Income-driven repayment (IDR)

Base monthly student loan payments on income. Borrowers can base their monthly student loan payments on their income. Depending on loan eligibility, the loan payment could be anywhere from 10-20 percent of discretionary income. Low-income borrowers could have a monthly income-driven payment as low as $0.

Get more information

• StudentAid.gov: Income-driven repayment plans
• StudentAid.gov: FAQs about IDR plans
• StudentLoans.gov: Repayment Estimator helps you determine which plan is best for you
• IBRInfo/TICAS: More information on IDR plans

Public service loan forgiveness (PSLF)

Public service and debt forgiveness. Borrowers who have full-time public service jobs could be eligible for debt forgiveness if they:

• Have already made 120 on-time payments;
• Work at least 30 hours per week for local, state, federal, or tribal government or non-profit organizations;
• Have Direct loans;
• Are on an eligible income-driven repayment plan; and
• Make on-time payments on their student loans.

Get more information

• StudentAid.ed.gov: Learn more about qualifying for Public Service Loan Forgiveness
• StudentAid.ed.gov: Use this tool to determine if you are eligible for PSLF
• ConsumerFinance.gov: CFPB guide to PSLF
• StudentAid.ed.gov: Learn more about Perkins Loan cancellation
• StudentLoans.gov: Applications for various types of forgiveness and cancellation
• StudentAid.ed.gov: Learn about other types of loan cancellation and forgiveness

Payment delinquency and default 

Borrowers with delinquent payments can get back on track. Many borrowers fall behind on their student loan payments at some point. Borrowers who are currently behind on their loans, but have not yet defaulted, may be able to lower their monthly payments.

Get more information

• StudentAid.ed.gov: Understanding delinquency and default
• StudentAdi.ed.gov: Avoid default

Borrowers can get out of default. Borrowers who have already defaulted on their loans still have options. They can get out of default and avoid having their wages garnished or tax refunds withheld. Visit these links below for more information.

Get more information

• StudentAid.ed.gov: Get out of default
• StudentAid.ed.gov: Make sure to contact the right collection company

Deferment and forbearance 

Short break from making loan payments. Deferment and forbearance are good options for borrowers who need a break from making student loan payments. These options are best if used for a short period of time. Why? Interest continues to grow, which increases the amount borrowers must pay back.

Get more information

• StudentAid.ed.gov: Find out how to qualify for either

Total and permanent disability discharge (TPD)

Discharge student loans due to disability. Loan discharge may be an option for borrowers who are disabled and unable to engage in substantial gainful activity due to your disability. Substantial gainful activity is a level of work performed for pay or profit that involves doing significant physical or mental activities, or a combination of both. All TPD applications are handled by Nelnet, a federal student loan servicer.

Get more information

• StudentAid.ed.gov: TPD eligibility
• Nelnet: TPD 101
• Nelnet: Application process
• Social Security Administration: Substantial gainful activity guidelines
• Department of Veterans Affairs: Individual Unemployability for veterans guidelines
• WA Department of Fish and Wildlife: How to retrieve your VA disability rating letter

Closed school discharge 

Discharge student loans due to school closure. Sometimes schools close before students can finish their credential. Students in this situation, who have also taken out loans to pay for their education at the closing school, may be able to get a closed school discharge. Borrowers can qualify if they were:

• Unable to complete their education because their school closed.
• Attending classes when their school closed.
• On an approved leave of absence when their school closed, or if the school closed within 120 days after they withdrew.

The U.S. Department of Education (ED) is automatically discharging loan debt for eligible borrowers. Eligible borrowers will receive an email from ED. Borrowers who don’t receive an email from ED can still apply for closed school discharge or borrower defense to repayment. Borrower defense is an application for loan cancellation for students whose school misled them or engaged in other misconduct in violation of certain state laws.  

Get more information

• StudentAid.ed.gov: FAQs for ITT students
• StudentAid.ed.gov: For ITT students in WA
• WA State Board of Community and Technical Colleges: Schools that can help ITT students
• Harvard Law School: Project on Predatory Student Debt
• StudentAid.ed.gov: Borrower Defense to Repayment

Consolidation

Combine many loans into one loan. There are trade-offs to consolidating federal student loans. This might make monthly payments simpler or more affordable. However, borrowers can also lose some benefits and consolidation may extend repayment time.

It’s easy to consolidate federal student loans online, and there is no fee or cost for borrowers. Borrowers should research their options before making a decision.

Get more information

• StudentAid.ed.gov: Learn about consolidation
• StudentLoans.gov: Direct Consolidation loan application