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International Business Times UK
International Business Times UK
World
Justin Price

Millions of Borrowers Regain Access to Student Loan Forgiveness After Trump Officials Reverse Course

The Trump administration has agreed to resume student loan forgiveness under Income-Contingent, Pay As You Earn and Income-Based programs after pausing processing earlier this year. (Credit: AFP News)

In a major policy pivot set to benefit millions of US student loan borrowers, the Department of Education has restarted forgiveness processing for income-driven repayment (IDR) plans, including the Income‑Contingent Repayment (ICR) and Pay As You Earn (PAYE) programmes, thanks to a settlement with the American Federation of Teachers (AFT) filed on 17 October 2025.

Borrowers who reached eligibility in 2025 will now have their discharge date back-dated and protected from tax liability under the American Rescue Plan Act tax-free forgiveness window.

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