"On October 17, President Donald Trump's Department of Education reached an agreement with the American Federation of Teachers to process more student-loan forgiveness applications for borrowers on income-driven repayment plans. Specifically, the agreement said that the department will continue processing forgiveness for borrowers who reached the payment threshold on income-based repayment plans, the original income-contingent repayment plan, and the Pay As You Earn plan as long as the plans remain in effect."
"The Department of Education agreed to allow borrowers to report the date theybecome eligible to have their loans discharged as the effective date of their loan discharge, rather than when the debt is formally wiped out. This means that if a borrower reaches their eligible number of payments in November but does not receive relief until January, they would not face new taxes."
On October 17, the Department of Education reached an agreement with the American Federation of Teachers to process more student-loan forgiveness applications for borrowers on income-driven repayment plans. The department will continue processing forgiveness for borrowers who reached payment thresholds on income-based repayment, the original income-contingent plan, and Pay As You Earn while those plans remain in effect. The department also will continue processing Public Service Loan Forgiveness buybacks and reimburse payments made after the qualifying final payment. A 2021 American Rescue Plan provision makes forgiveness tax-free through 2025; using eligibility dates for discharge avoids potential 2026 tax bills.
Read at Business Insider
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