When to stop waiting for student loan forgiveness

By Anna Baluch | Published on October 21, 2025

If you took out federal student loans, you may qualify for forgiveness through programs like Public Service Loan Forgiveness (PSLF) or income-driven repayment (IDR) plans1. For borrowers who meet the requirements, these programs can erase significant loan balances—often tens of thousands of dollars.

But forgiveness can take years to earn, and not everyone will qualify. If you're unsure you'll meet the criteria or your situation has changed, refinancing2 may offer a more predictable path forward.

Here’s what to consider when deciding whether to keep waiting—or explore other repayment options.

Forgiveness is worth pursuing—for the right borrowers

There are two main forgiveness programs for federal student loans:

• Public Service Loan Forgiveness (PSLF): Forgives your remaining balance after 120 qualifying monthly payments while working full-time for a government or nonprofit employer.

• Income-Driven Repayment (IDR): May forgive your balance after 20–25 years of qualifying payments based on your income and family size.

If you're on track for either program and confident you’ll remain eligible, forgiveness can be a powerful way to reduce or even eliminate your debt. There’s no interest rate low enough to beat a $0 balance.

But not everyone will qualify—and things can change

Forgiveness programs come with strict requirements. You’ll need to:

• Work in a qualifying job for PSLF (and stay there for 10 years)
• Keep your loans and payments in good standing
• Remain eligible over a long period of time

And while PSLF and IDR are still active today, they’re not guaranteed to stay the same. For example, the proposed College Cost Reduction Act could significantly change or limit forgiveness eligibility in the future.

There’s also been a lot of conversation about broader student loan cancellation. In 2022, the Biden administration proposed forgiving up to $20,000 in federal loans for eligible borrowers. But that plan was blocked by the Supreme Court in 2023. Since then, the administration has pursued a “Plan B” approach through negotiated rulemaking, aimed at offering relief to certain groups of borrowers. While some targeted cancellation efforts have moved forward, many remain delayed or tied up in legal challenges.

In short: forgiveness remains a moving target. If you're counting on it, make sure you're actively enrolled in a qualifying program—and have a backup plan in case policies shift or eligibility narrows.

When refinancing might be a better fit

Refinancing means replacing your existing loans with a new one—ideally at a lower interest rate or with terms that better match your goals. You’ll lose access to federal protections like PSLF and IDR, but in the right circumstances, refinancing can save you money or simplify your repayment3.

Refinancing may be a good option if:

You don’t expect to qualify for forgiveness

If you’re unsure about staying in public service for the full 10 years—or haven’t made consistent qualifying payments—refinancing could help you take control of your repayment plan now, especially if you can secure a lower interest rate.

You have private student loans

Private loans aren’t eligible for any federal forgiveness programs. If your loans are already private, refinancing may help reduce your interest rate or adjust your terms.

Your financial situation has improved

If your income is steady and your credit score has gone up, you may qualify for a more competitive interest rate through refinancing. Lower rates can reduce your total loan cost—even if you don’t qualify for forgiveness.

If refinancing feels right, Earnest can help

Refinancing isn’t the best choice for everyone. If you’re confident you’ll meet the requirements for PSLF or IDR forgiveness, sticking with your federal loans could lead to significant savings over time.

But if you’re unlikely to qualify for forgiveness—or if you’re looking for more flexibility or a lower rate—refinancing could help you take control of your repayment.

Earnest offers:

• No fees—no application, origination, prepayment, or late fees.
• Flexible terms to help you meet your financial goals.
• Fast, no-impact rate check—find out what you qualify for in under two minutes without affecting your credit score.

We’re here to support you with transparent tools and options—whatever path you choose. See if refinancing is a good fit.

About the Author

Anna Baluch

Anna Baluch is a freelance finance writer from Cleveland, OH. She enjoys writing content that helps people from all walks of life make good financial decisions. Her areas of expertise include student loans, refinancing, mortgages, personal loans, budgeting, and debt management.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 As a result of ongoing court actions, the terms of some Income-Driven Repayment (IDR) plans, including the SAVE plan, may be subject to change. Please refer to studentaid.gov for the current status of these plans.

2 Please note that you will lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

3 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.