"Over the past week, student-loan borrowers on income-based repayment plans have started to receive emails from the Department of Education notifying them that they've met the payment threshold and qualify for debt cancellation. The emails, multiple of which were reviewed by Business Insider, had the subject line: "You're eligible to have your student loan(s) discharged." It said that the department is working with the borrower's servicer to process the relief "over the next several months,""
"Income-based repayment plans give borrowers monthly payments intended to be affordable based on income, with the promise of loan forgiveness after 20 or 25 years. As of the second quarter of 2025, 2 million borrowers were enrolled in IBR, per Federal Student Aid data. The department has paused relief through IBR since July, saying in a Federal Student Aid notice that the department needed time to ensure payment counts are accurate."
Education Department resumed processing of income-based repayment (IBR) loan forgiveness after pausing to verify payment counts. Eligible borrowers received emails stating they met the payment threshold and qualify for discharge, and that servicers will process relief over the next several months with discharge information sent after October 21. IBR plans set payments based on income and promise forgiveness after 20 or 25 years; about 2 million borrowers were enrolled in IBR as of Q2 2025. Servicers may take time to reflect discharges, with most processed within two weeks. Borrowers may opt out by contacting their loan servicer by October 21.
Read at Business Insider
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