"We took on the Trump administration when it refused to follow the law and denied borrowers the relief they were owed," AFT President Randi Weingarten said in a statement. "Our agreement means that those borrowers stuck in limbo can either get immediate relief or finally see a light at the end of the tunnel."
"The Administration looks forward to continuing its work to simplify the student loan repayment process through implementation of the President's One Big Beautiful Bill Act,"
"According to the deal, the Trump administration must cancel student debt for eligible borrowers enrolled in the following plans: income-driven repayment (IDR) plans, income-contingent repayment plans, Pay As You Earn (PAYE), and Public Service Loan Forgiveness (PSLF) plans."
The Trump administration agreed to resume student loan forgiveness for an estimated 2.5 million borrowers enrolled in specified federal repayment plans after a lawsuit by the American Federation of Teachers. The Education Department will process forgiveness for eligible borrowers in income-driven repayment, income-contingent repayment, Pay As You Earn, and Public Service Loan Forgiveness programs. Borrowers who paid beyond amounts needed for forgiveness will be reimbursed. The agreement also protects borrowers from large tax bills on debt forgiven this year. The Education Department will review forgiveness programs to identify those unaffected by prior court rulings and continue IDR and PSLF buyback processing.
#student-loan-forgiveness #income-driven-repayment #public-service-loan-forgiveness #department-of-education
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