AI Still Falls Short On Student Loan Forgiveness

Public Service Loan Forgiveness is one of the most sought-after federal student loan forgiveness programs, promising debt cancellation after 120 qualifying payments for borrowers who work in government or nonprofit jobs.

But this program has also been plagued by years of confusion, regulatory changes, and uneven implementation. The whiplash for some borrowers has been intense. With AI growing in popularity, some student loan borrowers are using it to get answers to technical questions.

But can AI actually be trusted to explain a program as complex as PSLF?

To find out, we posed a series of questions to four leading AI platforms (ChatGPT, Google Gemini, Grok, and Perplexity) ranging from the most basic definition of PSLF to more detailed scenarios. While all four tools correctly explained the basics, most stumbled when asked about nuanced issues such as whether the SAVE plan’s administrative forbearance counts toward forgiveness, whether the new Repayment Assistance Plan (RAP) qualifies, and whether a borrower’s loan must be serviced by MOHELA.

The results show that AI may be useful for simple answers but cannot yet replace official resources or expert guidance when it comes to navigating student loan forgiveness.