Is Student Loan Debt Forgiveness Coming?
- Borrowers can still use student loan forgiveness programs.
- Some student loan forgiveness options could change.
- Some forgiveness options are always likely to exist.
If you’ve got student loans, you probably already know the landscape for student loan forgiveness changes every few years. With student debt rising every year, the national conversation has grown ever louder. Under President Joseph Biden, some $188 billion of debt was wiped out for 5.3 million people.
The idea of eliminating at least some debt for most borrowers has led many to wonder if student loan debt forgiveness is coming. With President Donald Trump in office, student loan borrowers still have options for forgiveness—and this guide will provide answers.
How Likely Is Federal Student Loan Debt Forgiveness?
Loan forgiveness programs still exist for federal student loans. Any student loan forgiveness on the federal level would apply only to federal student loans. If you have private student loans, you shouldn’t expect those to be forgiven.
Private student loans are issued by private lenders, such as banks, credit unions, and online lenders. Since the government doesn’t hold these loans, they can’t be forgiven by the government. Individual lenders hold private student loans, and they expect to be repaid.
Some Loan Forgiveness Options Already Exist
Borrowers still have options to have their student loan debt eliminated. These include student loan forgiveness:
Through income-driven repayment plans (IDR)
Because you’re doing public service work
A number of income-driven payment options cap payments as a percentage of your monthly discretionary income. You can contact your loan servicer and switch to an income-driven plan if you meet eligibility requirements.
Once you’ve made 240-300 qualifying payments on an income-driven plan, the remaining balance of your debt will be eliminated.
But if you work in an eligible public service job, you’re currently eligible for forgiveness after 120 qualifying payments.
An IDR plan means you could pay a percentage of your income and have most debt eliminated after 10 years of payments if you work for the government or an eligible nonprofit.
Current options under discussion are focused on narrowing the payoff options. However, both income-driven payment plans and public service loan forgiveness are likely to always exist in some form, because of the importance of encouraging public service work.
Both programs also give borrowers options to avoid default, another point in their favor.
Borrowers Can Find Ways to Manage Student Loans
If you’re interested in loan forgiveness, you can explore current income-driven payment options and public service loan forgiveness options to find out if you could have some of your debt eliminated that way.
Even on a limited budget, you still have ways to manage student loan repayment. For example, you could:
Look for an employer that offers student loan repayment assistance. A growing number of companies offer debt repayment as an employment benefit. Extra payments toward your loan could get your debt paid off much more quickly.
Build a budget around loan repayment. You could prioritize student loan payoff as an essential part of your budget and can fit in other expenses around it. You might consider a side gig for extra cash to put toward repayment.
Enter a debt relief program. If you’re experiencing financial hardship and can’t afford to fully repay your debts, you might be eligible to settle them for less than the full amount you owe. Even if your student loans can’t be settled, getting help with other debt you have—such as credit card debt or medical debt—could free up more money to put toward student loan debt payoff.
Explore bankruptcy. Student loan debt isn’t typically discharged in bankruptcy unless you can demonstrate that repayment would mean long-lasting undue hardship. This requires a separate legal proceeding, known as an adversary proceeding, within the bankruptcy case.
The right choice for student loan debt relief will depend on your ability to pay your debt, the amount of your debt, and your future financial goals. If you’re overwhelmed by student debt, Freedom Debt Relief could help you explore options for repaying what you owe and getting your finances back on track.
A look into the world of debt relief seekers
We looked at a sample of data from Freedom Debt Relief of people seeking the best debt relief company for them during June 2025. This data highlights the wide range of individuals turning to debt relief.
Debt relief seekers: A quick look at credit cards and FICO scores
Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In June 2025, the average FICO score for people seeking debt relief programs was 594.
Here's a snapshot by age group among debt relief seekers:
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 572 | 82% |
| 26-35 | 584 | 79% |
| 35-50 | 589 | 77% |
| 51-65 | 595 | 75% |
| Over 65 | 609 | 68% |
| All | 594 | 75% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to June 2025 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $16,425.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| Ohio | $15,683 | 7 | $24,102 | 84% |
| District of Columbia | $17,396 | 9 | $28,791 | 82% |
| Alaska | $20,496 | 9 | $27,261 | 80% |
| Oklahoma | $15,035 | 8 | $25,731 | 78% |
| Indiana | $14,039 | 8 | $26,156 | 78% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Regain Financial Freedom
Seeking debt relief can be the first step toward financial freedom. Are you struggling with debt? Explore options for debt relief to regain control of your finances. It doesn't matter how old you are or what your FICO score or credit utilization is. Take the first step towards a brighter financial future today.
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Author Information
Written by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
Reviewed by
Christy Bieber
Christy Bieber has been writing about personal finance and law for 16 years. She has a JD from UCLA School of Law with a focus on business law, and a BA in English, Media & Communications from the University of Rochester, as well as a Certificate of Business Administration.
Are private student loans eligible for income-driven repayment plans?
No, income-driven repayment is a program for federal student loans. However, you may be able to negotiate something similar for a private student loan. If your income is too limited to make your scheduled payments, you may be able to work out a more affordable repayment plan. Expect to show the lender proof of your income and other debts when you ask for hardship help.
How likely is student loan debt forgiveness?
Broad student loan debt forgiveness for all borrowers is not likely any time soon. The Trump Administration is opposed to widespread forgiveness and will be in power until 2028.
Even if control of the government shifts, President Biden was not able to get forgiveness through Congress, and the courts did not allow widespread elimination of student loan debt that he was proposing by executive order. Unless a minimum of 51 lawmakers, or in some cases 60 lawmakers, support loan forgiveness, it is unlikely to occur.
If forgiveness did happen, it would apply only to federal student loans and not private student loans.
What if I become disabled?
If you've become permanently disabled, you might not have to repay your federal student loans. This is called a Total and Permanent Disability (TPD) discharge. Here's how it works:
You need documentation from your healthcare provider that proves your disability.
You can apply online at StudentAid.gov and submit the required documents.
If you qualify, your loans will be discharged (forgiven), and you won't have to pay them back.
The important thing to remember is that you're not alone. Everyone goes through financial ups and downs. Others have survived situations like yours, and you will, too. Help and guidance are available. It's up to you to start reaching out to ask questions.
What student loan debts would be a part of student loan forgiveness?
If student loan forgiveness happens in the future, only federal student loans will be forgiven. The federal government isn't going to eliminate private student loan debt.
When can I expect my student loans to be forgiven?
Student loans may be forgiven after making a certain number of payments while performing public service work or while on an income-driven plan (IDR). Typically, you will need to work and make payments for a long time—a minimum of 10 years and sometimes as long as 20 to 25 years, in order to qualify for forgiveness under specific programs.