President Biden's Loan Forgiveness Plan Killed By US Supreme Court
You have probably heard about President Biden's student loan forgiveness program that was announced in October 2022. The Supreme Court nixed that program at the end of June 2023.
President Biden has announced that the pause in student loan payments that began in the Covid pandemic will end, and the first payments will come due in October 2023.
For details about the 2022 student loan forgiveness program under the Biden administration, see this article.
So, with Biden's forgiveness plan eliminated, borrowers are left with the existing loan reduction programs offered by the Department of Education.
Loan Forgiveness Programs That Still Exist, Other Than the Biden Plan Rejected By the Supreme Court
The remainder of this article covers other types of student loan forgiveness programs that were in existence before the general forgiveness program that President Biden announced in October 2022.
If your student loans are canceled, you don’t have to repay them. To qualify for loan cancellation (also called "discharge" or "forgiveness"), you must meet very specific requirements that depend on the type of student loans you have and when you got them.
Photo Daniel Kulinski via Flickr Creative Commons
Federal Student Loans
You may be able to cancel your federal student loans under the following circumstances. If your loans are eligible for discharge, it usually doesn’t matter whether you’re current on your payments or in default. In some cases, you may even be entitled to a refund for loan payments you’ve already made.
If you have federal Perkins loans, scroll down to the bottom of this list for information that applies specifically to you.
Death of the Borrower
Federal student loans are canceled if the borrower dies. (For a PLUS loan, the loan is canceled if either the student or both parents have died.) A family member or the executor of the estate must send a copy of the death certificate to the loan servicer.
Permanent Total Disability
If you become totally and permanently disabled, you can cancel your federal student loans. To do this, you must prove your disability to the U.S. Department of Education. For details, see Total and Permanent Disability Discharge on the U.S. Department of Education website. Also, check out the Disability Discharge Self-Help Packet offered by Student Loan Borrower Assistance (SLBA).
When you’re ready to apply, you can begin the disability discharge application online.
2022 update:
Student loan borrowers who have certain types of “total and permanent” disabilities are eligible for discharge of their student loans, but historically many eligible borrowers have missed out on this relief due to paperwork barriers. In recent years, the government began providing automatic discharges to some disabled borrowers based on a data-matching program with the Department of Veterans Affairs, and now the Department has begun also providing automatic discharge to over 323,000 student loan borrowers based on data matching with the Social Security Administration. Borrowers will have $5.8 billion in loans automatically discharged unless they opt out after receiving notice of their eligibility for discharge. See NCLC’s Student Loan Law §§ 10.8.5.3, 10.8.5.4.
Borrowers automatically qualifying for the disability discharge are those eligible for Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI) benefits and whose next scheduled disability review is no earlier than five and no later than seven years. The Department will return payments made after the effective date of the determination by the VA or SSA to borrowers who receive the automatic disability discharge. See 34 C.F.R. §§ 674.61 (Perkins Loans), 682.402 (FFEL), 685.213 (Direct Loans), as promulgated at 86 Fed. Reg. 46,972 (Aug. 23, 2021).
In addition, the Department has ceased asking borrowers for earnings information in the three years after discharge is approved. This “monitoring” process was found to be a major barrier to relief, as many disabled borrowers had their loans reinstated not because their income was too high, but because they missed paperwork requirements. The Department is also moving toward fully eliminating the three-year monitoring period through regulatory amendments. For more on federal student loan disability discharges, see NCLC’s Student Loan Law § 10.8.
Public Service Employment
You may be able to cancel your Federal Direct Loans after you make 120 on-time, monthly payments -- that’s ten years' worth -- while working at a public service job. To find out what types of employment qualify and what kinds of loans you can cancel, see Public Service Loan Forgiveness on the U.S. Department of Education website.
Military Service
Military service is covered by the public service loan forgiveness program discussed just above. Except for Perkins loans (see below), there are no additional federal student loan cancellation programs for members of the Armed Forces.
Teaching Low-Income Students
If you have been teaching full-time in a low-income elementary school, secondary school, or educational service agency for at least five years, you may be able to cancel part or all of your loans. For details, see Teacher Loan Forgiveness on the U.S. Department of Education website.
Closed School
You may be able to cancel your federal student loans if your school closes either while you are enrolled or within 90 days after you withdraw. You qualify only if you were unable to complete your educational program because of the closure. For complete details, see Closed School Discharge on the SLBA website. You can find a link to the closed school discharge application below.
If you have questions about your closed school, send an email or make a phone call to your closed school representative on this list. If you don't qualify for a federal school-related discharge, you may be able to get relief from a state tuition recovery fund (see below).
Automatic Loan Cancellation for All Students at Corinthian, ITT, Westwood, and Marinello
The Department is automatically discharging approximately $10 billion in federal student loans for students who attended four large, multi-campus, for-profit schools, based on widespread predatory misconduct by those schools. No borrower application is required.
Eligible borrowers from the four schools are:
- Corinthian Colleges: All 560,000 borrowers with outstanding loans who attended any of the Corinthian campuses from 1995 through its closure in April 2015.
- ITT Technical Institutes: All 208,000 borrowers with outstanding loans who attended any ITT campus from January 1, 2005, through its closure in September 2016.
- Westwood College: All 79,000 borrowers with outstanding loans who attended any of the school’s campuses from between January 1, 2002, and when the school closed in 2016.
- Marinello Schools of Beauty: Approximately 28,000 borrowers with outstanding loans who attended any of the school’s campuses between January 2009 and when Marinello closed in February 2016.
The discharge applies to all outstanding federal student loans, including Direct Loans, commercially held FFEL Loans, and Parent PLUS Loans. Borrowers who already fully paid off their loans before the group relief announcement was made will not be included in this relief. The Department announced that it will also provide refunds for payments already made on outstanding loans, delete adverse credit history associated with the loans, and restore eligibility for further federal student aid.
False Certification of Student Eligibility or Unauthorized Payment
You may be able to cancel your student loans for one of the following reasons:
- Your school falsely stated that you were eligible for loans based on your ability to benefit from its training.
- Your school applied for or obtained loans in your name without your authorization.
- Your loan application was the result of identity theft.
- Your school certified your eligibility for loans, but you were later disqualified from employment in the occupation for which you were being trained.
For complete details, see False Certification Discharge on the SLBA website. You can find a link to these discharge applications below.
Unpaid Refund
You may be able to cancel your federal loan if you left school early but the school didn’t refund money it owed on the loan. You can cancel only the amount of the unpaid refund. For details, see Unpaid Refund Discharge on the SLBA website.
Perkins Loan Cancelation Programs
The rules for canceling federal Perkins loans are slightly different than those for other types of federal loans; they include some of the options above and many additional types of public service work.
To see a complete list of cancellation options for Perkins loans, see the Federal Perkins Loan Cancellation and Discharge Summary Chart on the U.S. Department of Education website.
State Tuition Recovery Funds
Many states maintain tuition recovery funds to assist students who enrolled at fraudulent schools. A state program may help you even if you don't qualify for a federal school-related cancellation program.
If you were the victim of a fraudulent school and you haven't been reimbursed for the costs of enrollment, contact the at to find out whether you are eligible for state relief.
Private Cancellation Programs
Some private employers offer student loan repayment programs as incentives for their employees. Ask your employer for more information.
Private Student Loans
Private student loan companies aren't legally required to participate in loan cancellation programs. Unless the lender promised you could cancel your loans under certain circumstances, it’s up to them to decide whether to give you a cancellation option. Some large lenders, such as Sallie Mae and Wells Fargo, do have limited loan discharge programs -- for example, if the borrower dies or becomes totally and permanently disabled.
Review your loan contract to see whether it includes provisions for cancellation, and talk to your lender if you have questions. If you can’t get clear information from your lender, you can file a student loan complaint with the Consumer Financial Protection Bureau (CFPB).
Be aware that if a private lender cancels your loan, you will have to report it for tax purposes. (The idea is that if a lender cancels a loan, the money you now don't have to pay is just like income.) For more information, consult a tax professional.
State and University Student Loans
If you received a loan from a state student loan program or directly from your school, contact the lender to ask about loan forgiveness or cancellation options. For state programs, if you can't easily locate your loan servicer, you may want to begin by contacting the for information.
Federal Loan Cancellation Applications
The links below will take you directly to a variety of applications for canceling your student loans. Before completing a cancellation application, contact your loan servicer to be sure it is the most recent version. Your servicer will handle your application when it is complete.
Below is the chart of discharges according to the Department:
Type of Forgiveness, Cancellation, or Discharge | Direct Loans | Federal Family Education Loan (FFEL) Program Loans | Perkins Loans |
Public Service Loan Forgiveness | X | X* | X* |
Teacher Loan Forgiveness | X | X | |
Perkins Loan Cancellation (includes Teacher Cancellation) | X | ||
Total and Permanent Disability Discharge | X | X | X |
Death Discharge | X | X | X |
Bankruptcy Discharge (in rare cases) | X | X | X |
Closed School Discharge | X | X | X |
False Certification of Student Eligibility or Unauthorized Signature/Unauthorized Payment Discharge | X | X | |
Unpaid Refund Discharge | X | X |
Discharging Student Loans in Bankruptcy
To get rid of student loans in a bankruptcy proceeding, you'll need to convince the bankruptcy court that paying your loans would cause you "undue hardship." This is a difficult standard to meet. To learn more, see Can I Discharge My Student Loans in Bankruptcy?
Learn More
For more information about programs that can help you wipe out your student loan debt, see Student Loan Debt Forgiveness Programs.
For general advice on handling your student loans, see Top Tips for Dealing With Student Loan Debt.
If you're struggling to make payments, see What If I Can't Pay My Student Loans?
If you need additional support, see How to Get Help With Student Loan Problems.
Loan Forgiveness Programs In Individual States
Examples of State Loan Forgiveness or Assistance Programs.
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New York: New York established the Get On Your Feet Loan Forgiveness Program. It aims to assist recent college graduates who are residents of New York State and have an income below a certain threshold. The program provides up to two years of federal student loan debt relief. Eligible borrowers can receive a maximum of 24 monthly payments that cover the full amount of their federal income-driven repayment plan payments.
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Rhode Island: Rhode Island introduced the Rhode Island Student Loan Authority (RISLA) Refinance Loan Program. It enables borrowers to refinance their existing student loans through RISLA. The program offers competitive interest rates, flexible repayment terms, and the option to release a cosigner from the loan after meeting certain requirements. Refinancing can potentially reduce monthly payments and the total interest paid over the life of the loan.
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Maryland: Maryland implemented the Janet L. Hoffman Loan Assistance Repayment Program (LARP). LARP aims to support Maryland residents working in specific fields such as law enforcement, nursing, social work, and teaching. The program provides financial assistance to individuals who have incurred student loan debt while pursuing a career in these designated fields. Eligible applicants can receive annual awards to help repay their student loans.
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New Jersey: New Jersey offers the New Jersey College Loans to Assist State Students (NJCLASS) Loan Redemption Program. Under this program, eligible borrowers who work in New Jersey in a STEM (Science, Technology, Engineering, and Mathematics) field can receive up to four years of loan redemption. The redemption amount depends on the length of employment and can cover up to 100% of the NJCLASS loan balance.
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Vermont: Vermont has the Vermont Educational Loan Repayment Program for Health Care Professionals (VELRP). It provides loan repayment assistance to healthcare professionals who work in designated shortage areas in Vermont. Eligible practitioners, including physicians, dentists, nurses, and mental health professionals, can receive funds to repay a portion of their qualifying educational loans.
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Ohio: Ohio offers the Ohio Dentist Loan Repayment Program. This program aims to address the shortage of dentists in underserved areas of the state. Eligible dentists who commit to practicing in designated underserved areas for a specified period can receive loan repayment assistance. The program offers tiered repayment amounts based on the length of service.
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Minnesota: Minnesota has the Rural Physician Loan Forgiveness Program. It targets medical doctors who agree to practice in rural areas of the state. Eligible physicians can receive up to $25,000 per year in loan forgiveness, with a maximum of $100,000 over a four-year period.
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Iowa: Iowa offers the Rural Iowa Primary Care Loan Repayment Program. It aims to attract healthcare professionals to practice in designated shortage areas in rural Iowa. Eligible healthcare providers, including physicians, dentists, and physician assistants, can receive loan repayment assistance in exchange for a commitment to practice in underserved communities.
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Colorado: Colorado has the Colorado Health Service Corps (CHSC) program. It provides loan repayment assistance to healthcare professionals who work in underserved areas of the state. Eligible practitioners, including physicians, dentists, mental health providers, and others, can receive funds to repay a portion of their student loans.
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Kentucky: Kentucky offers the Kentucky Physician Loan Repayment Program. It targets physicians who agree to practice in underserved areas of Kentucky for a specified period. Eligible physicians can receive loan repayment assistance, and the amount of repayment depends on the length of service commitment.
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Oregon: Oregon has the Health Care Provider Loan Repayment Program. It aims to increase access to healthcare in underserved areas of the state. Eligible healthcare providers, including physicians, dentists, and mental health professionals, can receive loan repayment assistance in exchange for a commitment to work in designated shortage areas.
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Kansas: Kansas offers the Rural Opportunity Zones (ROZ) Student Loan Repayment Program. It aims to attract individuals to live and work in designated rural counties of Kansas. Eligible participants who have graduated with an associate's, bachelor's, or post-graduate degree can receive up to $15,000 in student loan repayment assistance over a five-year period.
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Louisiana: Louisiana has the Teachers' Education Loan Forgiveness Program. It provides loan forgiveness to Louisiana residents who have obtained a teaching degree and are employed as teachers in the state's public schools. Eligible teachers can receive up to $1,000 in loan forgiveness for each full year of teaching service, up to a maximum of $5,000.
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Pennsylvania: Pennsylvania has the Primary Care Loan Repayment Program (LRP). The program offers loan repayment assistance to primary care practitioners, including physicians, dentists, and physician assistants, who commit to serving underserved populations in Pennsylvania. Participants can receive up to $100,000 in loan repayment assistance over a two-year period.
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North Dakota: North Dakota established the Rural Veterinarian Loan Repayment Program. It aims to encourage veterinarians to practice in underserved rural areas of the state. Eligible veterinarians who commit to working in designated shortage areas can receive up to $80,000 in loan repayment assistance over a four-year period.
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California: California offers the California State Loan Repayment Program (SLRP). This program aims to increase access to primary care and dental care in underserved communities by providing loan repayment assistance to healthcare professionals. Eligible individuals who commit to working in designated shortage areas can receive funds to repay a portion of their qualifying educational loans.
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Maine: Maine has the Educators for Maine Program, which is designed to encourage teachers to work in subject areas and geographic locations that are experiencing teacher shortages. The program provides loan forgiveness to eligible educators who teach in critical shortage areas or demonstrate expertise in specific subject areas. The forgiveness amount depends on the length of service and other factors.
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Texas: Texas has the Loan Repayment Program for Mental Health Professionals, administered by the Texas Higher Education Coordinating Board. This program aims to increase access to mental health services in underserved areas of the state. Mental health professionals, including psychiatrists, psychologists, and licensed professional counselors, can receive loan repayment assistance by working in designated mental health shortage areas.
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Alaska: Alaska has the SHARP program (State Health Assistance Loan Repayment Program), which is focused on recruiting and retaining healthcare professionals in underserved areas of the state. The program provides loan repayment assistance to health practitioners who commit to working in designated shortage areas or with underserved populations.