PSLF, IDR Loan Forgiveness Changes Coming
10-Year PSLF Eligibility
Individuals seeking Public Service Loan Forgiveness (PSLF) may soon become eligible after just 10 years of qualifying payments, instead of the current 120 payments (approximately 10 years).
Reduced IDR Loan Forgiveness Timeframe
Starting in February 2024, borrowers on the Student Aid and Verification Enforcement (SAVE) Plan will have their Income-Driven Repayment (IDR) loan forgiveness time reduced to as low as 10 years (currently 20 or 25 years), depending on the amount borrowed.
SAVE Plan Forgiveness Eligibility
All borrowers on the SAVE Plan will receive forgiveness after 20 or 25 years, depending on whether they have loans for graduate school. The benefit is based on the original principal loan balance.
SAVE Plan Forgiveness Amounts
Approximately $36 billion will be forgiven for nearly 207,000 borrowers enrolled in the SAVE plan. Beginning in February 2024, low-income borrowers who originally borrowed $12,000 or less will qualify for forgiveness after as few as 10 years.
SAVE Plan Enhancements
Additional elements of the SAVE plan will go into effect in the summer.
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