The Trump administration has agreed to resume and expedite student loan forgiveness for approximately 2.5 million borrowers enrolled in certain federal repayment plans, following a lawsuit filed by the American Federation of Teachers (AFT).

This agreement was reached to resolve legal challenges about the administration’s previous halt on loan forgiveness under income-driven repayment programs caused by its interpretation of a different court ruling.

The big picture: The repayment plans affected include income-driven repayment (IDR), income-contingent repayment plans, Pay As You Earn (PAYE), and the Public Service Loan Forgiveness (PSLF) program. • Borrowers who qualify for forgiveness under these plans will have their remaining student loan debt canceled by the Department of Education.

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