The Case for Student Loan Cancellation in 2024

Recent years have seen a rise in the popularity of Student Loan Cancellation, generating discussions about its possible effects on people’s lives, the economy, and the educational system.

The Case for Student Loan Cancellation

Proponents contend that canceling student loans can help borrowers, spur economic growth, and address systemic injustices as the weight of student debt keeps rising.

Critics, however, express worries about the financial ramifications and other unforeseen effects of broad debt forgiveness.

Student Loan Cancellation

The possibility of easing the financial burden on millions of borrowers is one of the main justifications for canceling student loans. When graduates first enter the workforce, they frequently have to deal with the burden of repaying large loans.

It limits their capacity to make important life decisions like purchasing a home, beginning a family, or going back to school.

Student Loan Cancellation would free people from this financial load and enable them to make investments in their future without having to worry about debt all the time.

What is Student Loan Cancellation?

Student loan cancellation, sometimes referred to as discharge or reconciliation, is the process of absolving borrowers of their need to repay their student debts, either entirely or in part. The growing student loan debt crisis in many nations, particularly the US, has drawn a lot of attention to this idea in recent years.

Types of Student Loan Cancellation

Student loan cancellation, also known as student loan forgiveness or discharge, comes in various forms, each with its own eligibility criteria and conditions. The types of student loan cancellation include:

Public Service Loan Forgiveness (PSLF):

Eligibility; Borrowers working in qualifying public service jobs, such as government or non-profit organizations are eligible.

And this can only be accessible after making 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer, the remaining balance may be forgiven.

Income-Driven Repayment (IDR) Forgiveness:

Borrowers enrolled in income-driven repayment plans, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), or Revised Pay As You Earn (REPAYE). After 20 or 25 years of qualifying payments based on income and family size, any remaining balance may be forgiven. However, the forgiven amount may be taxable.

Teacher Loan Forgiveness:

Eligibility; Teachers working in low-income schools or educational service agencies. Conditions: After five consecutive years of qualifying teaching service, teachers may be eligible for forgiveness of up to $17,500 on certain federal student loans.

Total and Permanent Disability Discharge:

For borrowers who are totally and permanently disabled and unable to work. After providing proof of total and permanent disability, borrowers may qualify for a discharge of their federal student loans.

Closed School Discharge:

For Borrowers whose school closes while they are enrolled or shortly after withdrawal. Borrowers may be eligible for a discharge of their federal student loans.

It’s important for borrowers to carefully review the specific criteria and conditions associated with each type of loan cancellation and, if eligible, follow the necessary procedures to apply for forgiveness.

Additionally, policies and programs may change, so staying informed about current regulations is crucial.

How to Apply for Student Loan Cancellation

Applying for student loan cancellation involves specific steps and requirements depending on the type of cancellation you are pursuing. Below are general guidelines on how to apply for some common types of student loan cancellation:

Public Service Loan Forgiveness (PSLF). To apply for PSLF, use the PSLF Help Tool to generate and submit the PSLF & Temporary Expanded PSLF (TEPSLF) certification and application to your loan servicer.

Submit this form annually so your servicer has a record of your progress. When the 10 years are up, you’ll submit a final PSLF form to federal student loan servicer MOHELA.

Teacher Loan Forgiveness:

Submit this Teacher Loan Forgiveness Application to your loan servicer(s). You’ll need the chief administrative officer of your school or agency to complete the certification section of this application.

Nurse CORPS Loan Forgiveness:

You can apply through your account on the Health Resources & Services Administration’s (HRSA) site. This guide explains the process in greater detail.

IDR plan forgiveness:

Your loans should automatically qualify for forgiveness after you’ve spent 20 or 25 years in repayment. Reach out to your loan servicer about any steps you may need to take.

Total and permanent disability (TPD) discharge:

Borrowers with a total and permanent disability may get an automatic discharge of their student loans. If you don’t, you can complete a TPD discharge application and submit it to the servicer.

Along with your application, you’ll need to provide supporting documentation from the U.S. Department of Veterans Affairs (VA), the Social Security Administration (SSA) or an authorized medical professional.

Always check with your loan servicer or the official government websites for the most up-to-date information and application forms. Be diligent in providing accurate and complete information to expedite the processing of your loan cancellation application.

Frequently Asked Questions

Are Student Loans Still Getting Cancelled?

The president declared in 2022 that each individual will have up to $20,000 in federal student loans cancelled by the government. Later, judicial disputes prevented the government from discharging any debt, but not before the Education Department started accepting applicants.

How do you know if Your Student Loans have been Canceled?

You won’t have to make payments going forward if you are eligible for full discharge or forgiveness of your student loans and have filed the proper paperwork. Depending on the program you applied under, you might even be eligible for a refund in specific circumstances.

Can Student Loan be Refunded?

Refund cheques were only given to debtors who asked for them. Refunds did not happen on autopilot. Refunds were available for federal student loan payments made during the pandemic stop

However, as the refunds are now being made again and the general cancellation of the loans has been removed, the refunded amounts are being restored back to the loan balances of the students.


The discussion around the cancellation of educational loans is complex and takes into account social fairness, the economy, and financial responsibility.

It might be difficult to strike a balance between helping struggling borrowers and dealing with any potential drawbacks.

To create practical solutions that address the underlying causes of student debt and take into account the wider ramifications for both individuals and society at large, policymakers must carefully balance the benefits and drawbacks.

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