans (HEAL)

Not eligible:

• • Private student loans from banks, credit unions, or other private lenders
• • Institutional loans directly from schools
• • State-based loans (unless part of federal programs)

We help determine which of your loans qualify for which programs and guide you through any necessary consolidation process to maximize your forgiveness eligibility. Consolidation decisions are crucial and should be made strategically to preserve existing benefits.

Yes, PSLF requires full-time employment (30+ hours/week) with a qualifying public service employer. However, the definition of "public service" is broader than many people realize.

Qualifying public service employers include:

• • Government Organizations: Federal, state, local, or tribal government agencies
• • 501(c)(3) Nonprofit Organizations: Registered tax-exempt nonprofits
• • AmeriCorps and Peace Corps: Full-time volunteer service
• • Public Schools and Universities: Public education institutions
• • Public Hospitals and Health Systems: Government-operated healthcare
• • Public Interest Law Organizations: Legal aid and public defender offices

Examples of qualifying jobs:

• • Teachers, professors, school administrators
• • Nurses, doctors, social workers at public facilities
• • Police officers, firefighters, EMTs
• • Government employees (city hall, DMV, courts, etc.)
• • Nonprofit employees (charities, foundations, advocacy groups)

If you don't qualify for PSLF: You may still qualify for Income-Driven Repayment forgiveness, Teacher Loan Forgiveness (for educators), or discharge programs based on other circumstances.

We help verify employer eligibility through the Employment Certification Form (ECF) process and explore alternative forgiveness options if PSLF isn't available to you.

You cannot qualify for most forgiveness programs while your loans are in default, but you can get out of default and then become eligible. There are several strategies to rehabilitate defaulted loans.

Options to get out of default:

• • Loan Rehabilitation: Make 9 consecutive, on-time, full payments of an agreed amount
• • Full Payment: Pay the entire loan balance, including collection costs
• • Direct Consolidation: Consolidate defaulted loans into a new Direct Consolidation Loan

Loan Rehabilitation (most common option):

• • Payment amount based on income and expenses (can be as low as $5/month)
• • After 9 payments, loans return to good standing
• • Default notation removed from credit report
• • Regain eligibility for federal aid and forgiveness programs

Direct Consolidation option:

• • Can consolidate defaulted loans immediately
• • Agree to repay under IDR plan or make 3 consecutive payments
• • Creates new loan with no default status
• • Immediate eligibility for forgiveness programs

We provide comprehensive assistance to get your loans out of default using the most beneficial strategy for your situation, then immediately enroll you in appropriate forgiveness programs to maximize your long-term savings.

There is no minimum or maximum income requirement to qualify for Income-Driven Repayment (IDR) plans. These plans are designed to make payments affordable regardless of income level.

How IDR payment calculations work:

• • Income-Based Repayment (IBR): 10-15% of discretionary income
• • Pay As You Earn (PAYE): 10% of discretionary income
• • Revised Pay As You Earn (REPAYE): 10% of discretionary income
• • Income-Contingent Repayment (ICR): 20% of discretionary income or fixed 12-year payment

Discretionary income definition: Your adjusted gross income minus 150% of the federal poverty guideline for your family size and state of residence.

Payment examples:

• • Low income: If your income is below 150% of poverty level, your payment may be $0
• • Moderate income: $40,000 income, family of 2 = approximately $200/month payment
• • Higher income: $80,000 income, family of 4 = approximately $400/month payment

IDR plans also include automatic forgiveness after 20-25 years of qualifying payments, making them beneficial for borrowers at any income level who want predictable payments and eventual forgiveness.

You cannot use multiple forgiveness programs simultaneously for the same loans, but you may qualify for different programs at different times or combine certain programs strategically.

Strategic program combinations:

• • Teacher Loan Forgiveness → PSLF: Get $17,500 Teacher forgiveness first, then pursue PSLF for remaining balance
• • Partial discharge → Forgiveness: Discharge some loans due to school closure/fraud, forgive others through PSLF/IDR
• • Consolidation strategy: Discharge some loans, consolidate others for forgiveness eligibility

Program conflicts to avoid:

• • PSLF + IDR forgiveness: Cannot count same payments toward both programs
• • Teacher forgiveness + PSLF: Using Teacher forgiveness resets PSLF payment count to zero
• • Discharge + forgiveness: Cannot seek forgiveness on discharged loans

Optimal strategy example: A teacher with $60,000 in loans might use Teacher Loan Forgiveness to eliminate $17,500, then switch to PSLF for the remaining $42,500, maximizing total forgiveness.

We analyze your complete loan portfolio and career trajectory to determine the optimal combination and sequence of programs that will maximize your total forgiveness over time.

The initial application with us takes 10-15 minutes. Our review process typically takes 24-48 hours. Once we determine your best options, the federal application process varies by program: IDR applications are usually processed within 2-4 weeks, while PSLF applications can take 2-3 months. We handle all the paperwork and follow-up for you.

Required documents vary by program but typically include: loan information, tax returns, pay stubs, employment certification, and personal identification. We provide a complete checklist tailored to your specific programs and help you gather everything needed. Many documents can be obtained directly from your loan servicer or employer.

After applying, we monitor your application status, handle any requests for additional information, and keep you updated on progress. Once approved, we help you understand your new payment terms and continue providing ongoing support including annual recertifications, payment monitoring, and assistance with any issues that arise.

We offer free consultations and transparent pricing with no hidden fees. Our service fees are only charged after we've confirmed you qualify for beneficial programs and you've agreed to proceed. Fees vary based on your specific situation and the programs you qualify for. We never charge upfront fees and you pay nothing unless we can help you.

No, the federal government does not charge fees to apply for forgiveness programs. All federal student loan forgiveness programs are free to apply for directly with your loan servicer. Any fees you pay are for our professional service in helping you navigate the complex application process and ongoing management.

We stand behind our work with satisfaction guarantees. If we cannot successfully enroll you in a beneficial program as promised, you receive a full refund. We also provide ongoing support to ensure your applications are processed correctly and you receive the maximum benefits available to you.