The Trump administration on Friday announced a major policy shift, saying it will cancel student debt for millions of borrowers under federal loan forgiveness plans — reopening a pathway that the government had previously blocked.

This shift comes as part of an agreement with the American Federation of Teachers (AFT), under which the White House will start processing student loan forgiveness for eligible borrowers, New York Post reported.

These programmes calculate monthly payments based on a borrower's salary, and typically cancel any remaining debt after 20 or 25 years. Also Read | Trump to sell student loans to private market? What it means for borrowers

The administration had earlier paused student loan forgiveness under these income-driven repayment plans, citing a court ord

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