Although the statute of limitations on your student debt has expired, the debt can remain on your credit report for up to 7 years. In addition, Federal student loans have no statute of limitations, but private student loans have a six-year average statute of limitations. A student loan debt collection agency can assist you in responding to a student loan lawsuit.

If you used student loans to pay for an undergraduate or graduate degree, you might be startled to learn that student loan debt has an influence on your credit and will appear on your credit report.

Many people are surprised by this because they believe student loans are "good" debt and are regarded differently than credit card and personal loan debt.

Whether your student loan debt is "good" or "bad," it will have an influence on your credit score.

Many people who have student loan debt wonder how long the debt will remain on their credit record. Some people, for example, wonder, "Will my student loan debt ever go away?" Will it be removed from my credit report after seven years?" This blog will provide answers to these queries as well as further information on student loans.

Let's jump right in.

Do student loans ever go away? 

Student loans do not simply vanish with time—at least not on their own.

Student loans can linger longer than credit card debt or other types of debt. Private and government student loans are not the same thing. For example, assume you obtained a Federal Direct Loan, a Federal Family Education Loan Program loan, or a Federal Perkins Loan. In that situation, you have some options for reducing or eliminating the debt sooner. A student loan debt collection agency can help in taking the required steps and help you repay the debt.

Debt forgiveness may be available through certain employers, repayment schemes, and repayment durations. Some examples are:

  • Public service loan forgiveness (PSLF): In general, if you work for the government for ten years and follow your income-driven repayment plan for 120 months, the remaining of your debt may be erased. Employers in the public sector include the federal government, state, local, and tribal governments, as well as some non-profit organizations. Specific qualifications can be found on the Student Aid page.
  • Teacher Loan Forgiveness: An agreement has been reached to forgive up to $17,500 in debt for qualified instructors who teach qualifying subjects at qualifying schools. To be qualified, you must have been taught either full-time for five years in a low-income education service agency, secondary school, or elementary school. Typically, you cannot be eligible for both Teacher Loan Forgiveness and PSLF at the same time.
  • Closed School Discharge: If you registered in a school that closed down shortly after you withdrew or were still a student, you may be eligible for debt forgiveness. Qualifying loans and instructions can be found here.

Other instances in which your federal student loan can be dismissed or forgiven can be found in this Student Aid overview. You're presumably thinking about the Biden administration's new student loan forgiveness program. We'll go over how it works in more detail below. 

How does Biden's student loan forgiveness plan work?

President Joe Biden stated in August 2022 that student loan holders would have up to $20,000 of their college debt canceled. However, this plan is only available to the following sorts of borrowers:

  • The idea will only help borrowers of federal student loans. As part of the new policy, private loans will not be forgiven.
  • Only borrowers with annual incomes of less than $125,000 and married couples or heads of households with annual incomes of less than $250,000 will be automatically eligible for $10,000 in debt forgiveness. The income level will be based on the tax years 2020 or 2021.
  • If a borrower fits the aforementioned criteria and additionally obtains a Pell Grant while enrolled, they will be eligible for up to $20,000 under student debt forgiveness.

To become eligible for the forgiveness plan, borrowers must apply to the program and demonstrate eligibility. The debt will not be automatically forgiven.