Core Insights - Many federal student loan borrowers are experiencing challenges in accessing forgiveness due to ongoing court cases and changes in the student loan system, but the Department of Education has resumed several delayed forgiveness programs as the new year approaches [1][4] Group 1: Forgiveness Programs - The Biden administration approved billions in forgiveness for borrowers through various programs, including income-based repayment plans, Public Service Loan Forgiveness (PSLF), and borrower defense, before leaving office in January 2025 [2] - The Department of Education paused processing forgiveness for income-driven repayment plans in mid-2025 due to a court ruling, but has since announced the resumption of forgiveness under Income-Based Repayment, Income-Contingent Repayment, and Pay As You Earn plans [6][7] - Between November 1 and November 30, the Department approved 170 loan discharges through the Income-Based Repayment Plan, with thousands of applications being processed by loan servicers [8] Group 2: Public Service Loan Forgiveness - The PSLF program allows public service workers to receive forgiveness after 10 years of payments, and a "buy-back" option is available for those who have reached this milestone but skipped months due to deferment or forbearance [11] - Applications for PSLF buyback have surged, with 280 loan discharges granted in November, while 80,210 applications remain pending [12] - A new rule from the Trump Administration will restrict PSLF access for workers if their organization is deemed to engage in illegal activities, set to take effect in July 2026 [13]

Core Points - The Trump administration is facing a backlog in processing student-loan forgiveness applications, particularly for income-driven repayment plans and the Public Service Loan Forgiveness program [1][3] - The backlog was exacerbated by legal challenges against the Biden administration's SAVE plan, leading to a significant number of pending applications [2][3] - As of July 31, 1.3 million income-driven repayment plans and 72,730 PSLF requests are pending, prompting advocacy groups to push for quicker processing [3][4] - The American Federation of Teachers has amended a complaint into a class action, urging the Department of Education to cancel loans for borrowers who have met their payment thresholds [3][4] - Loan forgiveness will become taxable again starting January 1, 2026, which could result in significant tax liabilities for borrowers if their applications are not processed by the end of the year [5][6] - Changes to repayment plans under Trump's spending law may lead to higher monthly payments and new taxes for borrowers, complicating the situation further [6][7] - Advocates are calling for expedited processing of applications to prevent borrowers from facing new tax burdens on their loan forgiveness [8]

If you have federal student loans, financial aid, or plan to at any point in the future, you might want to pay attention. Here are three changes coming to federal student loans first. Number one, if you're facing economic hardship or job loss, you will not be able to apply for forbbearance or deferment of your loans starting in July 1st, 2026.Number two, parents will no longer qualify for public service loan forgiveness, and they will not be eligible for the new repayment assistance plan either. As a result ...