United States (Brussels Morning Newspaper) – The US Department of Education has resumed the popular income-based student loan forgiveness programme, targeting borrowers who meet specific payment and eligibility criteria. This renewed initiative, under the Trump administration’s policies, allows an estimated 2 million borrowers to qualify for debt cancellation after 20 to 25 years of payments.
US announces new wave of student loan forgiveness for qualifying borrowers
The Department of Education has officially restarted the Income-Based Repayment (IBR) program after months of legal and political uncertainty, enabling eligible borrowers to have their remaining student loans forgiven. This revival comes through the Department’s revised approach aligned with recent legislation, notably the GENI Act, which regulates crypto, digital assets, and student loan relief programs.
In an instruction email dated October 15, 2025, the Department notified federal loan servicers that the IBR plan, paused since July 2025 due to court injunctions and system updates, will resume processing discharges by November 2025. Borrowers already enrolled in the programme will now be able to benefit from loan forgiveness after meeting the specific payment thresholds.
Who qualifies for student loan forgiveness under the Trump-era policy
According to reports, eligibility for the current forgiveness initiative is primarily for borrowers enrolled in the Income-Based Repayment (IBR) plan, which adjusts monthly payments according to income and family size. To qualify, borrowers must meet the following criteria:
To qualify, you must be enrolled in the IBR plan and have made at least 240 payments if your loans were issued after July 1, 2014, or 300 payments for loans issued before this date, which equates to roughly 20 or 25 years of consistent payments. Additionally, you should not have previously opted out of the program before its recent resumption.
This applies to about 2 million Americans currently enrolled in the plan as of mid-2025, with many waiting anxiously for the forgiveness process to restart.
The legal and political backdrop
The programme’s revival follows legal battles, notably a lawsuit filed by the American Federation of Teachers (AFT) in July 2025, arguing that delaying or disallowing student loan forgiveness constituted a breach of borrower rights. The Biden administration’s earlier pause was challenged by advocacy groups and university unions, leading to courts ordering the resumption of relief efforts.
The Biden-Harris administration, in conjunction with recent legislation passed under the Trump-supporting Congress, aims to resolve long-standing issues surrounding the student debt crisis. These efforts are further complicated by ongoing government shutdown threats, which temporarily halted some discharges and legal proceedings related to student loans.
Implications for borrowers and policy
The resumption offers vital relief for many borrowers, especially public servants, teachers, nurses, and other essential workers. The programme’s framework, highlighted in legislation and recent regulatory changes, provides that loans are forgiven after 20 or 25 years of consistent payments depending on the initial loan date and enrollment date.
Senator Elizabeth Warren criticised the move, claiming that the rollback reflects the influence of wealthy donors close to President Trump and undermines the student debt relief process. Warren warned that the rapid policy reversals and court injunctions mark a troubling shift towards deregulation and favour the wealthy.
How the process works for enrolled borrowers
For borrowers who are already enrolled in the IBR plan, the Department of Education will automatically resume processing loan discharges. Borrowers may opt out of the forgiveness by contacting their loan servicer before October 21, 2025, to retain their remaining debt obligations.
Following the deadline, the Department will send discharge notices directly to loan servicers, who will then manage the flow of debt forgiveness. It generally takes two to four weeks for the process to be reflected in borrower accounts, though some cases may take longer due to administrative delays.
Future outlook and controversy
The reactivation of the student loan forgiveness program faces ongoing political debates. Critics argue that the process is fraught with legal delays and potential for future political interference, while supporters believe it provides much-needed relief for millions burdened by student debt.
Further, the government’s current legal battles, including lawsuits and injunctions, could impact the full implementation of the programme, raising questions about its stability and long-term effectiveness.
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