The Trump administration has agreed to reinstate student loan forgiveness for roughly 2.5 million borrowers enrolled in specific federal repayment plans, following a lawsuit brought by the American Federation of Teachers (AFT).

Under the settlement reached on Friday between the teachers’ union and the administration, the U.S. Department of Education will resume processing loan forgiveness for those eligible in income-based repayment schemes that reduce monthly payments according to a borrower’s earnings. The government had previously halted forgiveness under those plans, citing its interpretation of an earlier court ruling.

The agreement also ensures that borrowers will not face hefty tax bills on debt scheduled to be forgiven this year.

“We took on the Trump administration when it refu

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