Lucky few Americans whose student debt was forgiven: ‘I hit the lottery’

Of the roughly 43 million Americans carrying student loan debt – totaling nearly $1.7tn – only a small fraction have seen their balances erased. For those who have, the relief has been transformative, with several telling the Guardian how the forgiveness has reshaped financial futures and opened doors to new careers, stability and long-delayed life plans.
“My loan was forgiven at the end of 2025 through the Public Service Loan Forgiveness Program,” said Laura Kluss, a 41-year-old clinical social worker based in Sacramento, California. “It was in the six figures at the time of forgiveness. Interest rates were making it extremely difficult to pay it down.
“At a $0 balance now, I can make plans for my future and not have the loan on my shoulders … I have spent 11 years working for the government with inmate populations and now with veterans for over seven years. With loan forgiveness, I have flexibility to move into a private industry if I want to one day,” Kluss added.
Earlier this week, the US Department of Education began notifying approximately 164,000 additional federal student loan borrowers that they may be eligible for automatic loan forgiveness. Those under consideration include individuals who attended one of more than 150 colleges accused of misconduct.
The relief targets borrowers whose institutions were found to have misled students – through misrepresentations of graduation rates, post-graduation employment outcomes or the true cost of degrees. In such cases, borrowers may qualify to have their federal loans discharged.
For Kimberly, a Pennsylvania resident, her student loan forgiveness felt like she had “hit the lottery”.
“I don’t even use my degree for my employment and when I was applying for jobs in that field, no one had even heard of the school I attended online,” she said, adding that she will now be able to pay off other debts, including her mortgage and vehicle.
She continued: “College is a scam unless you are going to be a doctor or a lawyer. Learn a trade instead.”
For Ian Hobbs, a 43-year-old part-time adjunct professor based in Arizona, forgiveness has been more complicated. While his loans were discharged, the long-term financial damage remains.
“It provides some relief emotionally and mentally. However, my debt has caused over a decade of rejections from mortgage loans and even job opportunities because of my massive debt-to-income ratio,” Hobbs said.
“I feel like I lost 10 years of my life, even with this loan forgiveness. Was this indentured slavery? It feels like it.”
For borrowers still awaiting decisions, the prospect of forgiveness offers hope for stability. Jennifer Alfonso, a Florida resident with disabilities who is a stay-at-home wife, said relief would be transformative.
“It would greatly affect my life because I wouldn’t have to worry about payments being taken out of my SSDI [Social Security Disability Insurance] check when I barely make enough as it is to live,” she said.
“I filed for a TPD [Total and Permanent Disability Discharge] and have been waiting since February 19 for a decision to be made,” she added, referring to a program that forgives federal student loans for borrowers with total and permanent disabilities.
Alfonso also warned others to carefully vet institutions before enrolling, saying: “Make sure the school you decide to go to is actually ‘accredited’ as I went to what used to be ‘National School of Technology’ and I went to transfer credits to Miami Dade Community College to continue my schooling to become a registered nurse, only to find out the school was not accredited and I would have to start all over again. So I went to school, paid all this money and for what? Nothing at all and [I] don’t think it’s fair … [that] I should have to pay a penny to a school that was not accredited.”
Similarly, Brad Hufeld, a retiree based in Delaware, Ohio, said that student loan forgiveness would affect his life considerably. “I have had my loan for 23 years and my school went out of business and I was never able to go back and graduate,” he said, adding that during that period his mother’s health declined and she died a few years later.
Hufeld went on to advise borrowers to “make sure [of] what you are signing and what happens if your school closes”.
Others nearing retirement say forgiveness could determine whether they can make ends meet. A Kentucky-based resident in her 60s who works at a bottling facility said relief would help her stabilize her finances.
“It will allow me to pay my bills on time. [I] filed Chapter 13 bankruptcy approximately two years ago with constant struggling to make ends meet. I may be able to retire one day. As of now, I will not be able to do so. Any help with student loan forgiveness will be greatly appreciated,” she said.
For a 65-year-old semi-retired truck driver in Texas, forgiveness would primarily improve his credit and ease decades-old debt.
“My student loan is about 30 years old. It’s not a degree, it’s a truck driving certification. It would help my credit and … be a great relief for debt,” he said, adding: “Do your homework before you go head first into something you will regret.”