Huge win for borrowers as US Education Department resumes student loan forgiveness for millions: Here's what to know

For millions of Americans carrying the weight of student debt, a significant development has offered both relief and reassurance. More borrowers enrolled in income-driven repayment plans, whose federal loan cancellations had been temporarily halted, may soon see their balances reduced, without facing unexpected tax bills. The news comes after an agreement reached last Friday between the United States Department of Education and the American Federation of Teachers, which had urged the courts last month to compel the department to process loan discharges for eligible borrowers, The New York Times reports. Income-driven repayment programs, commonly referred to as IDR plans, tie monthly student loan payments to a borrower’s income and household size. After 20 to 25 years of qualifying