Department of Education Offers Relief for All IDR Plans

The Department of Education is resuming student loan forgiveness under all current income-driven repayment plans.

In a court filing on Friday afternoon, the department confirmed that it will start processing loan discharges under the Income-Based Repayment, Pay As You Earn, and the Income-Contingent Repayment plans.

The Department of Education said it will also ensure that borrowers who reached the qualifications for loan discharge in 2025 will not pay taxes on it.

Earlier this year, the department paused forgiveness under all income-driven repayment plans to comply with a court ruling. That means that borrowers who had met all the eligibility requirements for forgiveness were not able to get their loans discharged for the past three months.

Borrowers under the SAVE plan are still under forbearance. However, the department said borrowers on SAVE who have achieved eligibility for forgiveness can transfer to IBR, PAYE, or ICR before the year ends and will receive tax-free forgiveness.