Core Insights - The Department of Education has resumed student loan forgiveness for most income-driven repayment plans, but there is no confirmed date for when borrowers will receive their forgiveness [2] - Borrowers eligible for forgiveness in 2025 will not have to pay federal taxes on their discharged loans, provided they take necessary steps before the end of the year [3][4] Group 1: Loan Forgiveness Process - The Department of Education is processing tax-free loan discharges for borrowers under Income-Based Repayment, Pay As You Earn, and Income-Contingent Repayment plans, while the Saving for a Valuable Education plan remains blocked due to lawsuits [5] - Borrowers under the SAVE plan are currently in forbearance, and payments made during this period do not count toward forgiveness; however, they can transfer to eligible plans by December 31, 2025, to qualify for tax-free discharge [6] Group 2: Payment Requirements - Borrowers must have made 240 or 300 monthly payments, depending on their repayment plan, to qualify for tax-free forgiveness; they can verify their payment count with their loan servicer [7][10] - The number of required payments varies by plan: 300 payments for IBR and ICR plans, and 240 payments for PAYE [10] Group 3: Documentation and State Taxes - Borrowers should keep any confirmation from their loan servicer regarding tax-free forgiveness and verify their qualifying payments with their servicer [11][12] - While federal taxes on forgiveness are waived, some states may still impose taxes on discharged loans, including Arkansas, Indiana, Mississippi, North Carolina, and Wisconsin [13][14][15][16][17]

The Department of Education has resumed processing student loan forgiveness for borrowers in income-driven repayment plans, following a brief hiatus. Here's the latest. https://t.co/qDZLbxsrKu ...