In recent weeks, a limited group of federal student loan borrowers in the U.S. has received encouraging emails from the Department of Education: their remaining loan balances are being canceled. This development represents a rare moment of debt relief under President Donald Trump’s administration.
According to borrower notifications, this forgiveness is being granted to individuals who have successfully completed the required number of payments under the Income-Based Repayment (IBR) plan. The emails clearly state: “You are now eligible to have some or all of your federal student loan(s) discharged because you have reached the necessary number of payments under your Income-Based Repayment (IBR) Plan.”
Only the IBR plan currently qualifies for cancellation.
Under current policy, only borrowers enrolled in the IBR plan are eligible for this specific type of forgiveness. While student loan holders can switch repayment plans during their loan term, IBR is presently the sole option that offers loan discharge after a predetermined number of payments.
The Trump administration has phased out several other income-driven repayment (IDR) options, including the Income-Contingent Repayment (ICR) plan. This change stems from recent court rulings and legislative adjustments introduced by the administration’s “big beautiful bill.”
Initially introduced in the 1990s, IDR plans were designed to make federal student loans more manageable by capping monthly payments based on discretionary income. These plans typically promise forgiveness after 20 or 25 years of consistent repayment.
Payment requirements depend on when your loan was issued.
The specific number of payments required for IBR forgiveness varies based on your loan’s issuance date. Borrowers who took out loans after July 1, 2014, must complete 240 qualifying payments, which is equivalent to 20 years. For loans issued before that date, the requirement increases to 300 payments, or 25 years.
Some borrowers currently receiving forgiveness may have initially been enrolled in older IDR plans, such as ICR, before switching to IBR. It’s important to note that payments made under previous qualifying IDR plans can still count towards the forgiveness criteria.
Mark Kantrowitz, a prominent higher education expert, advises borrowers who believe they are eligible but haven’t yet received a notification to continue making their payments. “You don’t want to be flagged as late,” he cautioned, adding that “any overpayments should be refunded.”
Government shutdown could cause delays in the forgiveness process.
Forgiveness letters indicate that eligible IBR discharges will be processed over the next few months. Borrowers have until October 21 to opt out of the cancellation if they choose.
However, the ongoing government shutdown could unfortunately lead to delays in these processing times. Carolina Rodriguez, director of the Education Debt Consumer Assistance Program, noted that such delays are expected, especially as the Department of Education grapples with staffing challenges.
The Department of Education has not yet provided an official comment on this current round of student loan cancellations.