Trump’s latest student loan forgiveness push: Here’s who qualifies
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In recent weeks, some federal student loan borrowers have received welcome news: The U.S. Department of Education will soon cancel their remaining debts.
“Because you have reached the required number of payments under your Income-Based Repayment, you now have the right to have some or all of your federal student loan canceled (IBR) Plan,” reads an email sent to a debtor.
Consumer advocates say the notices are notable because student loan forgiveness has become rare under the Trump administration.
Since President Donald Trump took office, the U.S. Department of Education has halted aid under various programs in response to court decisions and recent legislation. Meanwhile, tens of thousands of borrowers find themselves stuck in a backlog of repossession applications. Public Service Loan AmnestyAn initiative that guarantees that public servants’ debts will be erased after ten years.
The Ministry of Education did not respond to a request for comment.
Here’s what you need to know about who qualifies for the latest round of loan cancellation.
Borrowers must be enrolled in the IBR plan
While many student loan borrowers change repayment plans over the life of their loan, the only plan currently eligible for debt cancellation after a certain period of time is an Income-Based Repayment plan, or IBR.
This is due to recent court decisions and Trump’s “Big beautiful bill that phases out several existing income-based repayment plans, or IDRs.
Congress creates first IDR plans 1990s Making bills more affordable for student loan borrowers. Historically, plans limit people’s monthly payments to a portion of their discretionary income and cancel any remaining debt after a certain period of time, usually 20 years or 25 years.
Borrowers receiving these latest notices have likely transferred to IBR from an IDR plan that no longer results in debt forgiveness, such as an Income Contingent Repayment plan, or ICR.
Borrowers may need up to 300 qualifying payments
To qualify for IBR forgiveness, a borrower must be in repayment for 20 years or 25 years, depending on the age of their loans.
Available since 2009, IBR offers debt cancellation after 240 payments to borrowers after July 1, 2014. For loans taken out before that date, borrowers were required to make 300 payments before the Department of Education would clear their balance.
If you’ve made repayments long enough to qualify for aid but still haven’t received a loan forgiveness email, you should keep making payments, said higher education expert Mark Kantrowitz. You don’t want to be marked as late and any overpayments should be refunded to you, he said.
Borrowers who change repayment plans over the years may find that some payments in other plans may qualify for IBR forgiveness. Experts say as long as your payments are made according to an IDR schedule, that period should be included in the forgiveness timeline when you sign up for IBR.
Government shutdown could mean delay in aid
Eligible borrowers’ IBR loan payments will be processed “within the next few months” and they have until Oct. 21 to waive the aid, according to Department of Education forgiveness emails.
Carolina Rodriguez, director of the Education Debt Consumer Assistance Program, said the ongoing government shutdown could delay loan cancellations.
“However, given the current backlog, exacerbated by previous staff reductions at the Department of Education, many borrowers may feel somewhat desensitized to these delays,” Rodriguez said.
Have you received an email from the Department of Education stating that you are eligible for IBR amnesty? If you would like to share your experience for a future article, please email me at annie.nova@nbcuni.com..
