Are you eligible for student loan forgiveness if you have private and federal loans?
Summary
People with both federal and private student loans need to know that federal loan forgiveness programs usually only apply to federal loans. Private loans are not covered by federal forgiveness rules and must be managed separately, sometimes with fewer protections.Key Facts
- Major changes to federal student loan repayment options started on July 1.
- Federal and private student loans have different repayment rules and protections.
- Federal loan forgiveness programs apply only to federal loans, not private loans.
- Common federal forgiveness programs include Public Service Loan Forgiveness, income-driven repayment forgiveness, Teacher Loan Forgiveness, and loan discharges for special situations.
- Private student loans usually do not qualify for federal forgiveness but may have some relief options set by individual lenders.
- Refinancing federal loans into private loans may cause loss of eligibility for federal forgiveness programs.
- Borrowers with both loan types should carefully compare their options to avoid losing federal protections.
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