Before exploring Connecticut-specific programs, let’s discuss the federal student loan forgiveness programs the Department of Education offers to all Americans, including Connecticut residents.
These programs provide relief for federal student loans based on factors such as your profession or income.
1. The Public Service Loan Forgiveness Program
The PSLF is designed for individuals working in qualifying public service jobs with Direct Loans.
To be eligible, borrowers must make 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer, such as a government agency, public school, or nonprofit organization.
2. Income-Driven Repayment Plan Forgiveness Waiver
Starting in spring 2023, relief will be automatic for most borrowers who have been paying their federal student loans for 20 years or longer, letting them see the rest of their debt discharged.
These changes result from a new IDR account adjustment announced by the Biden administration in April 2022.
For one time only, nearly every month spent in student loan repayment or a long-term forbearance since leaving school will count toward forgiveness.
All federal student loans are eligible for this one-time account adjustment — including Parent PLUS Loans, Federal Family Education Loans, and Perkins Loans. But some borrowers will need to consolidate to qualify.
The U.S. Department of Education and the White House estimate that once implemented, the IDR Waiver will immediately eliminate federal student loan debt for over 40 thousand borrowers and bring millions more at least three years closer to income-based repayment forgiveness.
3. President Joe Biden’s Broad Debt Cancellation Plan
This student debt relief program promises to wipe out up to $20,000 of debt for Pell Grant recipients who meet income criteria and up to $10,000 for other qualifying borrowers.
Applications are currently on hold as the Supreme Court assesses the program’s legality.
Meanwhile, the Biden administration has prolonged the pandemic-related payment pause and interest rate freeze, lasting 60 days after the Court decides on President Biden’s student loan cancellation plan or until June 30, whichever occurs first.