More than 21,000 student loan borrowers have just had their federal student loans forgiven, according to the U.S. Department of Education—signaling that long-stalled relief under income-driven repayment plans is moving forward again. But even as that relief resumes, major changes are on the horizon that could reshape how millions repay their loans.
New data filed in federal court shows the department is following through on its promise to restart forgiveness processing for eligible borrowers enrolled in income-driven repayment plans. These plans base monthly payments on income and family size, with any remaining balance forgiven after 20 to 25 years, depending on the program. The Trump administration had previously paused all discharges tied to these plans, citing legal challenges surrounding the future of the SAVE plan. That pause sparked lawsuits, ultimately forcing the department to resume relief for qualifying borrowers—though forgiveness under the SAVE plan itself remains on hold.