Student Loans Archives

Apr

2025

What Is Administrative Forbearance for Student Loans?

By Ashley Kilroy | Student Loans | Comments Off

Administrative forbearance for student loans occurs when your payments are paused or reduced by your lender or loan servicer, often due to account management or technical issues. This means you’ll get a break from federal student loan payments and often from interest accrual as well until the forbearance ends.

Keep reading to explore the ins and outs of administrative forbearance, how it can impact your financial future, and ways to manage your student loan debt.

Key Points

• Administrative forbearance temporarily pauses or reduces federal student loan payments, often due to servicer errors or disasters.

• It is usually automatic and may or may not stop interest accrual during the forbearance period.

• Other types of forbearance include general and mandatory forbearance, which require borrower applications and approval.

• Alternatives include income-driven repayment plans, deferment, loan consolidation, or refinancing.

• Refinancing federal loans with a private lender removes access to federal benefits but may offer lower interest rates or better repayment terms.

Defining Administrative Forbearance

Administrative forbearance is when your federal student loan payments are temporarily paused or reduced by your lender. This relief can be given due to system glitches, billing errors, or even natural disasters. For example:

• To tackle multiple issues with federal student loan servicing and repayment during the pandemic, the Biden administration opted for administrative forbearance. This paused payments for federal student loan borrowers and dropped their rates to 0% interest on student loans during the forbearance period.

• In late October 2023, the Department of Education (DOE) found that 2.5 million MOHELA borrowers received their billing statements late or with incorrect amounts, causing many to fall behind on their loan payments. To help, the DOE put these borrowers into administrative forbearance and withheld over $7.2 million from MOHELA, giving borrowers a chance to get back on track and keep their loans in good standing.

Administrative forbearance is usually applied automatically, so you don’t need to go through an approval process as with other types of forbearance. However, in some cases, you may need to contact your lender to opt in.

Other Types of Student Loan Forbearance

Administrative forbearance isn’t the only type of relief available. Other types of student loan forbearance include:

• General Forbearance: Also known as discretionary forbearance, this is when your loan servicer decides if you qualify for a break from payments when you can’t afford them. It’s available for Direct Loans, Federal Family Education Loan (FFEL) Program loans, and Perkins Loans, and lasts up to 12 months at a time. If you’re still having trouble after that, you can request another forbearance period.

• Mandatory Forbearance: If you meet certain criteria, your loan servicer has to grant you forbearance on Direct, FFEL, and Perkins Loans. Specifically, this applies if you’re in a medical or dental residency, your loan payments are 20% or more of your income, or you’re completing qualifying teaching or military service. The forbearance lasts up to 12 months at a time and can be extended if you still qualify.

Keep in mind, forbearance is typically offered for federal student loans. If you have private loans (say, from a student loan refinance), your options will depend on your lender.

When Is Administrative Forbearance Granted?

Administrative forbearance is typically granted in situations like these:

• You were given a deferment, but your lender later found out you weren’t eligible.

• There was a period in which payments were overdue before your deferment started.

• There’s a gap between when you should start repaying and when your lender schedules your first payment.

• Your loan is sold or transferred, and you’re less than 60 days behind on payments.

• Your loan servicer needs time to determine if you qualify for a discharge, such as for bankruptcy or school closure.

• There’s a delinquency period left after a deferment or mandatory forbearance before the next payment is due.

• You’ve been affected by a natural disaster.

Advantages and Disadvantages of Administrative Forbearance

Administrative forbearance offers both benefits and drawbacks. Here’s what you need to know.

Benefits of Temporary Relief

• Administrative forbearance, while not under the borrower’s control, can provide unexpected financial relief when it occurs.

• Interest does not usually accrue during the period of administrative forbearance.

• Typically, you will get credit toward income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF) for months that your loan spends in administrative forbearance.

Downsides of Administrative Forbearance

• During administrative forbearance, there is the possibility that your loan servicer might have interest accrue during the forbearance period or part of it. For instance, when the Covid student loan pause ended in August 2023, Nelnet advised borrowers that interest would accrue in the month of September (which was considered a month of administrative forbearance). Payments began to be due again in October. Though rare, this kind of scenario of interest accrual during forbearance could mean you owe more money.

• In certain situations, there is no impact on loan forgiveness programs. That is, time spent in administrative forbearance may not count toward loan forgiveness. This is the case with income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) during the SAVE plan’s pause (more on that below). In this situation, the time it takes to qualify for forgiveness could be extended.

Applying for Forbearance

When a loan servicer grants administrative forbearance, it’s usually an automatic process. This means that if you’re eligible, your servicer will notify you of the forbearance, and your loan payments will be paused without your needing to do anything.

However, if you want to qualify for general or mandatory forbearance, you’ll usually need to contact your loan servicer and submit a request.

Required Documentation

To apply for general or mandatory forbearance, you’ll need to provide specific documentation. This can include proof of income, employment status, or financial hardship. In some cases, your loan servicer may request additional information.

Notification and Approval Timeline

Once you’ve submitted your request for forbearance, your loan servicer will review your application and notify you of their decision, typically within seven to 10 days. If approved, you’ll receive information on the start date of your forbearance period.

It’s important to continue making payments until you receive a notification of forbearance approval with a start date. Failure to do so may result in loan default, which can impact your credit.

Duration and Renewal Process

Forbearance periods usually last up to 12 months at a time. If you need to pause your payments after the initial forbearance period ends, you can apply to extend forbearance. Make sure to contact your loan servicer before your current forbearance period expires to discuss your options and submit any necessary paperwork for renewal.

Alternatives to Forbearance

If student loan forbearance isn’t an option, there are a few other ways to ease the burden of your student loan debt if you’re facing financial challenges.

Income-Driven Repayment Plans

With an income-driven repayment plan, your student loan payments are tailored to your income and family size. In some cases, you might pay as little as $0 per month. Your monthly payments are usually calculated based on a percentage of your income.

To qualify, you must submit an application. Then every year after approval, you’ll need to update your income and family size, a process known as recertifying your IDR plan. Once your IDR plan term ends, usually after 20 to 25 years, any remaining student loan balance is typically forgiven.

The DOE offers one active plan and one that is paused due to legal review:

• Income-Based Repayment (IBR) Plan: Depending on when you borrowed your loan, this plan requires borrowers to pay between 10% and 15% of their discretionary income, with loan terms usually lasting 20 to 25 years.

• Saving on a Valuable Education (SAVE) Plan (formerly REPAYE Plan): The SAVE plan was designed to set payments at 5% of income for undergraduate-only borrowers and between 5% and 10% for those with any graduate loans. Loan forgiveness was intended to kick in after 20 years for undergraduate loans and 25 years for graduate or professional loans. However, at this time, the plan has been paused while the Supreme Court considers lawsuits regarding the program.

Deferment Options

Lenders automatically defer student loans while you’re enrolled in school and for six months after graduation. You may also request deferral for the reasons below. (A couple of points to keep in mind: Interest will likely accrue during a deferment period, and you may not make progress toward forgiveness while in deferment.)

Here are other types of deferment vs. forbearance you may qualify for:

• Cancer treatment deferment

• Economic hardship deferment

• Graduate fellowship deferment

• Military service and post-active duty student deferment

• Parent PLUS borrower deferment

• Rehabilitation training deferment

• Unemployment deferment

Loan Consolidation or Refinancing

If you’re dealing with multiple federal student loans, you can combine them into a single Federal Direct Consolidation Loan. Just keep in mind, this typically won’t lower your interest rate — the new rate is a weighted average of your current rates, rounded up a bit.

Another option is to consider refinancing student loans, which might include federal and private student loans. This means you take out a new private loan to pay off all your existing student loans, rolling them into one payment.

You can use a student loan refinance calculator to evaluate how this might help you save. You could potentially get a lower interest rate or a longer repayment period, making your payments more manageable. An important heads-up, however: If you choose to refinance your federal loans, you’ll lose access to federal benefits and protections. Also, if you extend your loan term, you may pay more interest over the life of the loan, increasing your overall borrowing costs.

The Takeaway

Administrative forbearance on student loans is an automatic pause that loan servicers place on your payments for various reasons, like if they made a mistake with your billing or a natural disaster has occurred. They might or might not stop interest accrual during this time. If you’re having trouble managing your student debt, you might want to consider student loan deferment, income-driven repayment, or refinancing to better manage your payments.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Does administrative forbearance affect credit scores?

Your credit score usually won’t be affected when your loan is in administrative forbearance as long as you follow the agreement’s terms.

Can administrative forbearance be applied retroactively?

Yes, loan servicers can retroactively apply administrative forbearance to federal student loans. This can help cover past due amounts before you start a new repayment plan. It’s also useful if there are administrative or technical issues, like receiving incorrect or late billing statements, that prevent you from making payments.

What happens after administrative forbearance ends?

Once administrative forbearance ends, your payments will usually resume, and interest will begin to accrue again if it had been paused. It’s important to be prepared for these payments to ensure you stay on track with your loan repayment schedule as stated in your loan agreement.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

Photo credit: iStock/PeopleImages

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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SOSLR-Q324-009

Apr

2025

Student Loan Repayment & Forgiveness for the Self-Employed

By Melissa Brock | Financial Topics, Student Loans | Comments Off

Paying off student loans when you’re self-employed can be challenging. While being your own boss has its rewards, your income can be unpredictable, which can make it tough to make monthly student loan payments.

Fortunately, there are programs that can help entrepreneurs and freelancers, including loan repayment plans and student loan forgiveness for the self-employed. Read on to learn about the different options, plus strategies to help you pay off your student loans faster.

Key Points

• Student loan borrowers who are self-employed may be able to take advantage of loan repayment plans and student loan forgiveness options.

• Income-driven repayment plans that typically reduce monthly student loan payments for those who qualify are one option to explore.

• While self-employed individuals generally are not eligible for Public Service Loan Forgiveness, there may be forgiveness programs in their state they qualify for.

• Freelancers and other self-employed people may be able to take the student loan interest deduction of up to $2,500.

• Setting up a budget to help set aside money each month for student loan payments can be helpful to keep borrowers on track.

Understanding Student Loan Repayment for the Self-Employed

When you take out student loans, you sign a Master Promissory Note (MPN), a legal document in which you promise to repay your loans, plus interest and fees.

You can log into your account at StudentAid.gov and review your student loan balance and other loan information on your dashboard. There, you’ll also find the name and contact information for your loan servicer, which is the company that disburses your loan, handles billing and payments, and can help you choose the best repayment plan for your situation.

For example, if you have federal loans, and you’re struggling with student loan debt, you might consider the Graduated Repayment Plan, where your payments start out low and rise approximately every two years.

Or you could explore an income-driven repayment plan to help lower your student loan payments.

Recommended: Best Self-Employed Jobs for Extra Income

Income-Driven Repayment Plans for the Self-Employed

Income-driven repayment (IDR) plans base your monthly federal loan student payments on your discretionary income and family size. Although applications for IDR plans were temporarily on hold beginning in mid-February 2025 after a federal court issued an injunction, as of March 26, online applications for three of the IDR plans are now available again. However, forgiveness through most of these plans remains paused.

There are four IDR plans:

• Income-Based: Payments are generally about 10% of a borrower’s discretionary income on this plan, and any outstanding balance is forgiven after 20 or 25 years. Note that on the IBR plan, forgiveness after the repayment term has been met is still proceeding at this time, since this plan was separately enacted by Congress.

• Saving on a Valuable Education (SAVE): As of March 2025, the SAVE plan is no longer available after being blocked by a federal court. Forgiveness has been paused for borrowers who were already enrolled in the plan and they have been placed in interest-free forbearance.

• Pay As You Earn (PAYE): A borrower’s monthly payment on PAYE is roughly 10% of their discretionary income, and they make 20 years of payments. As of March 2025, forgiveness has been paused. Borrowers who were already enrolled in the plan have been placed in interest-free forbearance since forgiveness has been paused.

• Income-Contingent Repayment (ICR): The monthly payment amount on this plan is either 20% of a borrower’s discretionary income divided by 12, or the amount they would pay on a repayment plan with a fixed payment over 12 years, whichever is less. The repayment term is 25 years. As of March 2025, forgiveness has been paused for this plan. Borrowers who were already enrolled have been placed in interest-free forbearance.

Student Loan Forgiveness Programs for Self-Employed Borrowers

There are no forgiveness programs specifically for borrowers who are self-employed or who work as freelancers. However, you might qualify for forgiveness under a broader federal plan or a state-based program.

Public Service Loan Forgiveness (PSLF) and Nonprofits

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on a borrower’s federal Direct loans after they make 120 qualifying monthly payments under a qualified repayment plan while working for an eligible nonprofit or government agency. Unfortunately, self-employed individuals typically don’t qualify for PSLF because eligibility is based on working for a qualified employer.

It’s worth noting that in March 2025, President Trump signed an executive order to limit eligibility for PSLF and requested an update to the program’s regulations. The program remains unchanged for now, according to the Federal Student Aid website.

Income-Driven Repayment (IDR) Forgiveness

Typically, the remaining balances on eligible student loans are forgiven under IDR plans after a borrower makes a certain number of qualifying on-time payments over 20 to 25 years. But as of late March 2025, forgiveness has been paused on all of the IDR plans except IBR. (The IBR plan is excluded because it was enacted separately by Congress.)

You can find out more and get updates about IDR and forgiveness on the Federal Student Aid website.

State-Based Loan Forgiveness Programs for Entrepreneurs

Many states offer self-employed student loan forgiveness programs, typically for public service fields like health care, teaching, and law. Look into the professional association in your state or check your state’s government website for more information about programs that are available.

For example, if you have a law degree and you’re self-employed with your own practice, you can take advantage of statewide loan repayment assistance programs (LRAPs) in 24 states. You can reach out to your state’s bar association to learn more about specific loan forgiveness options you may be eligible for.

Recommended: Law & MBA Refinancing

Tax Considerations for Self-Employed Borrowers

As a student loan borrower and self-employed individual, you may be able to take the student loan interest deduction on your taxes. If you qualify for the full deduction, you can deduct student loan interest up to $2,500 or the total amount of interest you paid on your student loans, whichever is lower.

To be eligible for the deduction, you must meet the following criteria:

You paid interest on a qualified student loan during the tax year.

• Your modified adjusted gross income (MAGI) is less than a specified amount that is set annually.

• Your filing status is anything except married filing separately.

• Neither you nor your spouse can be claimed as a dependent on someone else’s return.

• You are legally required to pay the interest on a student loan.

Strategies to Pay Off Student Loans Faster When Self-Employed

In addition to loan forgiveness for the self-employed, student loan repayment plans, and state-based programs you may be eligible for, there are also techniques that can help you repay your loans faster. Here are a few to consider.

Budgeting and Setting Aside Funds for Loan Payments

Creating a budget and dedicating a set amount each month toward your loan payments can help you stay on track to pay them off. Once you look at the amount of income you have coming in, you may even be able to direct additional money to your loan principal, which could help reduce the amount of interest you owe over the life of the loan.

Using Business Income to Cover Student Debt

Generally, student loan payments cannot be used as a business expense deduction on your taxes. However, as discussed, you may be eligible for the student loan interest deduction. Additionally, the more income your business earns, the more you may be able to pay yourself, which means you could direct more funds to your monthly student loan payments.

Refinancing Options for Entrepreneurs

You might also consider refinancing your student loans. With a student loan refinance, you trade your existing loans for a new loan from a private lender. Ideally, you might qualify for a lower interest rate or better loan terms.

You can refinance both private and federal student loans. For instance, you could refinance health care student loans if you decide to pursue that option. However, it’s important to understand that if you refinance federal student loans, you’ll lose access to benefits such as IDR plans. Make sure refinancing is right for you before you move forward with it.

💡 Quick Tip: Refinancing comes with a lot of specific terms. If you want a quick refresher, the Student Loan Refinancing Glossary can help you understand the essentials.

The Takeaway

There are repayment plans, student loan forgiveness, and loan assistance programs for those who are self-employed and working to repay their student loan debt. You can investigate income-driven repayment plans on the Federal Student Aid website and check with your state to find out about any forgiveness or loan assistance programs they offer to those in your field.

Also, you can also consider options that may help you pay off your loans faster, such as paying extra toward your loan principal and exploring student loan refinancing.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can self-employed borrowers qualify for student loan forgiveness?

Self-employed borrowers may qualify for federal student loan forgiveness under income-driven repayment plans. You can find out about the available IDR plans at StudentAid.gov, and fill out an online application if you qualify. However, be aware that as of late March 2025, forgiveness on these plans is paused.

Your state might also offer student loan forgiveness programs, especially if you are in health care, teaching or law, among other professions. Check with the relevant professional association in your state and your state’s government website to find out more.

How does income verification work for self-employed repayment plans?

You must provide income verification to qualify for income-driven repayment plans. Proof of income includes your most recent federal income tax return or pay stubs.

What tax deductions are available for self-employed student loan payments?

You may qualify for the student loan interest deduction of up to $2,500 or the amount of interest you paid on your student loans during the year, whichever is less. Your modified adjusted gross income (MAGI) must be less than a specific amount that’s set annually, along with other eligibility requirements.

Are there any special loan repayment programs for entrepreneurs?

There are no special student loan repayment programs for entrepreneurs. However, your state may offer loan repayment or assistance programs you might qualify for. Check with any professional organizations you belong to for more information, as well as your state’s government website.

How can freelancers manage student loan payments without steady income?

Freelancers with inconsistent income can typically still take advantage of income-driven repayment plans, which can potentially lower your student loan payments. However, you will need to provide income verification, such as your most recent federal income tax return or paychecks, to see if you qualify

In addition, you can use other strategies to manage student loan payments, such as setting up a budget to help direct money to your monthly payments and claiming the student loan interest deduction on your taxes, if you qualify.

photo credit: iStock/Jacob Wackerhausen

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q125-018

Apr

2025

How to Keep Your Student Loans Organized

By Jennifer Calonia | Financial Topics, Student Loans | Comments Off

Many borrowers take out multiple student loans throughout their college years to help pay for their education. But staying on top of the details for every student loan you have can be tricky.

You may have both federal and private student loans to keep track of. You probably owe different amounts on each one, the repayment terms and monthly due dates may vary, and you might have several different loan servicers to deal with. That’s a lot to juggle!

Fortunately, learning how to keep your student loans organized can make it easier to manage your payments — and make your life a little less stressful, too. Here’s how to tackle the process.

Key Points

• Organizing student loans can help borrowers manage their payments more effectively and reduce stress.

• Create a comprehensive inventory of all student loans, including type of loan, balance, interest rate, and due dates.

• Regularly review student loan information from your lender or loan servicer for accuracy and updates.

• Use spreadsheets or digital tools to track payments and balances efficiently.

• Monitor repayment progress and update records monthly to stay organized.

Importance of Organizing Student Loans

Student loan borrowers owe an average of $38,375 in student loan debt, according to the Education Data Initiative. Organizing your student loans is one way to help repay that kind of debt efficiently. Being organized can help you see exactly how much you owe on your loans each month, choose the best repayment strategy for your situation, and schedule your payments so they’re on time.

Organizing your student loans can also be helpful if you’re considering student loan refinancing. For instance, if some of your student loans have an interest rate that’s high, you might want to see if you could qualify for a lower rate or more favorable terms through refinancing. In order to submit an application for refinancing, you’ll need to provide the details about your loan to a new private lender. When your loans are organized, you’ll have that information readily available.

Learn more: How to Refinance Student Loans

Steps to Organize Your Student Loans

Organizing your loans takes a little time initially, but the process is fairly easy to do once you get started. Here’s how to organize student loans step by step.

Create a Comprehensive Inventory

Compiling all your loan information in one place provides you with a complete view of what you owe. Think of it as your own personal student loan organizer. Here is the information you’ll want to collect:

• Student loan type (federal or private)

• Loan disbursement date

• Original principal balance

• Current balance

• Interest rate and type (fixed or variable)

• Grace period on the loan

• Repayment term

• Payment plan you’re on for federal loans

• Minimum monthly payment amount due

• Payment due date

• History of any payments you’ve made so far

• Name and contact information for your lender or loan servicer

Learning how to organize your student loans after graduation — or even better, setting up this kind of inventory as soon as you borrow your first student loan — can help you devise a payment game-plan.

Develop a Repayment Strategy

That brings us to the next step: using the data you’ve gathered to figure out the best strategy for your student loan repayment goals.

Say your priority is to reduce the amount of interest you pay. With the information from your student loan inventory list, you can quickly spot the education loans with the highest rate. Then you can decide the best way to pay that interest down. For instance, you might opt for the debt avalanche method, which involves putting extra funds toward repaying the loan with the highest interest rate first.

Or if your goal is to lower student loan payments, take a close look at the repayment plan you’re enrolled in for your federal loans. For example, if you’re on the Standard Repayment Plan, you can explore the other options, such as the Graduated Repayment Plan, in which your payments start out lower and gradually increase every two years — the idea being that, ideally, your income will rise as you advance in your job.

Just be aware that on the graduated plan, because your payments are smaller at first, you’ll likely pay more interest than you would on the standard plan. Weigh the pros and cons of the various repayment options to see if it makes sense for you to change student loan repayment plans.

Monitor Your Progress

As you make your monthly loan payments, update your information to stay organized. Record the payment dates and amounts and the new loan balance. That way, you can see the current status of all your student loans at a glance.

If you find that there’s still too much to keep track of, you might consider streamlining the process. One way to do this is by consolidating student loans. Consolidation involves combining all your federal student loans into one loan with one monthly payment.

If you want to keep your access to federal programs and protections, you could explore a Direct Consolidation Loan. Note, however, that consolidating streamlines the loan paying process, but it generally doesn’t save you money. With a Direct Consolidation Loan, your new interest rate is a weighted average of all your loans’ interest rates, rounded up to the nearest eighth of a percentage point. Any unpaid interest on the loans you’re consolidating will be added to the principal of the new loan.

If you have private student loans, refinancing is a way to consolidate your loans and combine them into one new loan, ideally with a lower interest rate or better loan terms if you qualify. There are positives and negatives of student loan refinancing, so be sure that you understand them before moving ahead.

Recommended: Student Loan Refinancing Calculator

Tools and Resources for Managing Student Loans

There are many tools you can use to help keep your student loans organized. The following resources are a good place to start.

Spreadsheets and Tracking Documents

You can use digital tools to organize your loans, such as apps that help you plan and track your debt repayment. There are also student loan trackers that let you manage your student loan debt in one place.

Or you can simply set up a spreadsheet to get an overview of your student debt. Add columns for the inventory bullet points listed above, and create filters for each column to view the data in a way that’s easiest and most effective for you.

Finally, be sure to keep tabs on all the loan documents you’ve received. This includes financial aid award letters, copies of private student loan applications, loan promissory notes, and billing statements. You can either keep a physical file folder of this information or go paperless by creating digital folders on your computer to store any correspondence from your lender or loan servicer.

Loan Servicer Portals

Another method you can use instead of or in addition to setting up your own tracking system is to take advantage of tools offered by your loan servicer. All details regarding your loan can typically be found on the loan servicer’s account portal. (If you’re not sure who your federal loan servicer is, log in to your account at StudentAid.gov.)

On your loan servicer’s website, create a login if you haven’t done so already. Once you’re in, you should be able to access the key information about your loans. If you have loans through multiple lenders, you’ll need to log into each portal individually to see your loan details.

While loan servicer portals are a convenient way to access your loan details, relying on this method alone can make it hard to see the big picture regarding your student debt. That’s why having all of your loan information live in one place, like in a spreadsheet, can be useful.

Benefits of Staying Organized

Organizing your student loans is a practical way to manage your student debt and ensure that your loan bills are paid on time. And along with the logistical benefits, organizing can also help you feel less anxious about your loans and give you a sense of control.

Reducing Stress

Dealing with student loan debt can be stressful. And if your loan information is disorganized and hard to find, that can just add to the anxiety. Plus, you might miss a payment, which can be especially stressful.

Organizing your student loan information so you know exactly where to find it, and then keeping it updated, can save you a lot of worry. If you want to switch to a new repayment plan or consolidate or refinance your loans, you’ll have all the pertinent details at your fingertips.

Best of all, as you pay off your loans and record your progress, you can see your balance start to shrink. That can be rewarding and motivating.

💡 Recommended: How to Consolidate Student Loans

The Takeaway

Organizing your student loans so that all the details you need are in one easy-to-access place can help you manage your payments. Getting organized can be as simple as creating a computer spreadsheet or using a digital tool like a debt repayment app or your loan servicer’s portal.

Once you’re done organizing, if you ever want to change your loan repayment option, streamline your loans with consolidation, or potentially get a lower interest rate through student loan refinancing, you can simply pull up your spreadsheet or tracking tool to get the information you need.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How often should I review my student loan information?

It’s a good idea to review the accuracy of your student loan debt regularly. For example, you might do an inventory of your loan balances and payment history quarterly, or even monthly, to make sure everything is correct. If you are planning to change your student loan repayment option or you’re considering refinancing or consolidating your student loans, always review your loan information first to make sure it’s accurate and up to date.

What should I do if I have multiple loan servicers?

If your student loan debt involves multiple loan servicers, one organizing method is to keep an up-to-date record of your student loans listed under each servicer. Include the loan servicer’s contact information as well as the loan details like the principal balance, interest rate, repayment terms, and payment due dates. Record each payment and the date as you make it.

Can consolidating my loans help with organization?

Consolidation may help you streamline your student loans. Consolidation involves merging federal student loans into one loan with one payment so you have less to organize and keep track of.

How can I stay informed about changes to my loan terms?

To stay informed about changes to your loan terms, make sure that your student loan servicer or lender has your current contact information. This includes your mailing address, phone number, and email address. Also, it’s helpful to log in to your lender’s online portal regularly to view your loan’s current status and details and check for any updates.

Where can I find reliable resources for student loan management?

Federal student loan borrowers can log in to their StudentAid.gov account for tools, information, and resources on managing their student loans. On their account dashboard, they can see their loan details as well. If you have private student loans, visit your lender’s online portal and log in to your account to access your loan details. Depending on the lender, they might also offer tools or information to help you track and manage your loans.

photo credit: iStock/GaudiLab
SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q125-013

Apr

2025

Social Workers Student Loan Forgiveness Guide

By Jennifer Calonia | Financial Topics, Student Loans | Comments Off

A career as a social worker requires a bachelor’s degree, and many individuals go on to pursue a Master of Social Work (MSW). Student loan forgiveness programs for social workers can be a valuable repayment strategy for those with student loan debt.

There are a number of federal and state programs that offer student loan forgiveness for social workers, as well as resources dedicated to helping social workers manage their loans. Read on to learn what you may be eligible for.

Key Points

• Social workers may qualify for federal and state student loan forgiveness programs.

• Average student loan debt for social workers ranges from $27,183 for a bachelor’s degree to $46,850 for a doctoral degree.

• Public Service Loan Forgiveness for social workers requires 120 qualifying payments and full-time employment at an eligible government or nonprofit organization.

• Income-Driven Repayment plans typically offer lower monthly payments and may also provide forgiveness after 20 to 25 years.

• Many states have State Loan Repayment Assistance Programs (LRAPs) for those who qualify. These programs generally require a specific service commitment.

Overview of Student Loan Debt in Social Work

The student loan debt among social work graduates today has increased compared to a decade ago, according to the latest survey by the Council on Social Work Education (CSWE).

Average Debt Levels Among Social Workers

Nearly half (48%) of Bachelor of Social Work graduates had an average of $27,183 in student loan debt at graduation, according to the CSWE report. About 35% of MSW graduates had an average student loan debt of $38,500, while the average student loan debt for social workers who earned a Doctor of Social Work (DSW) was $46,850.

Impact on Career Choices and Financial Stability

The Bureau of Labor Statistics (BLS) projects a 7% increase in social work employment between 2023 and 2033. This is higher than the projected average growth for all professions during the same period. However, the median annual wage among social workers is $58,380, with the lowest 10% of earners making just $38,400, according to the BLS.

Shouldering student debt that’s almost as much as their annual salary in some cases can be financially challenging and stressful for social workers. Student loan forgiveness for social workers can help manage the cost.

Federal Loan Forgiveness Programs

There are federal student loan forgiveness programs that social workers may be able to enroll in. To be eligible, they must have qualifying student loans and be enrolled in a qualifying repayment plan. Borrowers who aren’t on an eligible forgiveness repayment plan have the option of changing student loan repayment plans.

Public Service Loan Forgiveness (PSLF)

Social workers who are employed by a government agency — whether federal, state, local, or tribal — or a qualifying nonprofit organization may be eligible for Public Service Loan Forgiveness. Participants must be employed full-time and have qualifying federal Direct Loans.

While serving under an eligible employer, borrowers must enroll in an income-driven repayment (IDR) plan or the Standard Repayment Plan. After completing 120 qualifying payments, any remaining Direct Loan balance is forgiven, tax-free.

In March 2025, President Trump signed an executive order to limit eligibility for PSLF and requested an update to the program’s regulations. The executive order is being reviewed, and the PSLF program remains unchanged for now, according to the Federal Student Aid website.

Income-Driven Repayment (IDR) Plan Forgiveness

If you don’t qualify for PSLF because you don’t work for a qualifying employer, forgiveness through an IDR plan might be an option. Monthly payments on these plans are determined by borrowers’ discretionary income and family size. At the end of the repayment term, any remaining balance is typically forgiven.

However, while borrowers can still fill out and submit the online application for these plans, forgiveness is paused as of March 2025 on all but one of the IDR plans:

• Pay As You Earn (PAYE) Repayment: Payments are set at 10% of discretionary income over 20 years.

• Income-Based Repayment (IBR): Payments for loans borrowed after July 1, 2014 are 10% of discretionary income over 20 years. On the IBR plan, forgiveness after the repayment term has been met is still proceeding at this time since IBR was separately enacted by Congress.

• Income-Contingent Repayment (ICR) Plan: ICR payments are 20% of a borrower’s discretionary income divided by 12, or the amount they would pay on a repayment plan with a fixed payment over 12 years, whichever is less. The repayment term is 25 years.

• Saving on a Valuable Education (SAVE): As of March 2025, the SAVE plan is no longer available after being blocked by a federal court. Forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

National Health Service Corps Loan Repayment Program (NHSC LRP)

Licensed Clinical Social Workers (LCSWs) with federal or private student loans may be eligible for loan repayment assistance through the National Health Service Corps Loan Repayment Program. Participants must agree to serve in a preapproved health professional shortage area for a two-year half- or full-time service contract.

In exchange for their service commitment, LCSWs can receive up to $25,000 in forgiveness for half-time service, or up to $50,000 in loan forgiveness for a full-time contract.

State-Specific Loan Forgiveness Programs

Some states that are experiencing a shortage of certain skilled professionals, like health care providers and social workers, sponsor their own loan repayment assistance programs (LRAP). These programs may offer forgiveness for federal and private student loans. Program requirements vary, but typically, you must meet citizenship and state licensing requirements, and agree to a service commitment, among other criteria.

For example, Tennessee offers an LRAP for social workers that provides up to $50,000 in loan repayment assistance for a two-year service obligation with a service extension option.

Check your state’s government or state health department website to see if it offers a loan repayment program for social workers.

Eligibility Criteria for Loan Forgiveness

All student loan forgiveness programs for social workers set specific requirements that participants must adhere to. The criteria for loan forgiveness varies between programs, but generally, you’ll find the following common features.

Employment Requirements

Many programs establish guidelines regarding qualifying employment. For example, under PSLF, loan forgiveness is only available to social workers who work for a government agency or nonprofit. You might need to maintain this employment type for the duration you’re pursuing loan forgiveness.

Loan Types and Repayment Plans

Certain student loan forgiveness programs restrict the types of student loans that are eligible for forgiveness. For example, PSLF and forgiveness through an IDR plan only permit qualifying federal Direct Loans. Private student loans and other federal student loan types are ineligible.

However, if you have a noneligible federal student loan, consolidating student loans into a Direct Consolidation Loan could help you gain access to these forgiveness plans.

Additionally, check whether the program requires you to be enrolled in a particular repayment plan to qualify, like an income-driven repayment plan.

Another option some borrowers might consider is student loan refinancing. With refinancing, you trade your current student loans for a new loan from a private lender. If you qualify, the new loan might have a lower interest rate or more favorable loan terms, which could make loans easier to manage.
But there are some drawbacks. For example, if you refinance federal student loans, you lose access to federal benefits such as IDR plans. Be sure to consider this option carefully to make sure it’s right for you.

Recommended: Student Loan Refinancing Calculator

Service Commitments and Obligations

Loan repayment assistance programs can be a valuable forgiveness option for social workers, especially if they have private loans. However, a key criterion for these opportunities is typically a service obligation.

To qualify, you might be required to work in an approved shortage area at least 30 hours per week over a predetermined number of years.

Application Processes

The steps you need to take to apply for loan forgiveness vary by program. With federal loan forgiveness for social workers like PSLF, you submit the formal application after successfully making 120 qualifying payments, in addition to meeting all other eligibility criteria. By contrast, the NHSC loan repayment program requires an application upfront.

Additional Resources and Support

If navigating your student loan debt feels overwhelming, there are other resources available to social workers.

National Association of Social Workers (NASW) Initiatives

The NASW supports the well-being of the social worker community at the national level through advocacy, events, initiatives, and its podcast, “NASW Social Work Talks Podcast.” You’ll find discussions on a range of important topics, like mental health and student loan forgiveness.

Financial Counseling Services

If you’re struggling to pay your loans, financial counseling support may be helpful. Through organizations like the National Foundation for Credit Counseling (NFCC), you can connect with a certified credit counselor. Services include a complete financial review, customized repayment strategy, and additional resources to help you feel confident about tackling your student debt.

Educational Workshops and Webinars

You can look for student loan workshops in your community and webinars to familiarize yourself with your student loan repayment options. You can also check to see if your employer offers access to financial education workshops that cover student loan resources as an employee benefit.

The Takeaway

Although the cost of earning a degree in social work is significant, a number of student loan forgiveness programs for social workers offer some relief. Many have specific requirements to qualify, such as employment or service criteria, or the stipulation that you have a specific type of student loan.

Successfully achieving student loan forgiveness for social workers often takes years, but getting a portion of your student loans forgiven can be worthwhile.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What types of loans are eligible for forgiveness under federal programs?

Social workers must have eligible federal Direct Loans to qualify for most student loan forgiveness programs. Borrowers with Federal Family Education Loans (FFELs) and Perkins Loans can undergo a Direct Consolidation Loan to qualify. Private student loans are ineligible for federal loan forgiveness.

How do I apply for state-specific loan forgiveness programs?

See if your state offers a loan repayment assistance program (LRAP). State-sponsored programs might be featured on your state’s government website, higher education site, or state Department of Health website.

Where can I find support and resources for managing student loan debt as a social worker?

Social workers can access additional resources and support for managing their student debt through StudentAid.gov and the National Association of Social Workers.

What documentation is required when applying for loan forgiveness?

Documentation needed to apply for student loan forgiveness for social workers varies by program. Examples of documentation you might need include proof of qualifying employer and employment status, income, student loan statements, and payment history.

How can social workers qualify for Income-Driven Repayment (IDR) Plan Forgiveness?

Social workers must have qualifying federal Direct Loans to be eligible for IDR. There is an income cap for the Pay As You Earn (PAYE) and Income-Based Repayment (IBR) plans. Additionally, borrowers must recertify their income and family size annually. Upon completing the terms of the IDR plan, any remaining loan balance is forgiven.

photo credit: iStock/Ginnet Delgado
SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q125-008

Apr

2025

Who Actually Owns My Student Loans?

By Ashley Kilroy | Going to College, Student Loans, student_loan | Comments Off

Your student loans are owned by the government or a financial institution like a bank, credit union, or online lender. Who owns your student loans depends on the type of loans you have.

Knowing which organization or entity owns your student loans is important for managing your payments — and for anyone who wishes to be an informed consumer. Here’s how to find out who owns your student loan debt.

Overview of Student Loan Ownership

Federal student loans are typically owned by the U.S. Department of Education (DOE), while private student loans are owned by the private lender who issued them.

However, both the DOE and private lenders may partner with a third party known as a loan servicer to manage your loans. The loan servicer handles billing and can also help you with repayment options, such as loan consolidation or income-driven repayment (IDR) plans for federal loans. Whether your loans are federal or private, your loan servicer is your resource for any questions or issues.

Student loan servicers can change, however. This can happen if your student loan is sold to another company, for instance. In this case, you should receive a notification by mail or email about who your new servicer is and where to send your payments. But even if you miss the notice, it’s still your responsibility to make sure your loan payments get to the new loan servicer by the due date.

If you choose to refinance your student loans, potentially for a more favorable interest rate or term, you will get a new lender and loan owner in the process.

💡 Quick Tip: Refinancing comes with a lot of specific terms. If you want a quick refresher, the Student Loan Refinancing Glossary can help you understand the essentials.

Identifying Federal Loan Servicers

Your federal loan servicer is typically who you reach out to for anything related to your federal student loans. It’s important to know who they are and how to reach them.

How to Find Your Federal Loan Servicer

Once the DOE disburses your federal student loan, they will assign a loan servicer to manage it. The loan servicer will usually contact you directly. That way, when it’s time to start paying back student loans, you’ll know who to reach out to.

If you didn’t save their contact information, finding common student loan servicers is usually simple. Just log into your account dashboard at StudentAid.gov and go to the “My Loan Servicers” section. Or call the Federal Student Aid Information Center (FSAIC) at 800-433-3243.

The DOE sometimes moves student loans from one loan servicer to another. This transfer simply means a different company will be handling your loan and helping you manage it. For instance, you could talk to them about different student loan repayment options if you’re looking for another plan.

If your loan is transferred, the new loan servicer will typically inform you of the change by email or letter. Update your payment information with your bank or adjust the payment method for your monthly student loan bill to make sure your payments go through smoothly. Also, set up an account with the new servicer and double-check that your personal information is accurate so they can reach you if needed.

Identifying Private Loan Lenders

Determining who owns your private student loan can be a little more complicated. Here’s how to do it.

Checking Private Loan Ownership

There’s no one central website for private student loan servicers like there is for federal loans. To find out who owns your private student loans, you’ll need to individually contact each of your lenders.

Another option is to get your credit report from one of the three credit bureaus. Private lenders usually report loans, including student loans, to the credit bureaus, and the loan servicer should be listed on the report.

Why Loan Ownership Matters

Knowing who owns your student loan is critical for managing your student loan debt. Whether you’re still in college and not yet repaying your loans, or you’re paying off student loans early, your loan servicer is the one who handles the transactions and answers any questions you might have. They can also explain different repayment options and be a resource if you’re facing financial difficulties.

If you don’t know who your servicer is, you might miss important updates, payment deadlines, and opportunities to adjust your repayment plan.

The Takeaway

If you have federal student loans, the government owns your loans. With private loans, your loans are owned by a private lender. Both entities often use loan servicers to handle payments for your loan, so be sure to find out who your loan servicer is.

The owner of your loan may change over time. Student loans can be transferred or sold to other lenders. And if you decide to refinance your student loan — say, because you qualify for a lower interest rate or better term — you’ll get a new lender as part of that process.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can student loans be sold to other lenders?

Yes, a lender can sell your student loans. They may do so to free up capital and make other loans. Typically, the new owner of the loan will notify you of the change of ownership. Be sure to update your payment information with the new lender.

How can I find out who services my loans?

If you have federal student loans, you can log in to your account dashboard at StudentAid.gov and click on the “My Servicers” section to see who your loan servicer is. For private student loans, contact your lender directly for the information or pull your credit report, which should have the loan servicer listed.

What if I don’t recognize my loan servicer?

If you come across a loan servicer you don’t recognize, it’s a good idea to make sure they’re legitimate. Check with your lender to find out if this is the servicer they’re working with. Don’t give out any personal or sensitive information to anyone you don’t know. Be alert for scammers offering to help you with payments or loan forgiveness. Report anything that feels off or questionable. You can file a complaint online with the Department of Education’s Federal Student Aid.

About the author

Ashley Kilroy

Photo credit: iStock/Pla2na

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOSLR-Q324-020