Education Dept. to Resume Student Loan Forgiveness for Some

"The Education Department last week quietly restarted student loan forgiveness for some borrowers on an income-based repayment (IBR) plan, The Washington Post reported Saturday. The process had been on hold since July due to legal challenges. IBR borrowers who have made on-time payments for 25 years received emails from the department saying their balances would be forgiven, unless they opt out by Oct. 21. Otherwise, most discharges will be processed within two weeks of that date, the letter said."

"Of course, the government shutdown may delay processing of those loans; nearly 90 percent of the Education Department has been furloughed. And eligible borrowers are in a hurry: While the 2021 American Rescue Plan says that canceled student loans cannot be taxed, that provision is set to expire Dec. 31, meaning if things don't move quickly, some students could be on the hook for paying taxes. According to the Post, about two million people are enrolled in the IBR plan, though not all of them have paid enough yet to earn forgiveness."

The Education Department restarted student loan forgiveness for certain borrowers enrolled in income-based repayment (IBR) who have made 25 years of on-time payments. Eligible borrowers received emails saying balances would be forgiven unless they opt out by Oct. 21, with most discharges to be processed within two weeks after that date. Student loan servicers were notified about the impending cancellations. Processing may be delayed because nearly 90 percent of the Education Department has been furloughed during the government shutdown. The 2021 American Rescue Plan tax exclusion for canceled student loans expires Dec. 31, and not all enrolled borrowers have yet qualified for forgiveness.

Read at Inside Higher Ed | Higher Education News, Events and Jobs