Eligibility & Requirements

To be eligible for federal student loan forgiveness programs, you must have federal student loans (not private loans), be in good standing with your loan servicer, and meet specific program requirements. You must be enrolled in a qualifying repayment plan, maintain employment in eligible positions (for programs like PSLF), and make the required number of qualifying payments. Additionally, you cannot be in default on your loans unless you rehabilitate them first.

Most federal student loans are eligible, including Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans for graduate students and parents, and Direct Consolidation Loans. FFEL (Federal Family Education Loan) and Perkins Loans may be eligible if consolidated into Direct Loans. Private student loans, institutional loans, and state-based loans typically do not qualify for federal forgiveness programs. We can help you identify your loan types and determine consolidation needs.

For PSLF, you must work full-time (at least 30 hours per week) for a qualifying employer. Qualifying employers include government organizations at any level, 501(c)(3) non-profit organizations, and other non-profits providing qualifying public services. You must maintain qualifying employment while making all 120 qualifying payments. Part-time work at multiple qualifying employers can count if it totals at least 30 hours per week. Military service also qualifies for PSLF.

Qualifying payments must be made on time, in full, under a qualifying repayment plan while working for a qualifying employer. For PSLF, payments must be made under Direct Loan Program and cannot be made under extended repayment plans with 25-year terms. For IDR forgiveness, payments must be made under income-driven plans like IBR, PAYE, SAVE, or ICR. Payments made during deferment, forbearance, or while in default typically don't count, though some exceptions exist under recent waivers.

Generally, yes. Most forgiveness programs require you to be in good standing with your loan servicer. If your loans are in default, you'll typically need to rehabilitate them or consolidate them into a Direct Consolidation Loan to become eligible. However, some recent policy changes and waivers have allowed borrowers to benefit from forgiveness even if they had periods of default. We can help assess your specific situation and guide you through rehabilitation options if needed.

IDR plans base your monthly payment on several factors, such as your income and family size There's no minimum income requirement, but your payment amount varies based on your adjusted gross income relative to the federal poverty guideline. If your income is very low, your payment could be $0, and these $0 payments count toward forgiveness. You must annually recertify your income and family size to maintain IDR benefits. Most borrowers with financial hardship can qualify for reduced payments under IDR plans.

Direct Parent PLUS loans can qualify for PSLF if the parent works for a qualifying employer. However, Parent PLUS loans are not eligible for most income-driven repayment plans unless they're consolidated into a Direct Consolidation Loan, which then becomes eligible for ICR (Income-Contingent Repayment) and subsequent IDR forgiveness. Graduate PLUS loans have more options and can qualify for various IDR plans. The parent borrower, not the student, must meet employment and other requirements.

Key documents include Employment Certification Forms (ECF) for PSLF, tax returns or pay stubs for IDR recertification, loan servicer statements showing payment history, and employment verification letters. You'll also need forms proving your employer's qualifying status (like IRS determination letters for non-profits). For military service, you'll need military service records. We help gather and organize all required documentation and possibly help to obtain missing payment records.

Most forgiveness programs don't have application deadlines, but you should apply promptly after meeting requirements. However, some special waivers and programs have had time-limited benefits. For example, the PSLF waiver allowed credit for previously non-qualifying payments but had a deadline. It's important to track your progress and apply as soon as you're eligible. Delaying application could mean missing out on special programs or facing potential policy changes.

Yes, but it can complicate the process. Each servicer tracks payments separately, and you'll need to work with each one for forgiveness applications. For programs like PSLF, it's often beneficial to consolidate loans with different servicers into a single Direct Consolidation Loan to streamline the process. However, consolidation resets your payment count, so timing is crucial. We can analyze whether consolidation benefits your specific situation and help coordinate with multiple servicers.

For PSLF, you must maintain qualifying employment throughout the 120-payment period. If you change to a non-qualifying job, those months won't count toward forgiveness, but you won't lose credit for previous qualifying payments. You can resume progress if you return to qualifying employment. For IDR forgiveness, employment doesn't matter - only that you continue making payments under an IDR plan. We recommend submitting Employment Certification Forms annually to track your progress and catch any issues early.

There are no credit score requirements for federal loan forgiveness programs. Having bad credit or a history of financial difficulties doesn't disqualify you. Even if you've filed for bankruptcy, your federal student loans typically remain eligible for forgiveness programs (since student loans are generally not dischargeable in bankruptcy). The key is meeting the specific program requirements, not your overall financial history. This makes forgiveness programs accessible to borrowers facing financial hardship.

Yes, spouses can qualify separately if each meets the individual requirements. Each spouse's employment, payment history, and loan types are evaluated independently. However, if you have joint loans or consolidation loans, the situation becomes more complex. For IDR plans, you can file taxes separately to potentially lower payments, though this might affect other tax benefits. If both spouses work in qualifying public service, both can pursue PSLF for their respective loans.

Don't worry! Many borrowers don't initially meet all requirements. We can help you create a plan to become eligible. This might involve consolidating loans, switching repayment plans, finding qualifying employment, or rehabilitating defaulted loans. You can also start making progress toward forgiveness while working on meeting all requirements. For example, you can begin making qualifying payments while working toward full-time qualifying employment. Every situation is unique, and we specialize in helping borrowers navigate these challenges.

Recent policy changes have generally made forgiveness more accessible. The PSLF waiver temporarily allowed credit for payments that previously didn't qualify. IDR waivers have provided credit for time in forbearance or deferment. New regulations have streamlined processes and fixed counting errors. However, these policies continue to evolve, and some benefits are time-limited. We stay current on all policy changes and ensure you benefit from the most favorable rules available. It's crucial to act quickly when beneficial temporary programs are announced.