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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.
But if youâve defaulted on a federal student loan, your tax refund may not appear as expected. Most federal student loans are considered to be in default when payments are 270 days or more past due.Once your student loan hits default status, the federal government can and will go to extreme lengths to reclaim its money.ost federal student loans are considered to be in default when payments are 270 days or more past due. Once your student loan hits default status, the federal government can and will go to extreme lengths to reclaim its money.