Important Announcement

A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and parts of other income-driven repayment (IDR) plans.

Important Updates

Saving on a Valuable Education (SAVE) Plan Recertification Dates Extended

If you're enrolled in the SAVE Plan, there's good news. MOHELA, following guidance from the U.S. Department of Education, has extended your deadline to recertify your income-driven repayment (IDR) plan. No action is needed. Watch for communication on your new recertification date.

For the latest information on the SAVE Plan, visit StudentAid.gov/save.

Income-Driven Repayment (IDR) processing

A federal court issued an injunction changed how ED can implement certain parts of IDR plans. Because of these changes, the U.S. Department of Education has instructed federal student loan servicers to deny IDR applications where "lowest monthly payment" was selected, more than one IDR plan was selected, or an IDR plan was not selected. Visit Studentaid.gov/loan-simulator to review your options and apply for an eligible repayment plan.

Saving On A Valuable Education (SAVE) Plan Administrative Forbearance

In July 2024, a federal court injunction blocked parts of the SAVE Plan. As a result, eligible federal student loans were placed in forbearance with a 0% interest rate. During this forbearance interest had not accrued; therefore, loan balances (including principal and interest) have not increased during this forbearance. You will not have to make payments until the SAVE forbearance ends. In February 2025, a second federal court injunction ended the SAVE 0% interest rate. To comply with this injunction, loan(s) in the SAVE Administrative Forbearance began accruing interest on August 1, 2025.

You can view your interest rate, outstanding interest amount, or make payment toward interest via your online account. For more information, view our FAQs!

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Teacher Loan Forgiveness

Under the Teacher Loan Forgiveness (TLF) Program, if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, you may be eligible for forgiveness of up to $17,500 on your Direct Loan or Federal Stafford Loans. See StudentAid.gov/teach-forgive  this link will open in a new window for more information.

  • You must have been employed full-time as a teacher for five complete and consecutive academic years. At least one of those years must have been after the 1997-98 academic year.

  • You must have been employed in a an elementary or secondary school that meet all of the following:

  • Your teaching service may qualify if the consecutive five-year period includes qualifying service performed after the 2007-08 academic year at an eligible educational service agency.

The Teacher Loan Forgiveness application calls for consecutive, complete academic years of service for forgiveness. However, applicants who were unable to teach during a period of officially-declared natural disasters Hurricane Maria and/or Hurricane Irma, are allowed up to a one-year gap in service. The one-year gap in service is September 2017 thru September 2018.

This waiver applies for Teacher Loan Forgiveness applicants residing or working in the Commonwealth of Puerto Rico (PR) or the Virgin Islands of the United States (VI) affected by the officially-declared natural disaster Hurricane Maria and Teacher Loan Forgiveness applicants residing/working in the VI affected by the officially-declared natural disaster Hurricane Irma. This relief/wavier is available as part of the enactment of the Bipartisan Budget Act of 2018, Public Law No: 115-123.

You must not have had an outstanding balance on Direct Loans or Federal Family Education Loan (FFEL) Program loans as of Oct. 1, 1998, or on the date that you obtained a Direct Loan or FFEL Program loan after Oct. 1, 1998.

You are not eligible for forgiveness of any defaulted federal student loan unless you have made satisfactory repayment arrangements with the holder of the defaulted loans.

The loan(s) for which you are seeking forgiveness must have been made before the end of your five academic years of qualifying teaching service.


Note: Additional eligibility requirements may apply

After you complete the five-year teaching requirement, you can submit a Teacher Loan Forgiveness application. Go to StudentAid.gov/forms  this link will open in a new window to download the form.

As a result of a change in tax law, the Internal Revenue Service (IRS) has determined that loan balances that are discharged due to Death are not considered income for federal tax purposes if the discharge occurs during the period from January 1, 2018, through December 31, 2025.

If you receive a Form 1099-C, you should keep the form with the borrower’s records, but you do not need to include it when filing the borrower's federal tax return. For additional information, visit irs.gov  this link will open in a new window .

The discharged loan amount may be considered income for state tax purposes. You may want to consult with the state tax office or a tax professional before you file the borrower’s state tax return.