How to Forgive Student Loans if You Don’t Qualify for Biden’s Forgiveness Program


How to Forgive Student Loans if You Don’t Qualify for Biden’s Forgiveness Program

Friday, August 26, 2022
ABC News Radio

(NEW YORK) — President Joe Biden has delivered on one of his campaign promises and announced a plan to forgive millions of Americans in student loan debt.

The plan, announced on Wednesday, forgives up to $20,000 for borrowers earning less than $125,000 a year, will either erase the debt of millions of people, dramatically reduce the amount for people who still owe or barely scratch the surface of how much a person owes their lender.

For people who aren’t eligible for Biden’s loan forgiveness or who will still have student loans, options are still available to reduce their debt.

Work for the federal government

People who work for the federal government could ask a government agency to repay their student loans.

According to the United States Office of Personnel Management, a government agency can pay a maximum of $10,000 of an employee’s loan per year or a total of $60,000 per employee while they are in said agency.

An employee who accepts the conditions must remain employed by the agency for at least three years.

Cancellation of civil service loans

The Public Service Loan Forgiveness Program (PSLF) promises to eliminate all of a person’s student loan debt if they work for federal, state, or local governments, nonprofit organizations, and other other eligible jobs in the public service.

The program cancels a borrower’s remaining loan balance after making 120 monthly payments on time for 10 years. Individuals must have received the loan through a federal direct loan program, as other programs are not eligible for PSLF.

People who thought they were making eligible payments while receiving their loan from another federal program have until October 31 to receive credits for payments that are not PSLF-eligible.

Income Oriented Repayment Plans

People who repay their federal loans through one of four income-based repayment plans are eligible to have the remainder of their loans forgiven after 20 or 25 years of qualifying payments, depending on whether the loans were issued. for undergraduate or graduate studies. .

A Government Accountability Office report found that the Department for Education was not always able to track borrower payments properly, making it more difficult for people who thought they were making progress not just in their payments, but also in the cancellation of their debt.

Teacher Loan Forgiveness Program

Through the teacher loan forgiveness program, full-time educators who teach for five consecutive years at a low-income school or educational services agency could see up to $17,500 of their federal loans forgiven.

Teachers may also be eligible to have their entire debt eliminated through the Civil Service Loan Forgiveness Program.


Active military service members are eligible for loan forgiveness of up to $65,000 if they commit to at least three years of service. Service members are also eligible for the PSLF.

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