The current status of federal student loan forgiveness
Federal student loan forgiveness is not happening as a blanket program right now. The Biden administration's plan to cancel up to $20,000 in federal loans per borrower was blocked by the U.S. Supreme Court in June 2023. That means the broad forgiveness that was announced in 2022 will not move forward.
What does exist are narrower forgiveness programs that have been running for years and continue to operate. These target specific groups of borrowers — teachers, public servants, people defrauded by their schools, borrowers with permanent disabilities, and people who attended schools that closed. These programs have their own rules, timelines, and application processes.
The federal government also paused loan payments and froze interest rates starting in March 2020. That pause ended in October 2023, and payments resumed in November 2023. Interest accrual restarted at that time as well.
Key Takeaways
- The broad student loan forgiveness plan announced in 2022 was blocked by the Supreme Court and will not happen.
- Forgiveness programs for teachers, public servants, people with disabilities, and defrauded borrowers continue to operate under their own rules.
- Federal student loan payments and interest resumed in November 2023 after a pause that lasted more than three years.
- Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness are the two largest active forgiveness programs for federal borrowers.
Public Service Loan Forgiveness (PSLF) and who qualifies
Public Service Loan Forgiveness is a federal program that cancels remaining loan balances for borrowers who work in government or nonprofit jobs and make 120 may have access to monthly payments. The 120 payments do not have to be consecutive, but they must be made under an income-driven repayment plan.
may have access to employers include federal, state, and local government agencies; the military; AmeriCorps; Peace Corps; and 501(c)(3) nonprofit organizations. The program does not cover private employers, even if they do public-facing work.
You can check whether your employer qualifies using the Federal Student Aid employer search tool on studentaid.gov. If you work for a nonprofit, you will need its tax ID number. The Department of Education also runs a limited PSLF waiver that ended in October 2023, but the permanent program continues to accept applications year-round.
Teacher Loan Forgiveness and other profession-specific programs
Teacher Loan Forgiveness cancels up to $17,500 in federal loans for teachers who work full-time in low-income schools for five consecutive years. The amount depends on the subject taught and the grade level — math, science, special education, and foreign language teachers in secondary schools receive the maximum amount.
Other profession-specific programs include forgiveness for nurses, doctors, and dentists who work in underserved areas through the National Health Service Corps Loan Repayment Program, and forgiveness for lawyers who work in public interest law through various state bar associations and nonprofit programs. These programs vary significantly by state and employer, so you will need to contact your professional licensing board or employer to learn what is available in your field.
Forgiveness for borrowers who were defrauded or whose schools closed
Borrowers who attended schools that closed while they were enrolled or shortly after they withdrew may be may have access to to loan cancellation through the Closed School Discharge program. You do not need to prove the school was at fault — you only need to show you were enrolled when it closed or within 120 days of closure.
The Borrower Defense to Repayment program cancels loans for borrowers who were defrauded by their school. This includes schools that made false claims about job placement rates, program content, or accreditation status. The Department of Education has processed hundreds of thousands of claims under this program since 2016, though the pace and standards have changed with different administrations.
Both programs require you to submit a claim to your loan servicer or directly to the Department of Education. Processing times vary widely — some claims are resolved in months, others take years. You can check the status of a Borrower Defense claim on the Federal Student Aid website.
Forgiveness for borrowers with permanent disabilities
The Total and Permanent Disability (TPD) Discharge program cancels all federal student loans for borrowers who are unable to work because of a permanent disability. You must provide documentation from the Department of Veterans Affairs, the Social Security Administration, or a physician showing you meet the definition of total and permanent disability.
The application process is straightforward: you submit a form to your loan servicer along with proof of your disability status. Once approved, your loans are discharged and you are no longer responsible for repayment. However, you should know that the discharge may have tax consequences — the cancelled amount may be counted as taxable income in the year of discharge, depending on your situation.
What happened to the broad forgiveness plan
In August 2022, President Biden announced a plan to cancel up to $20,000 in federal loans for borrowers earning under $125,000 per year (or $250,000 for married couples filing jointly). The plan would have affected roughly 40 million borrowers. The Department of Education began accepting applications in October 2022.
In June 2023, the U.S. Supreme Court ruled 6-3 that the plan exceeded the president's authority under the Higher Education Act. The Court found that Congress, not the executive branch, has the power to cancel debt on this scale. The Department of Education stopped processing applications immediately, and no cancellations under this plan took place.
The Biden administration has not announced a replacement plan. Some proposals have circulated in Congress, but none have passed both chambers. State-level forgiveness programs exist in a few states, but these are limited in scope and typically target specific professions or income levels.
Income-driven repayment and the SAVE plan
While broad forgiveness is not happening, the federal government did introduce a new income-driven repayment plan called SAVE (Saving on a Valuable Education) in 2023. This plan lowers monthly payments for many borrowers and includes forgiveness after 20 or 25 years of payments, depending on the original loan amount.
Under SAVE, borrowers earning under 225% of the federal poverty line pay $0 per month. For other borrowers, the payment is calculated as 5% of discretionary income (down from 10% under previous plans). Unpaid interest does not accrue if you are on SAVE and making the required payments, even if that payment is $0.
You can switch to SAVE at any time by contacting your loan servicer or logging into studentaid.gov. The plan does not forgive your loans outright, but it may lower your monthly obligation significantly and reduce the total amount you pay over time.
Frequently Asked Questions
Will the Supreme Court decision be overturned or will Congress pass a new forgiveness plan?
The Supreme Court ruling is final unless Congress passes new legislation. Congress would need to pass a bill specifically authorizing loan forgiveness, which would require approval from both the House and Senate. No such bill has passed, and the political environment makes passage unlikely in the near term.
If I already had loans forgiven under PSLF, will that be reversed?
No. Loans that were already discharged under PSLF, Teacher Loan Forgiveness, or other active programs will not be reversed. The Supreme Court ruling applies only to the broad forgiveness plan that was blocked before it took effect.
Can I get my payments back if I paid during the pause period?
No. The payment pause was optional — you could continue making payments if you chose to. The Department of Education did not refund payments made during the pause period. If you made extra payments, those reduced your principal balance.
Does private student loan forgiveness exist?
Federal forgiveness programs do not apply to private loans. Private lenders set their own policies. Some offer income-driven repayment or hardship programs, but forgiveness is rare. Check your loan documents or contact your lender directly to learn what options may be available.
What should I do if I was counting on the broad forgiveness plan?
Review your loan type and employment situation to see if you may have access to for any active forgiveness programs. Consider switching to the SAVE income-driven repayment plan if you are not already on one — it will lower your monthly payment and may result in forgiveness after 20 or 25 years. You can also contact your loan servicer to discuss your options.