5 ways to get student debt relief if you don’t qualify for loan forgiveness

By Corey Buhay | Published on October 21, 2025

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Federal student loan forgiveness update

Under the Biden Administration, federal student loan borrowers received a barrage of messages about loan relief and forgiveness—including promises of mass loan cancellation, new income-driven repayment plans, and other loan forgiveness programs. But now that President Donald Trump has entered the White House, borrowers are beginning to see some of those initiatives rolled back.

In February of 2025, the Trump Administration suspended applications for income-driven repayment (IDR) plans. That same month, the new Saving on a Valuable Education (SAVE) plan was put on hold in the face of Republican-led court proceedings challenging the U.S. Department of Education’s authority to create such a repayment plan without a green light from Congress. Then in March, Trump signed an executive order limiting the types of employment eligible for the Public Service Loan Forgiveness Program (PSLF). If you work for a nonprofit or government organization that specializes in immigration services, for example, you might no longer qualify for the PSLF program.

Income-contingent repayment (ICR) and Pay As You Earn (PAYE) plans are also under threat. Previously, making a certain number of qualifying payments under these plans could help you earn forgiveness for the remainder of your student loan debt. Now, the Trump Administration is working to remove that provision. That would leave many student borrowers with only one pathway toward loan forgiveness: income-based repayment, or IBR.

The trouble is that IBR plans typically require the highest monthly payment amounts of any plan in the IDR program. Plus, many borrowers don’t qualify for IBR because their income is too high or because they have private student loans (income-driven repayment is only available for federal loans). So what do you do if you no longer qualify for federal loan forgiveness programs—or never did in the first place? Here are a few alternatives to get student loan relief fast.

For more information on the recent decision and the upcoming payments, visit studentaid.gov.

How to set yourself up for success

Before you start weighing your options, first double-check your current loans and understand how the new Trump Administration policies affect you. If you’re already enrolled in an IBR plan and you’re happy with your payments, you might be better off staying where you are. And If you were enrolled in the SAVE Plan and had your loans placed in an administrative forbearance, it might be best to stick it out since interest won’t accrue on your principal balance during that time. Here’s how to take stock of your current loans.

1. Check your loan details

Check how much you owe and what your monthly payments are. Also, make sure you have an online account with your current loan servicer. If you’re not sure who your servicer is, log into studentaid.gov and scroll down to the “My Loan Servicers” section. Figure out what payment plan you’re on. Are you on the standard plan or an IDR plan? If you’re on an IDR plan, is it the SAVE Plan? If so, your loan is in an interest-free forbearance period.

2. Find out when your payments restart (if applicable)

If you’re enrolled in the SAVE Plan, your loans are currently in an administrative forbearance period. Right now, SAVE Plan enrollees aren’t expected to have to resume payments until late 2025. You should receive a billing statement before your first payment is due. Make sure your loan servicer has your updated contact information and, if you haven’t already, sign up for updates from the U.S. Department of Education. You can also contact your servicer now to get that information ahead of time.

3. Make a budget

If your payments still feel unaffordable, take a look at your current expenditures. Are you overspending in any one area? Could you take on a roommate, trim some non-essential spending, or start a side gig to bring in some extra income? Sometimes realigning your lifestyle to match your values can be enough to start saving money and get back on track with debt repayment.

4. Explore your options

Once you’ve taken an honest look at your debts and expenditures, you’re in a good position to figure out your next move. If your payments still feel untenable, consider a few of these debt relief options.

Options for student debt relief if you don’t qualify for student loan forgiveness

Here are a few other ways to get fast relief from the burden of student debt—even if you don’t qualify for student loan forgiveness.

• Apply for a federal income-driven repayment (IDR) plan: If you’re not already on an IDR plan, consider applying for one. These plans calculate your monthly payments based on your income and family size and cap your monthly payment at a certain percentage of your take-home pay.

• Apply for federal student loan consolidation: Federal student loan consolidation gives you the opportunity to exchange your current loans for a new Direct Loan. In the process, you can choose a new, extended loan term. Extending your loan term will increase the amount of interest you pay over time, but it could dramatically reduce your monthly payment—resulting in immediate relief. You can apply for student loan consolidation through the Federal Student Aid website. Just keep in mind that federal consolidation is only available for federal student loans. You cannot consolidate private loans this way.

• Look into repayment assistance programs: Many states, local government programs, and nonprofit organizations offer student loan repayment assistance. Some of these programs will repay a portion of your debt if you live in an eligible location or work in a qualifying field, like teaching or healthcare. Also ask your employer if they offer student loan assistance. Some companies will make matching contributions to help you pay off your student loans.

• Apply for hardship provisions: If you’ve faced a recent financial setback and need a temporary payment pause, you can request a deferment or forbearance from your loan servicer. Federal servicers are required to offer this kind of assistance if the borrower can provide proof of extenuating circumstances. Some private lenders also offer hardship programs.

• Refinance your student loans: Like student loan consolidation, student loan refinancing gives you the chance to swap out your existing loans for a new loan with new terms. But unlike consolidation, refinancing is available for private loans as well as federal loans. Refinancing can also help you score a lower interest rate if you meet your lender’s eligibility requirements. Do that, and you could both lower your monthly payment and save money on interest in the long run.

FAQ

Where can I find more information on my repayment options?

You can use the loan simulator on studentaid.gov to figure out which repayment program works best for you. This tool allows you to compare plans and look at the total cost of the loan under each one.

Is there a new income-driven repayment plan?

Before he left office, President Joe Biden launched a new income-driven plan—dubbed the SAVE Plan—to make loan repayment more affordable for borrowers. The new regulations aimed to cut monthly payments for undergraduate loans in half (from 10% of your monthly income after taxes to 5%), create protections for borrowers’ basic needs, and keep unpaid interest from accumulating. However, this plan is currently under review and is on hold in the meantime. Applications for this plan are not available at this time.

Should I consolidate my federal student loans?

If you want to make just one monthly payment, you can consolidate your federal student loans. This will combine them into a single loan with a fixed interest rate calculated by averaging all of your current interest rates. It also gives you the option to choose a longer term to lower your monthly payment. Consolidating your federal student loans allows you to maintain the benefits and protections that the federal government offers.

What about refinancing my federal student loans?

You can apply to refinance your loans through a private student loan company, but keep in mind that you’ll no longer be eligible for forgiveness or any other federal student loan benefits or protections. Refinancing turns federal loans into private loans; this process cannot be reversed.

That said, refinancing can be a great choice for borrowers who don’t qualify for student loan forgiveness and don’t expect to take advantage of other federal programs like deferment or forbearance. Refinancing can offer serious relief by giving you the chance to dramatically reduce your monthly payment. If you qualify for a lower interest rate, you could also reduce the total cost of your loan, saving you money and helping you get out of debt faster. Ready to see how much you could save? Check your rate with Earnest today. It’s fast, it’s free, and it won’t affect your credit score.

About the Author

Corey Buhay

Corey Buhay is a writer and editor based in Boulder, Colorado. She’s passionate about literature, the outdoors, and doing her taxes by hand. She has been writing about student loans and personal finance for Earnest since 2019. You’ll find her work in Outside Magazine, Backpacker Magazine, Smithsonian, and The Denver Post.