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The Income-Contingent, or Income-Based Repayment Plans qualify you for loan forgiveness after 25 years of on-time payments. Forgiveness based on 20 or 25 years of on-time payments is only available to Federal Student loans. Private student loans do not qualify. Student Loan Discharge. There's one additional way to achieve student loan forgiveness which is called discharge. It is generally awarded by a judge and can apply to both Federal and private student loans.
Things youâll need to know. 1  You have a 6 month grace period that begins following following graduation or being unenrolled for longer than 6 months. 2  You begin accumulating interest (~6.8%) on your unsubsidized loans as soon as they are disbursed. 3  Student loans can never be defaulted on not even after bankruptcy.