New student-loan forgiveness under Trump is coming. Here's what borrowers should know.

"Some student-loan borrowers are finally seeing the light at the end of the tunnel after years of payments. Earlier this month, President Donald Trump's administration began sending emails to some borrowers on income-based repayment plans notifying them that they're eligible to have their loans discharged. IBR plans give borrowers monthly payments based on their incomes, with the promise of forgiveness of any remaining debt after 20 or 25 years. While the Department of Education did not specify how many borrowers are eligible for this round of forgiveness, 2 million borrowers were enrolled in IBR plans in the second quarter of 2025, according to Federal Student Aid data."

""Your loan servicer will notify you if and when your IBR discharge has been processed," the email, reviewed by Business Insider, said. "It may take some time for your loan servicer to process your discharge and for your account to reflect this change. Most borrowers will have their discharge processed within two weeks, but for some borrowers, processing could take more time.""

"Student-loan forgiveness has been rare under the Trump administration, givenits focus on overhauling repayment and shifting away from debt relief efforts. Over the summer, the Department of Education paused IBR processing to update borrowers' payment counts, and it has also been working through a backlog of other repayment plan applications, including those for Public Service Loan Forgiveness."

The Department of Education has begun notifying some income-based repayment (IBR) borrowers that they are eligible for loan discharge. IBR plans set monthly payments based on income and promise forgiveness of remaining debt after 20 or 25 years. About 2 million borrowers were enrolled in IBR plans in the second quarter of 2025. Servicers will notify borrowers when discharges are processed; most discharges are expected within two weeks but some accounts may take longer to update. The Education Department paused IBR processing over the summer to update payment counts and is addressing backlogs, including Public Service Loan Forgiveness. A government shutdown could delay processing.

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