4 Ways to Get Aidvantage Student Loan Forgiveness

Aidvantage is a federal student loan servicer that’s designated by the Department of Education. As a federal loan borrower, you might be working with the company while paying off your student loan. 

If Aidvantage is your servicer and you’re facing financial difficulty in repaying your federal student loans, there’s help. Aidvantage can discuss your repayment options, process requests for deferment or forbearance, or confirm whether you qualify for Aidvantage student loan forgiveness options. 

Aidvantage and its role in student loans

Aidvantage, working under Maximus Education, manages repayment for 13 million student loan borrowers making it one of the leading federal loan servicers. 

When Navient, a former federal loan servicer, exited the loan servicing business, Aidvantage received the loan accounts that Navient previously managed. This addition gave Aidvantage a more robust portfolio of student loan borrowers and accounts to manage. 

Is Aidvantage a good loan servicer?

Most loan servicers don’t have a positive reputation, and Aidvantage is no different. The shaky restart of student loan payments cemented this sentiment, as servicers’ lack of clarity led to more confusion and frustration for borrowers. 

In our 2024 Student Loan Planner Reader Survey, respondents had major complaints about their servicer experience. For example, some borrowers had their monthly payments refunded or rejected which resulted in accruing interest; others got incorrect information about the SAVE plan. 

As of this writing, Aidvantage has 2,343 complaints on the Consumer Financial Protection Bureau (CFPB) site. Many of the sentiments echo those in our survey. Grievances range from how Aidvantage manages borrowers’ loan payments to lack of information and poor customer service. 

Aidvantage loan forgiveness programs for federal loans

If you’re looking for Aidvantage student loan forgiveness options, you must qualify and meet the eligibility requirements for one of the following federal programs. The loan servicer doesn’t offer any unique forgiveness options for its borrowers but can walk you through the forgiveness options. 

1. Public Service Loan Forgiveness

The Public Service Loan Forgiveness Program (PSLF) offers the fastest route to loan cancellation. In exchange for only 10 years of service, public service workers in the nonprofit or government sector can get their federal loans forgiven. The biggest benefit, aside from the short timeline, is that the debt relief is tax-free. Eligibility requirements for PSLF include:

• Working full-time at an eligible employer (such as a nonprofit or government agency). 
• Having Direct Loans (other federal loan borrowers can use a Direct Consolidation Loan to qualify). 
• Enrolling in an income-driven repayment (IDR) plan.
• Completing 120 qualifying monthly payments under an eligible plan.

If you work toward Public Service Loan Forgiveness, you’ll want to verify your employment with the PSLF help tool. As part of an IDR plan, you must recertify your income and family size every year. 

2. Income-driven repayment forgiveness

If you’re not a public service worker, you’re not out of luck. You just might have to wait much longer for loan forgiveness. There are currently four IDR plan options:

• Saving on a Valuable Education (SAVE).
• Pay As You Earn (PAYE).
• Income-Based Repayment (IBR).
• Income-Contingent Repayment (ICR).

Your monthly payment can change each year, depending on your recertification information and plan eligibility. Generally, under IDR your monthly payment is between 5% and 20% of your discretionary income and terms are either 20 or 25 years, depending on your plan. 

If you have a loan balance left over at the end of the repayment term, you can get Aidvantage student loan forgiveness. 

Although this is one option to wipe out your student debt, it isn’t tax-free — you might be responsible for paying taxes on the forgiven balance. Current legislation makes IDR forgiveness tax-free until 2025. After that, the tax liability for IDR loan forgiveness is uncertain, so prepare for this possibility. 

3. Teacher Loan Forgiveness

Eligible teachers can get student loan forgiveness of $5,000 or $17,500 through the Teacher Loan Forgiveness program. To qualify for this program, you must teach full-time at a low-income school for five consecutive years. 

The highest forgiveness amount of $17,500 is only available to “highly qualified teachers” who teach specific subjects, including:

• Math. 
• Science.
• Special education. 

Teachers who don’t meet those requirements are eligible for $5,000. If you qualify for Teacher Loan Forgiveness, consider this option carefully. The five years of service that count toward the Teacher Loan Forgiveness program don’t count toward the Public Service Loan Forgiveness Program. PSLF could eliminate your entire remaining balance after 10 years which could be far more impactful. 

4. Alternative forgiveness options

You might also be eligible for forgiveness through other paths. Here are just a few other loan cancellation programs designed for unique circumstances.

• Total and Permanent Disability Discharge (TPD). If you meet the definition of being totally and permanently disabled by a medical professional, the Social Security Administration (SSA), or the Department of Veteran Affairs (VA), you might qualify for loan forgiveness through the TPD program. 
• Closed school discharge. If your school closes while you’re enrolled as a student or closes shortly after you withdraw, you might qualify for closed school loan discharge. 
• Death discharge. Your federal loans won’t live on after your death, as they are discharged. Parent PLUS Loan borrowers who borrowed a loan for a child who passed away are also eligible for loan discharge. 

Other student loan forgiveness programs to explore

If you don’t qualify for Aidvantage student loan forgiveness through one of the federal programs mentioned above, you can explore other avenues. Two options to consider are state- and profession-based forgiveness programs. 

Some states offer various loan forgiveness programs for their residents. There are also many profession-based forgiveness options, typically in healthcare.

Student loan refinancing is another route to consider. Although it’s not forgiveness, it might help lower your loan costs and expedite your repayment timeline. When refinancing student loans, secure a lower rate than you currently have. The new refinance loan pays off your current loans, and you’ll repay the new refinanced loan, ideally at better terms. 

The downside is that refinancing eliminates any potential federal benefits. Your federal loans are paid off and you’re left with a privately refinanced student loan. This process results in losing access to loan forgiveness and income-driven repayment options. Evaluate the downsides first, and determine whether the benefits of refinancing are worth it for you. 

If you’re unclear about which program to pursue or the best way to tackle your student loan debt, get support from an expert. Student Loan Planner creates a personalized student loan plan for you based on your individual circumstances and needs. Ditch the confusion and gain clarity by booking a session with a knowledgeable Student Loan Planner consultant today.