What makes you ineligible for loan forgiveness?

Asked by: Stanton Hammes  |  Last update: February 13, 2026
Score: 4.6/5 (38 votes)

You must be a direct employee of a qualifying employer for your employment to qualify. This means that employees of contracted organizations, that are not themselves a qualifying employer, won't qualify for PSLF including government contractors and for-profit organizations.

What are the eligibility requirements for student loan forgiveness?

You may be eligible for income-driven repayment (IDR) loan forgiveness if you've have been in repayment for 20 or 25 years. An IDR plan bases your monthly payment on your income and family size.

Who is excluded from student loan forgiveness?

What student loans are not eligible for forgiveness? Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government.

What disqualifies you from public service loan forgiveness?

Jobs that don't qualify for PSLF

Here's a short list: For-profit organizations, including for-profit government contractors. Labor unions. Partisan political organizations.

Is it too late to apply for student loan forgiveness in 2024?

There is no deadline to apply for pslf, you can submit pslf forms for retroactive employment at any time. The deadline you're referring to is for the idr waiver and it is for folks who want to consolidate for the higher count using the idr waiver or need to consolidate due to ineligible loan types.

Biden cuts back on student loan forgiveness eligibility

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Can I still apply for the Biden student loan forgiveness?

You can still apply for Student Loan Forgiveness in 2024. Despite the Supreme Court striking down Biden's initial plan to cancel up to $20,000 in student loans, the president has introduced other programs that have provided $167.3 billion in student loan forgiveness to over 4 million borrowers.

What are the issues with MOHELA in 2024?

In July 2024, AFT sued MOHELA for a wide range of unlawful practices, including illegally executing a “call deflection” scheme to deny service to borrowers who need help.

Why am I not eligible for loan forgiveness?

Only borrowers who have entered repayment on at least one of their loans when the debt relief is applied would be eligible for forgiveness on the loan(s) in repayment.

How do I know if my student loans will be forgiven?

If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. 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.

Why do people get denied for PSLF?

You must be a direct employee of a qualifying employer for your employment to qualify. This means that employees of contracted organizations, that are not themselves a qualifying employer, won't qualify for PSLF including government contractors and for-profit organizations.

Who actually gets student loan forgiveness?

The PSLF program supports public servants—including teachers, nurses, social workers, first responders, service members, and other public servants—by forgiving the remaining student loan balance for those who make the required 120 qualifying monthly payments.

Will the IRS take a refund for student loans in 2024?

The student loan tax offset program resumed in 2024. If you have federal student loans in default, your 2025 tax refund may be at risk.

Does loan forgiveness affect credit score?

If you receive full forgiveness, it'll close your loan accounts, which can affect your credit score slightly. You'll have one fewer account on your record and the average age of your accounts could decrease.

At what age do student loans get written off?

After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.

What is the deadline for student loan forgiveness?

Many student loan borrowers have an opportunity to receive full student loan cancellation or more credit towards cancellation. The U.S. Department of Education will conduct a one-time adjustment this summer , but you may need to take steps to qualify. The deadline to act is June 30, 2024. Here's what you need to know.

Who qualifies for student loan forgiveness now?

If you work full time for a government or nonprofit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—i.e., at least 10 years of payments. To benefit from PSLF, you need to repay your federal student loans under an IDR plan.

Will I be notified if I qualify for student loan forgiveness?

Once we've received all of the documentation needed to determine whether you qualify for loan forgiveness, you'll be notified.

Is there a form I need to fill out for student loan forgiveness?

After you make your 120th qualifying monthly payment for PSLF, you'll need to submit the PSLF form to receive loan forgiveness. You must be working for a qualifying employer at the time you submit the PSLF form.

What loans don t qualify for forgiveness?

At the federal level, some government-backed student loans also don't qualify for forgiveness, including:
  • Federal Family Education Loan (FFEL)
  • Federal Perkins Loan.

How do I know if my student loans are forgiven?

Your student loan servicer(s) will notify you directly after your forgiveness is processed. Make sure to keep your contact information up to date on StudentAid.gov and with your servicer(s). If you haven't yet qualified for forgiveness, you'll be able to see your exact payment counts in the future.

Who is not eligible for PSLF?

Important: If your employer is a for-profit organization, a labor union, or a partisan political organization, it isn't an eligible PSLF employer regardless of the kinds of public services it might provide.

Are MOHELA loans going to be forgiven?

If you work in certain public service jobs and make 120 payments on your Direct Loan(s), you may be eligible to have your loans forgiven. If you are a teacher in a low-income school or educational service agency, you may be eligible for Teacher Loan Forgiveness.

What is going on with MOHELA student loans?

In October 2023, the U.S. Department of Education disclosed that MOHELA failed to send monthly student loan bills to 2.5 million borrowers, resulting in 800,000 borrowers missing a monthly payment.

How long does it take for MOHELA to process loan forgiveness?

Loans serviced by MOHELA? If you faxed or mailed your PSLF form to MOHELA it may take up to 14 days for your mohela.com account to note that the form was received. Please allow at least 90 business days for your form to be processed.