EducationPolicy

Education Department Reaches Agreement to Resume Student Loan Forgiveness for IDR Borrowers

The Education Department has agreed to resume processing student loan cancellations for borrowers in income-driven repayment plans following legal negotiations. The agreement ensures eligible borrowers won’t face federal tax bills on forgiven debt through 2025.

Loan Forgiveness Resumes for Income-Driven Repayment Participants

The U.S. Education Department has reached an agreement with the American Federation of Teachers to resume processing student loan cancellations for borrowers enrolled in income-driven repayment plans, according to court documents filed Friday. The resolution comes after temporary halts to loan discharges earlier this year that threatened to leave borrowers with significant tax liabilities.