How to Apply for Student Loan Forgiveness (2026)

Federal student loan forgiveness programs are still accepting applications. The process depends on which program fits your situation.

• PSLF is active. If you work in public service, you can apply through the PSLF Help Tool on StudentAid.gov.

• IDR forgiveness is available through IBR. The SAVE plan has been vacated, but Income-Based Repayment remains intact with its own forgiveness timeline.

• Borrower defense applications are open. The Sweet v. McMahon settlement is final, and new individual applications are still accepted at StudentAid.gov.

• Disability discharge is permanent and tax-free. Applications are processed through StudentAid.gov, and the One Big Beautiful Bill Act made the tax exclusion permanent.

Most federal forgiveness programs remain active, but the repayment plans that feed into them have changed.

The SAVE plan no longer exists. On March 10, 2026, a federal court vacated the SAVE Final Rule, and the Department of Education began notifying all 7.5 million enrolled borrowers on March 27, 2026. Servicer notices directing SAVE borrowers to choose a new repayment plan will go out starting July 1, 2026, with a 90-day window to act. Borrowers who do not choose a plan will be auto-enrolled in the Standard Repayment Plan or the new Tiered Standard Plan.

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, overhauled the IDR system. It eliminates SAVE, PAYE, and ICR by July 1, 2028 and introduces the Repayment Assistance Plan (RAP), which launches July 1, 2026. Borrowers with loans disbursed before July 1, 2026 can still access IBR. Borrowers with loans disbursed on or after that date are limited to RAP and the new Standard Repayment Plan.

IBR is the only income-driven repayment plan on solid legal footing for forgiveness purposes. PAYE and ICR remain available to currently enrolled borrowers, but both wind down by July 1, 2028, and their post-vacatur legal status is uncertain.

PSLF is unaffected by any of these changes. It operates under separate statutory authority, continues to process applications, and issued 18,160 discharges in January 2026 alone.

One tax change matters: the American Rescue Plan Act’s federal tax exclusion for student loan forgiveness expired on December 31, 2025. IDR forgiveness received after that date is taxable unless you qualify for the IRS insolvency exclusion. PSLF forgiveness remains tax-free. Death and disability discharges are permanently tax-free under OBBBA.

 

PSLF forgives the remaining balance on your Direct Loans after 120 qualifying monthly payments made while working full-time for a qualifying employer — a government agency, a 501(c)(3) nonprofit, or certain other public service organizations.

1. Confirm your loan type. Only Direct Loans qualify. If you have FFEL or Perkins Loans, you must consolidate them into a Direct Consolidation Loan first.

2. Verify your employer. Use the PSLF Help Tool on StudentAid.gov to check whether your employer qualifies. Government employers at any level (federal, state, local, tribal) qualify automatically. Nonprofits must hold 501(c)(3) status.

3. Submit the PSLF form. The PSLF form certifies your employment and, once you reach 120 payments, doubles as your forgiveness application. Generate the form through the PSLF Help Tool, have your employer sign Section 5 (or use the alternative documentation process in Section 5B if your employer refuses to sign or has closed), and submit it.

4. Enroll in an IDR plan. Payments under all IDR plans count toward PSLF. If you are not already on an income-driven plan, submit the IDR application at StudentAid.gov alongside your PSLF form. IBR is the most reliable option for new enrollments. Payments under the Standard 10-Year Repayment Plan also count but leave little or no balance to forgive.

5. Recertify annually. Submit a new PSLF form each year or whenever you change employers. Annual certification keeps your qualifying payment count accurate and prevents processing delays when you reach 120 payments.

6. Apply for forgiveness. After 120 qualifying payments, submit the PSLF form one final time. You must be employed full-time with a qualifying employer when you submit it.

PSLF forgiveness is tax-free.

You can check the status of your PSLF form by logging into your StudentAid.gov account, selecting “View All Activity” from the dashboard, and reviewing the form status (In Review, Action Required, Processed, or Denied).

Related:

• Public Service Loan Forgiveness

• PSLF Qualifying Payments

• Qualifying Public Service Jobs

• Federal Employee Forgiveness

Income-driven repayment plans forgive the remaining loan balance after 20 or 25 years of qualifying payments, depending on the plan and when your loans were disbursed.

The forgiveness is not automatic — you must be enrolled in an IDR plan and recertify your income each year to stay on track. Which plans are available and how they compare is covered in the IDR overview and IBR guide.

1. Apply at StudentAid.gov. Submit the Income-Driven Repayment Plan Request online. You will need your FSA ID. The application asks you to consent to IRS income verification, which speeds processing and eliminates manual uploads.

2. Choose a plan. For most borrowers enrolling now, IBR is the available option. If you are currently enrolled in PAYE or ICR, you can remain on those plans until their July 1, 2028, phase-out, but you cannot newly enroll in PAYE without meeting its eligibility requirements. Your servicer can confirm which plans you qualify for based on your loan type and disbursement dates.

3. Recertify annually. Each year, you must recertify your income and family size. Missing the recertification deadline can cause your payment to spike temporarily and may result in interest capitalization. Set a reminder for your annual recertification date.

4. Track your progress. The Department of Education’s IDR tracker shows your qualifying payment count. Check it periodically to confirm your payments are counting.

IDR forgiveness received after December 31, 2025, is subject to federal income tax. Borrowers who are insolvent at the time of discharge — meaning their total debts exceed their total assets — may qualify for an exclusion under IRS rules by filing Form 982.

Related: IDR Waiver and Account Adjustment

Borrower defense to repayment allows you to seek discharge of federal student loans if your school misled you or engaged in misconduct that violated certain laws. The program applies to Direct Loans only.

The legal landscape for borrower defense has stabilized. The Supreme Court denied the final challenge to the $6 billion Sweet v. McMahon settlement in February 2026. Under the settlement, post-class borrowers who attended schools on the Exhibit C list and did not receive a decision by January 28, 2026, receive automatic discharge. The Department of Education was required to notify those borrowers by March 29, 2026.

For new individual applications, the 2019 borrower defense regulations apply. OBBBA restored the 2019 rule and blocked the 2022 rule for loans originating before July 1, 2035.

1. Gather your evidence. Document how your school misled you — false claims about graduation rates, job placement statistics, program accreditation, costs, or transferability of credits. Collect enrollment agreements, promotional materials, and communications with admissions or financial aid staff.

2. File your application at StudentAid.gov. Submit the borrower defense application. It asks you to identify your school, describe the misrepresentation, and upload supporting documentation.

3. Request forbearance. Once your application is materially complete, you can request that the Department place your loans in forbearance while your claim is reviewed. This pauses payments and stops collection activity during the review period.

4. Wait for a decision. Processing timelines vary. You will receive a written decision by mail.

If your claim is approved, your loans are discharged, and you may receive a refund of payments made on the discharged loans. Discharged amounts may be subject to federal income tax depending on when the discharge occurs and whether you qualify for the insolvency exclusion.

Related: Borrower Defense to Repayment

Total and Permanent Disability (TPD) discharge cancels your federal student loans if a qualifying condition prevents you from engaging in substantial gainful activity. The discharge applies to all federal loan types, including Direct Loans, FFEL Loans, and Perkins Loans.

You qualify through one of three documentation paths: a VA disability determination, a Social Security Administration disability determination, or certification from a physician, nurse practitioner, physician assistant, or licensed psychologist. The correct path depends on how your disability has already been documented, not on the diagnosis itself.

You can apply online at StudentAid.gov or by paper form. Once the Department receives your application, it suspends collection activity while it reviews your eligibility. If approved based on SSA or physician documentation, your loans enter a three-year monitoring period. Discharges based on VA documentation do not have a monitoring period.

TPD discharge is permanently tax-free under OBBBA.

Related:

• How to Apply for a TPD Discharge

• Disability Discharge

Several additional forgiveness and discharge programs exist for borrowers in specific situations. Each has its own application process and eligibility requirements.

Teacher Loan Forgiveness provides up to $17,500 in forgiveness for teachers who work full-time for five consecutive years in low-income schools. The amount depends on the subject area and whether the teacher meets “highly qualified” standards.

Related: Teacher Loan Forgiveness

Military and veteran programs include PSLF (active duty service counts as qualifying public service employment), TPD discharge for service-connected disabilities, and branch-specific student loan repayment programs.

Related:

• Military Forgiveness

• Veteran Forgiveness

Closed school discharge cancels your federal loans if your school closed while you were enrolled or within a certain period after you withdrew. The Department of Education may process these discharges automatically in some cases. Check your eligibility at StudentAid.gov.

State-specific programs exist in many states, offering loan repayment assistance for borrowers who work in designated professions or underserved areas. Eligibility and application processes vary by state.

Related: State Forgiveness Programs

If you are not sure which program applies to you, start here:

1. Check your loan type. Log in to StudentAid.gov and review your loan details. If you have FFEL or Perkins Loans and want to pursue PSLF or IDR forgiveness, you will need to consolidate into a Direct Consolidation Loan first.

2. Identify your forgiveness path. If you work in public service, start with PSLF. If you have been in repayment for many years, check your IDR payment count. If your school misled you, consider borrower defense.

3. If you have a qualifying disability, apply for TPD discharge.
   Submit the right application. All major forgiveness applications are available at StudentAid.gov. There is no cost to apply for any federal forgiveness program. Never pay a company to submit a forgiveness application on your behalf — these applications are free.

4. Set up annual recertification. If you are on an IDR plan or pursuing PSLF, mark your recertification deadlines. Missing them can delay forgiveness or increase your payments.