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How to Apply for Student Loan Forgiveness

how to apply for student loan forgiveness

Are you thinking of applying for a forgiveness program as a last-ditch attempt to get rid of the annoying student loan payments? Borrowers often fall under the pretense that their loan payments will suddenly vanish after filing their applications. Unfortunately, things are a lot more complicated than that. There are a lot of things to consider, especially when it comes to how to apply for student loan forgiveness. Only after you’ve considered numerous aspects, should you start filing your applications? This blog post will take you through often-overlooked details so that your student loans are forgiven once and for all.

Options for student loan forgiveness

how to apply for student loan forgivenessForgiveness of student loans means your student loan is paid for, so that you no longer have to make further payments. Unfortunately, only students who have taken a federal loan can benefit from student loan forgiveness.

There are three conventional methods by which you can apply for loan forgiveness. 

  • The first one is Public Service Loan Forgiveness (PSLF). Here the credit of students is erased in return for working for a governmental organization. 
  • The second one is income-driven repayments, which is the one with the most prolonged duration. 
  • The last one is the Forgiveness of credit for teachers. 

We cover the first and the second one in this article. In the case of forgiveness of credit for teachers, a maximum of $17,500 can be forgiven. However, In PSLF and EDP, you can have your entire loan erased.

Credit forgiveness for government services

To be eligible for credit forgiveness for governmental service, you must have served as an employee in the civil service. You can also be a part of a non-profit government organization or any other relevant entity. Bear in mind that you have to do a job for sharply a decade at a suitable agency and complete 120 payments prior to submitting your application for forgiveness. By the way, you can alter your workplace as long as it is in the public sector. This program offers the benefit of having no tax debt on the loan amount forgiven. 

How to keep on course for PSLF

For staying on course for the forgiveness of student loans via PSLF, you should present the Public Service Loan Forgiveness Employment Certification Form. You have to submit this student loan forgiveness form once every year. While uploading this application, the loans will reach a loan service agency called FedLoan. Fedloan will deal with everything related to PSLF. They will inform you regarding the number of correct payments made by you. You can also check the history of your payments in the servicing account of FedLoan. You will have to submit a student loan forgiveness application every year to ensure you remain on course for all 120 payments. By doing this, you will have your payment history updated, too. 

Earning-driven payback program

how to apply for student loan forgivenessDespite the fact that this forgiveness alternative needs a little longer time, it can help you achieve forgiveness. One of the ways on how to register for student loan forgiveness is Earning-driven payback program that is divided into four parts. These are earning-based payback, earning-Contingent payback, compensate as acquired, and revised compensation as you acquire. By choosing these plans, you will pay around 10-20% of your discretionary income for a minimum of 20, a maximum of 25 years. 

Here the details are specific to the program you select, yet all the alternatives propose forgiveness of student credit once you finish payments. Hence, if you still have a payable amount 20-25 years later, the remaining loan amount is excused. The negative aspect of this program is according to present laws, you will have to pay taxes on that forgiven quantity. So, if you will apply for loan forgiveness through this program, be prepared for taxes. A way to do this is by starting to save money today. This is possible with the help of some tools, like Betterment.

Remaining on course for EDP

Every year you should reconfirm to stick to an EDP program. Further, make sure you read the messages and emails from your loan service entity. This is important if you aim to achieve the forgiveness of student loans by any EDP program. It is highly recommended to recertify your stay on an EDP program. As well as to share the data regarding family capacity and earnings have to be considered. Once you reconfirm, your payments might be refreshed. Yet contingent upon your plan, it is always placed between 10 and 20% span. In case you do not reaffirm your stay, you might be dropped out of your plan. You may also need to monthly pay some amounts via Standard Payback Plan that would substantially escalate your payment.

How to apply for student loan forgiveness

Timing is a crucial part while applying for forgiveness for student credit. It is practically impossible to register for forgiveness if you have not met all the criteria. Moreover, the forgiveness of a student does not occur immediately. It is not assured 100% either. Once you submit the loan forgiveness application, you will have to wait for it to be accepted. As reported by The Institute for College Access & Success, just four debtors have obtained forgiveness through EDP plans. In 2018, the first part of borrowers was qualified for the forgiveness of student credit via PSLF. 

Nevertheless, the outcome was not good. Only one percent of debtors got forgiveness for a student loan. We are sure that the rate of forgiveness for student loans will get better over time. This will happen thanks to the rising number of applicants. For the moment, you can check here all you need to be aware of how to apply for student loan forgiveness.

Registering for student credit forgiveness via PSLF

To be able to register for the forgiveness of student credit via PSLF, you should have fulfilled 120 remittances. It is not mandatory to make those payments consecutively. Once you have met this requirement, you must upload the official Public Service Loan Forgiveness Form. At the time of submission, you should still be a part of a suitable organization. So do not resign from your job in the governmental division right away. Then, when you finish filling the Public Service Loan Forgiveness form, share it with FedLoan Servicing. FedLoan servicing is the formal credit servicer of the PSLF program. Lastly, you have three choices while presenting student loan forgiveness applications. These include mail, fax, and website. 


how to apply for student loan forgivenessIn case FedLoan Servicing is your present loan servicer, submit your application to In addition, you might have to introduce the Public Service Loan Forgiveness Employment Certification Form. If you had not uploaded this document for years, you would also have to add it to prove that you worked at an eligible organization. It depends on timing, documents provided and more, for you to get an update regarding your student loan forgiveness. If your application is acknowledged, your credit will be erased. This will include both the principal amount and accumulated interest. If it is rejected, you will get clarity of why. You will also have to keep making remittances on your payback program. 

Registering for the forgiveness of student credit via EDP

Even though forgiveness via EDP plans is possible, it will take a long time because of the prolonged repayment period. You will have to stick to an IDR program for the whole year and reconfirm your earnings each year. Only when your repayment term ends, and the payable amount still exists will your loans be forgiven. Just keep in mind that taxes are payable too. 

Applying for the forgiveness of student credit through EDP is not as well organized as Public Service Loan forgiveness program. If you choose this option for your loan forgiveness, ensure you work firmly with your loan servicer.