Education Dept. Reaches Settlement on Student Loan Forgiveness for Income-Driven Repayment Plans

Relief has come for hundreds of thousands of people with federal student loans who are eligible but have not been able to apply for loan forgiveness. This is due to the Trump administration’s challenge to the Biden administration’s wider loan forgiveness program.
The relief comes after a court settlement was reached for those on certain Income-Driven Repayment (IDR) plans.
The American Federation of Teachers (AFT) union sued the Department of Education in March for blocking access to the plan and the benefits, arguing that these were required to be offered to students by law.
In the Oct. 17 agreement, the Department of Education agreed to restore access and continue to process applications, as well as recognize the terms of repayment for the plans in question—including the Income‑Based Repayment (IBR), Income‑Contingent Repayment (ICR), Pay As You Earn (PAYE), and Public Service Loan Forgiveness (PSLF) plans—as long as they exist….