Borrowers who recently became eligible for student loan forgiveness will not have to pay taxes on discharged loans, the Trump administration has confirmed.

The Department of Education said last week it will again start processing loan forgiveness for eligible borrowers in two different income-driven repayment plans that it had put on pause.

Those who become eligible for loan forgiveness this year will not owe federal taxes on the total amount forgiven, the department said on Oct. 17. 3

The policy applies to borrowers on the Income-Contingent Repayment or Pay as You Earn plans who made qualifying payments for 20 to 25 years.

Borrowers have been spared from paying taxes on forgiven loans by a 2021 provision in former President Joe Biden’s $1.9 trillion stimulus bill.

That protect

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