Who will not get loan forgiveness?
Private student loans won't get student loan cancellation
If successful, all of the borrower's debt is forgiven. You're not eligible for federal student loan forgiveness programs if you have private loans, but there are other strategies for managing private loan debt. NerdWallet's ratings are determined by our editorial team.
Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones. ED will continue to discharge loans as borrowers reach the required number of months for forgiveness.
Your loans should automatically qualify for forgiveness after you've spent 20 or 25 years in repayment. Reach out to your loan servicer about any steps you may need to take.
Federal loans are issued by the U.S. Department of Education while private student loans originate from banks, credit unions or online lenders. That difference is the reason why private student loan forgiveness is so unattainable.
Lenders may look at your employment history, credit score, debt-to-income ratio, and enrollment status at your school. One of the most common reasons why a student might not qualify for a private student loan is because they don't meet their lender's FICO® Credit Score criteria.
Grades Slipped or Haven't Completed Enough Credits
You need to make satisfactory academic progress in college or career school in order to keep getting federal student aid. Talk to your school about whether you can appeal the decision that made you ineligible to continue receiving federal student aid.
Income-driven repayment forgiveness stats
As of June 1, 2021, only 157 of potentially millions of borrowers have received debt cancellation through income-driven repayment forgiveness, according to a March 2022 report by the Government Accountability Office.
For federal student loans, the top of a student loan bill will have the name of your student loan servicer and the name of your federal student loan program. For private student loan bills, you'll see the name of your private lender on the bill instead.
- Borrowers with balances greater than what they originally borrowed. ...
- Borrowers who've been in repayment for at least 25 years. ...
- Borrowers who attend programs that did not provide sufficient financial value.
What will happen to my credit when my student loans are forgiven?
How will student loan forgiveness affect your credit scores? If you're able to secure loan forgiveness, you might see your credit scores drop slightly. That's because student loans, like any other loan, contribute to your credit mix, or the different types of debt that you hold.
Be sure that your employment qualifies you for student loan forgiveness. For PSLF you must make 120 on-time payments while working for a qualifying employer. That's 10 years of on-time payments, so it may be a while before you qualify.
Closed – the loans were sent to a new servicer. * Zero balance – the Education Department may have forgiven the student loan debt, but what's more likely is that the loans were moved to a different servicer.
Sallie Mae does not offer any loan forgiveness programs. If you're having trouble repaying your loans because of an undue hardship and file for bankruptcy, your Sallie Mae loans might be discharged, meaning you won't need to repay them.
There's no way to transfer private student loans to federal. Ryan Lane is an editor on NerdWallet's small-business team. He joined NerdWallet in 2019 as a student loans writer, serving as an authority on that topic after spending more than a decade at student loan guarantor American Student Assistance.
Private student loans, on the other hand, have a statute of limitations of anywhere from three to 10 years. After this, they become time-barred. The exact time frame depends on your state of residence.
It is possible to get a student loan even if you have bad credit or no credit history. That said, it will be more difficult to qualify, and rates will be higher.
The Supreme Court struck down President Joe Biden's student loan forgiveness program Friday, blocking millions of borrowers from receiving up to $20,000 in federal student debt relief, just months before student loan payments are set to restart after a yearslong pause.
Eligibility for federal student aid is based on financial need and on several other factors such as U.S. citizenship or eligible noncitizenship, enrollment in an eligible program, satisfactory academic progress in college, and more.
Once you have earned a baccalaureate degree or your first professional degree or have used up all 12 terms of your eligibility, you are no longer eligible to receive a Federal Pell Grant. Learn more about staying eligible for federal student aid while you're in school.
Are Sallie Mae loans hard to get?
The average credit score for approved Sallie Mae borrowers is around 748 for undergraduate student loans. That's pretty high – but don't panic if your credit score is much lower than that. You'll need a minimum credit score (or have a cosigner with a minimum credit score) that is somewhere in the mid-600s.
“The data released today once again make clear that the Biden-Harris Administration's relentless efforts to fix the broken student loan system are paying off in a big way, with more than 3.6 million borrowers now approved for nearly $132 billion in loan forgiveness.
The average student loan debt for bachelor's degree recipients was $29,400 for the 2021-22 school year, according to the College Board. Among all borrowers, the average balance is $38,290, according to mid-2023 data from Experian, one of the three national credit bureaus.
And through all of our various student debt relief actions, nearly four million Americans have had their student debt cancelled under my Administration. Today's announcement comes on top of the significant progress we've achieved for students and student loan borrowers in the past few years.
Private student loans—also known as personal student loans— are offered by private lenders to provide funds to pay for educational expenses. They are not part of the federal student loan program and generally do not feature the flexible repayment terms or borrower protections offered by federal student loans.
References
- https://www.usatoday.com/money/blueprint/student-loans/student-loan-forgiveness-programs/
- https://www.lendingtree.com/student/private-student-loan-forgiveness/
- https://www.investopedia.com/forgiven-student-loans-on-credit-reports-7371496
- https://studentaid.gov/help-center/answers/article/status-of-pslf-application
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/qualifying-public-services
- https://brainly.com/question/27460104
- https://lendedu.com/blog/how-to-get-rid-of-sallie-mae-loans/
- https://www.consumerfinance.gov/ask-cfpb/what-are-private-student-loans-en-2136/
- https://www.cnbc.com/select/student-loan-forgiveness-see-if-you-qualify/
- https://www.bankrate.com/loans/student-loans/never-pay-student-loans/
- https://www.forbes.com/advisor/student-loans/student-loan-forgiveness-faqs/
- https://apnews.com/article/education-philanthropy-student-loans-us-department-of-f9b57d058fc41ad8be7d1268e33c4718
- https://www.nerdwallet.com/article/loans/student-loans/refund-student-loan-payments
- https://www.equifax.com/personal/education/loans/articles/-/learn/student-loan-forgiveness-update-do-i-qualify-for-student-loan-forgiveness/
- https://www.whitehouse.gov/publicserviceloanforgiveness/
- https://www.nerdwallet.com/article/loans/student-loans/stop-student-loan-tax-garnishment
- https://www.nerdwallet.com/article/loans/student-loans/student-loan-forbearance-extended-for-millions
- https://www.nerdwallet.com/article/loans/student-loans/what-happens-next-if-student-loans-are-forgiven-2
- https://studentloanborrowerassistance.org/is-your-account-showing-zero-qualifying-payments-for-pslf-after-consolidating-dont-panic/
- https://www.nerdwallet.com/article/loans/student-loans/got-a-save-student-loan-forgiveness-email-heres-what-comes-next
- https://www.chipper.app/blog/can-i-apply-for-another-student-loan-forgiveness-program-if-i-have-already-received-forgiveness
- https://www.nerdwallet.com/article/loans/student-loans/if-scotus-blocks-student-debt-relief-1965-law-could-be-plan-b
- https://www.forbes.com/sites/adamminsky/2022/12/22/when-will-you-receive-student-loan-forgiveness-timelines-for-4-programs/
- https://www.nerdwallet.com/article/loans/student-loans/what-are-the-odds-ill-get-student-loan-forgiveness
- https://www.nerdwallet.com/article/loans/student-loans/is-sallie-mae-federal-loan
- https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/fact-sheet-president-biden-announces-new-plans-that-would-provide-relief-to-borrowers-disproportionately-burdened-by-student-loan-debt/
- https://finance.yahoo.com/personal-finance/do-i-qualify-for-student-loan-forgiveness-194501496.html
- https://studentaid.gov/help-center/answers/article/how-can-determine-many-payments-left-before-loan-forgiven
- https://taxfoundation.org/blog/student-loan-debt-cancelation-tax-treatment/
- https://studentaid.gov/understand-aid/eligibility
- https://studentaid.gov/help-center/answers/article/what-happens-if-loan-forgiveness-app-denied
- https://www.ed.gov/news/press-releases/us-department-education-announces-42-billion-approved-public-service-loan-forgiveness-more-615000-borrowers-october-2021
- https://studentaid.gov/manage-loans/forgiveness-cancellation
- https://www.nerdwallet.com/article/loans/student-loans/student-loan-forgiveness
- https://www.nerdwallet.com/article/loans/student-loans/how-to-know-if-student-loans-are-federal
- https://www.law.berkeley.edu/admissions/jd/financial-aid/loan-repayment-assistance-program/public-service-loan-forgiveness-pslf/
- https://www.conahec.org/news/case-against-student-loan-cancellation
- https://www.mohela.com/fedLoan-transfer
- https://www.cnn.com/cnn-underscored/money/average-student-loan-debt
- https://www.forbes.com/advisor/student-loans/private-student-loan-forgiveness-options/
- https://www.forbes.com/advisor/student-loans/disadvantages-of-forgiveness-program/
- https://www.isac.org/students/after-college/documents/Default_FAQs_College.pdf
- https://www.ncsl.org/state-legislatures-news/details/supreme-court-strikes-down-student-loan-forgiveness-program
- https://studentaid.gov/understand-aid/eligibility/regain
- https://upsolve.org/learn/student-loan-forgiveness-dropped-out/
- https://www.credible.com/refinance-student-loans/sallie-mae-loan-forgiveness
- https://www.consumerfinance.gov/paying-for-college/student-loan-forgiveness/
- https://www.ed.gov/news/press-releases/biden-harris-administration-announces-nearly-5-billion-additional-student-debt-relief
- https://studentaid.gov/articles/student-loan-forgiveness/
- https://nomoredebts.org/debt-help/dealing-with-creditors/debt-forgiveness-writeoff-letter
- https://time.com/personal-finance/article/how-to-apply-for-student-loan-forgiveness/
- https://www.whitehouse.gov/briefing-room/statements-releases/2024/02/21/fact-sheet-president-biden-cancels-student-debt-for-more-than-150000-student-loan-borrowers-ahead-of-schedule/
- https://www.tateesq.com/learn/student-loan-balance-says-0
- https://www.ed.gov/news/press-releases/biden-harris-administration-approves-12-billion-loan-forgiveness-over-150000-save-plan-borrowers
- https://www.savingforcollege.com/article/are-parent-loans-eligible-for-student-loan-forgiveness
- https://studentaid.gov/debt-relief-announcement
- https://www.bankrate.com/loans/student-loans/student-debt-statute-of-limitations/
- https://studentaid.gov/articles/your-loan-was-transferred-whats-next/
- https://www.cnbc.com/select/when-to-expect-biden-student-loan-forgiveness/
- https://studentaid.gov/pslf/employer-search
- https://money.com/student-loan-payments-cut-save-plan/
- https://www.tateesq.com/learn/defaulted-student-loans-not-on-credit-report
- https://lifehacker.com/why-you-should-apply-for-a-student-loan-refund-before-f-1849563860
- https://www.nerdwallet.com/article/loans/student-loans/transfer-private-student-loans-federal
- https://www.bankrate.com/personal-finance/debt/can-you-get-out-of-debt-without-paying/
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/temporary-expanded-public-service-loan-forgiveness
- https://collegeeducated.com/private-student-loans/sallie-mae-private-student-loan/
- https://www.tateesq.com/learn/pslf-how-long-process
- https://www.salliemae.com/blog/denied-for-private-student-loan/
- https://en.wikipedia.org/wiki/Public_Service_Loan_Forgiveness
- https://name.memberclicks.net/assets/docs/ce6978e5-bbaf-4be2-a14f-7c06eaffa4c8.PDF
- https://www.investopedia.com/terms/s/student-loan-forgiveness.asp
- https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/21/statement-from-president-joe-biden-on-nearly-6-billion-in-student-debt-cancellation-for-78000-public-service-workers/
- https://www.cnn.com/2023/06/30/politics/biden-student-loan-forgiveness-supreme-court/index.html
- https://studentaid.gov/sites/default/files/pslf-infographic.pdf
- https://www.forbes.com/sites/adamminsky/2023/10/19/didnt-get-a-student-loan-forgiveness-email-7-possible-reasons-why/
- https://money.com/consequences-not-paying-student-loans/
- https://financialaidtoolkit.ed.gov/tk/learn/types.jsp
- https://smartasset.com/student-loans/how-does-student-loan-forgiveness-affect-your-finances
- https://www.cbsnews.com/news/what-are-the-pros-and-cons-of-credit-card-debt-forgiveness/
- https://www.americorps.gov/blogs/2024-01-12/five-things-know-about-public-service-loan-forgiveness
- https://www.bankrate.com/loans/student-loans/bad-credit-loans/
- https://www.moneycrashers.com/student-loan-forgiveness-worth-it/
- https://studentaid.gov/sites/default/files/public-service-loan-forgiveness-employment-certification-borrower-letter.pdf
- https://www.consumerfinance.gov/ask-cfpb/do-student-loans-affect-my-credit-score-en-581/
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
- https://studentaid.gov/understand-aid/types/grants/pell