Millions Qualify for Student Loan Forgiveness — And Don’t Even Know It

ACTION PLAN —

Your Step-by-Step Action Plan for 2026

Given everything that’s changing, here’s exactly what you should do — organized by your situation.

If You Work in Public Service (Government, Nonprofit, Healthcare, Education, Military):

1. Submit your Employment Certification Form (ECF) at studentaid.gov/pslf immediately — even if you haven’t finished 120 payments yet
2. Verify your payment count and make sure all qualifying payments have been credited
3. If you have FFEL or Perkins loans, consolidate them into Direct Loans before July 1, 2026 to maintain PSLF eligibility under current rules
4. Make sure you’re on an IDR plan — payments made under the Standard 10-year plan also count for PSLF, but IDR plans keep your payments lower so you maximize the amount forgiven
5. Document everything — save copies of your ECFs, payment records, and employment verification

If You’re on the SAVE Plan:

1. Do not panic, but do act. You will eventually need to choose a new repayment plan.
2. Use the Loan Simulator at studentaid.gov to compare your options under IBR, PAYE, and ICR
3. If you also work for a qualifying employer, consider pursuing PSLF — which may forgive your loans faster than any IDR plan
4. Do NOT consolidate unless absolutely necessary — consolidating after July 1, 2026 puts you under the new, less generous RAP rules

If You Have Older FFEL or Perkins Loans:

1. Consider consolidating into a Direct Consolidation Loan before July 1, 2026 — this makes your loans eligible for PSLF and current IDR plans
2. Be aware that consolidation resets your IDR payment count under current rules (following a February 2025 court order). However, if you’ve never been on an IDR plan, you have nothing to lose
3. After July 1, 2026, consolidating locks you into the new RAP plan with 30-year forgiveness — a much less favorable timeline

If You’re Nowhere Close to Forgiveness and Just Want Lower Payments:

1. Apply for an IDR plan immediately at studentaid.gov/idr
2. Under IBR, your payments are capped at 10-15% of discretionary income, which can be as low as $0 if your income is below 150% of the federal poverty line
3. Even if forgiveness is 20-25 years away, the lower monthly payments free up cash flow now — and the forgiveness at the end, while taxable under IDR (unlike PSLF), can still save you tens of thousands of dollars

If You Think Your School Defrauded You:

1. File a Borrower Defense to Repayment application at studentaid.gov
2. Be aware that processing times have slowed significantly — apply sooner rather than later
3. Include as much documentation as possible about the school’s misleading claims

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