Student Loan Forgiveness Just Changed: Here's What You Need to Know in 2025

If you’re overwhelmed by student loans or wondering whether you qualify for loan forgiveness through Borrower Defense or new repayment assistance, you’re not alone. At LoanSense, we’re fielding a surge of inquiries about both programs—especially with over 150 schools now on the Borrower Defense eligibility list and a new federal repayment plan rolling out for 2026.

✅ Need help now? Book a 15-minute Borrower Defense consult »

New Federal Repayment Assistance Program: What’s Changing?

Starting July 2026, new federal student loan borrowers will be automatically placed into a new repayment plan that adjusts based on your total loan amount:

• < $25K = 10-year plan
• $25K–$50K = 15-year plan
• $50K–$100K = 20-year plan
• > $100K = 25-year plan
  
  

For those entering the Repayment Assistance Program:

• Monthly payments are capped based on adjusted gross income (AGI):
• $10/month for incomes under $10,000
• Up to 10% of AGI for incomes over $100,000
• 💡 No balance growth: Unpaid interest won’t be added to your loan.
• Payments go directly to principal.
• ❗ Once enrolled, you can’t switch out of this plan.
  
  

Why this matters: It could reduce long-term debt burden for lower-income borrowers but extends repayment to 30 years—something to carefully consider.

Borrower Defense to Repayment: Are You Eligible?

More than 150 schools—many of them for-profit or online institutions—are now listed in the Sweet v. Cardona settlement, making their former students eligible to apply for federal loan discharge under the Borrower Defense program.

🔍 Check if your school is on the list here » http://bit.ly/3SCNCql

What qualifies?

• Misleading job placement promises
• Fraudulent transfer credit claims
• Aggressive or deceptive recruitment tactics
• Failure to deliver promised educational services

Key facts:

• Applications are complex (~25 pages) and require individualized evidence.
• No templates work—each case is unique.
• If the Dept. of Ed fails to respond in 3 years, your loans are automatically discharged.

🎯 Need help applying? LoanSense offers full application assistance or expert review. Learn more »

Why You Should Act Now

The Biden administration has expanded relief, but a shift in leadership could limit or end programs like Borrower Defense. If you're eligible and haven't applied, now is the time.

💥 Reminder: Applications submitted now are still being accepted. Delays could cost you thousands.

LoanSense Can Help

We’re more than just Borrower Defense experts. If you’re managing federal student loans, we can help with:

• Public Service Loan Forgiveness (PSLF)
• Income-Driven Repayment enrollment
• Student loan planning to qualify for a mortgage

💼 Explore all borrower services »

Ready to Apply for Borrower Defense?

• ✅ Check your school on our Borrower Defense School List
• 📅 Book a free 15-minute consult
• 📝 Need help gathering evidence? We have a public database of evidence

Share This

If you know someone who went to ITT, Walden, DeVry, or another for-profit college—share this blog. It could be worth $10K to $100K in forgiven loans.