White House agrees to resume student loan forgiveness for millions under income-driven plans. See who qualifies, tax protection, and how to check eligibility.
The White House on Oct. 21, 2025, agreed to resume and speed up student loan forgiveness for millions of federal borrowers through income-driven repayment (IDR) pathways and Public Service Loan Forgiveness (PSLF) adjustments, following a settlement with the American Federation of Teachers. This move restores processing for borrowers enrolled in IBR and PAYE-style plans and requires the Education Department to process “buyback” and forgiveness applications more quickly.
Crucially, borrowers whose loans are discharged on or before Dec. 31, 2025, will not receive IRS forms classifying the forgiven balances as taxable income — shielding many from a potential tax bill tied to canceled debt. The settlement also directs retroactive payment counting and reimbursement for overpayments for eligible borrowers. These elements answer the most searched queries now: “student loan forgiveness 2025 eligibility,” “will forgiven loans be taxed 2025,” and “how to check if my student loan will be forgiven.”
Practical steps for borrowers: log in to StudentAid.gov to review account status, submit or refile IDR/PSLF paperwork, and monitor official monthly backlog reports published by the Department of Education. Lenders and servicers will publish targeted notices as applications are processed. Policy experts note the agreement is court-supervised and still subject to implementation timelines, so affected borrowers should watch both federal portals and lender messages for confirmation.
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