Student Loan Forgiveness
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Student Loan Forgiveness Was Paused Most of 2025—But Thousands Still Received It. Here's How
Investopedia· 2026-02-10 01:00
Core Insights - Federal student loan borrowers experienced significant changes in repayment plans during President Trump's second term, yet approximately 121,000 borrowers received debt forgiveness in 2025 [2][12] - The number of borrowers receiving forgiveness under Trump's administration is lower than under Biden's, but still represents a notable increase compared to historical averages [3][7] Public Service Loan Forgiveness - In 2025, the Department of Education forgave loans for about 117,280 borrowers through the Public Service Loan Forgiveness (PSLF) program, which discharges loans after 10 years of payments for public service workers [5][12] - The PSLF program saw an unprecedented average of 267,500 borrowers' loans forgiven annually during Biden's presidency, totaling nearly 1.07 million [7][14] Income-Based Repayment Plans - The Trump administration forgave approximately 3,570 borrowers' loans through Income-Based Repayment plans in 2025, with a significant pause in forgiveness due to legal challenges [8][10][12] - The Department of Education did not provide publicly available data on the number of borrowers receiving forgiveness through income-driven repayment plans from any administration [11] Changes in Forgiveness Programs - For most of 2025, forgiveness under income-driven repayment plans was paused, with the Department of Education resuming forgiveness in October [10][13] - Prior to Biden's administration, only 50 borrowers had received forgiveness through income-driven repayment plans, highlighting the substantial increase in forgiveness under his tenure [14]
X @Forbes
Forbes· 2026-02-08 18:30
The month of February will be a critical month for certain borrowers pursuing student loan forgiveness and administrative discharges. And hundreds of thousands of borrowers with federal student loans could be impacted. https://t.co/dIyJBW3lXu (Photo: Drew Angerer/Getty Images) https://t.co/HTT5TYaJHs ...
The State of Student Loan Forgiveness as 2025 Ends: Who Got Relief and Who Didn't
Investopedia· 2026-01-02 13:00
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]
X @Forbes
Forbes· 2025-12-17 17:24
Some borrowers who qualify for student loan forgiveness must act within the next two weeks or they could face substantial financial penalties.Here’s a breakdown of what’s happening, and what student loan borrowers should know: https://t.co/iLdRp3UXDS📸: Alex Brandon via Associated Press ...
Make These 4 Key Moves Before Year-End for Tax-Free Student Loan Forgiveness
Investopedia· 2025-12-14 13:00
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]
