Only federal student loans are eligible for federal student loan forgiveness. Since the federal government doesn’t issue private student loans, private debt is ineligible for federal student loan forgiveness. The common type of federal student loans are Direct Loans. For public service loan forgiveness, both FFELP Loans and Perkins Loans (which are not Direct Loans) were previously
Student loan borrowers first had to consolidate FFELP Loans and consolidate Perkins Loans to qualify for student loan forgiveness. Many borrowers who pursued public service loan forgiveness were denied student loan cancellation because they either didn’t consolidate student loans or made multiple student loan payments prior to student loan consolidation that were ineligible. Now, with these new rules changes, student loan borrowers with FFELP Loans and Perkins Loans have an easier path to student loan forgiveness. Let’s explore how.