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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.
Chapter 7 bankruptcy. In Chapter 7 bankruptcy, if payment of your loans is not an undue hardship, youâll still owe them when your bankruptcy case is over. Chapter 13 bankruptcy. If you can't discharge your student loans, Chapter 13 bankruptcy provides some other ways that can help.For example, you may be able to pay a reduced amount during your Chapter 13 plan -- although you'll be on the hook for whatever amount is left after your repayment period ends.For detailed information on how Chapter 13 can help with student loans, see Nolo's article Student Loans in Chapter 13 Bankruptcy.or example, you may be able to pay a reduced amount during your Chapter 13 plan -- although you'll be on the hook for whatever amount is left after your repayment period ends. For detailed information on how Chapter 13 can help with student loans, see Nolo's article Student Loans in Chapter 13 Bankruptcy.