Trump administration reverses course: 2.5 million borrowers set to receive student loan forgiveness, ending months of limbo
The Trump administration has agreed to resume student loan forgiveness for roughly 2.5 million borrowers enrolled in income-driven repayment plans, following a lawsuit by the American Federation of Teachers (AFT). The settlement restores programs like ICR, PAYE, and PSLF, ensures reimbursements for excess payments, shields 2025 forgiveness from taxes, and signals renewed compliance with federal law.
The Trump administration has agreed to resume student loan forgiveness for roughly 2.5 million borrowers enrolled in income-driven repayment plans, following a lawsuit by the American Federation of Teachers (AFT). The settlement restores programs like ICR, PAYE, and PSLF, ensures reimbursements for excess payments, shields 2025 forgiveness from taxes, and signals renewed compliance with federal law.
