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If you qualify for student loan forgiveness or discharge in full, you will get a notification and will no longer need to make payments. In some cases, you may even get a refund. If only some of your debt is canceled or discharged, you'll still be responsible for repaying the rest of what you owe.

You may be eligible for discharge of your federal student loans based on borrower defense to repayment if you took out the loans to attend a school and the school did something or failed to do something related to your loan or to the educational services that the loan was intended to pay for.

You can cancel all or a portion of a loan. Before your loan is disbursed, you can cancel all or part of the loan at any time by notifying your school.

This means that your tax return won't be taken to offset your outstanding federal student loan balance for the 2023 tax season. The U.S. Department of Education says these collections will stay paused for six months after this payment pause ends. Eligible loans include: Defaulted Direct Loans.

The federal student loans that can garnish your refund if you're delinquent and in default are Direct Loans, Direct Consolidation Loans, Federal Family Education Loan Program (FFELP) Loans, and Federal Perkins Loans.

During the pandemic, the CARES Act paused student loan payments and dropped interest to 0 percent. The refund checks are designed for debtors who made voluntary payments during the pause from March 13, 2020, to December 31, 2022.

Traditionally, Stafford Loans have provided for cancellation in cases where the loan was discharged in bankruptcy, or the borrower died or became permanently disabled.

If you qualify for forgiveness, cancellation, or discharge of the full amount of your loan, you are no longer obligated to make loan payments. If you qualify for forgiveness, cancellation, or discharge of only a portion of your loan, you are responsible for repaying the remaining balance.