The Trump administration has resumed forgiving student loan debt for some borrowers enrolled in the Income-Based Repayment (IBR) program, which had been partially paused since July. Borrowers who have been in repayment for decades and qualify for debt cancellation under IBR are reportedly receiving notices that they will soon have their loans discharged. Scott Buchanan, executive director of the Student Loan Servicing Alliance, confirmed that IBR discharges have restarted. Consumer advocates also said they have heard from borrowers recently approved for relief.
The Department of Education paused IBR forgiveness over the summer while addressing court rulings affecting the Biden-era SAVE plan, which had allowed certain periods of paused payments to count toward forgiveness. The pause left many long-term borrowers frustrated, as IBR remains one of the few income-driven repayment options leading to debt cancellation. Advocates note that the delay also played a central role in a lawsuit filed by the American Federation of Teachers against the Education Department, alleging borrowers’ rights were being denied. Despite the resumption of some IBR discharges, tens of thousands of borrowers, including those eligible for Public Service Loan Forgiveness, are still awaiting debt cancellation, with a backlog of more than 74,000 pending cases as of late August.
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