In a landmark agreement, the Trump administration has consented to a court-supervised plan to expedite student loan forgiveness under income-driven repayment programs. This decision resolves months of legal disputes between the administration and the American Federation of Teachers (AFT). The agreement, part of the AFT v. U.S. Department of Education case, ensures that borrowers will not face unexpected tax bills next year due to bureaucratic delays.

The agreement mandates the U.S. Department of Education to cancel student debt for eligible borrowers enrolled in programs like Income-Driven Repayment (IDR), Income-Contingent Repayment, Pay As You Earn, and Public Service Loan Forgiveness (PSLF). Borrowers who make payments after becoming eligible for cancellation will be reimbursed. Ad

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