Forgiveness emails are being sent out again
Over the past week, many student loan borrowers began receiving good news in their inboxes. The Department of Education has started sending emails to people on income-based repayment (IBR) plans, letting them know they now qualify for loan forgiveness.
The email, which has the subject line “You’re eligible to have your student loan(s) discharged,” says that the Department is working with loan servicers to process the relief. Borrowers can expect their discharge information to be sent to their servicers after October 21, and most will see their loans forgiven within a few weeks after that.
This comes as a major relief for borrowers who have been waiting for months, as the IBR discharge process was paused back in July so the Department could review and confirm payment counts.
What is income-based repayment (IBR)?
The income-based repayment program is designed to make student loan payments more manageable by tying them to a person’s income. Under IBR, borrowers make smaller monthly payments based on how much they earn and their family size.
The best part is that after 20 or 25 years of payments — depending on when the borrower first took out their loans — any remaining balance is forgiven.
According to Federal Student Aid data, around 2 million borrowers are currently enrolled in IBR plans and could benefit from this round of forgiveness.
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How to know if you qualify
If you’ve been on an income-based repayment plan for many years, check your email — especially the one linked to your Federal Student Aid account. The Department of Education is contacting eligible borrowers directly.
If you received an email saying you’re eligible, you don’t need to do anything to apply. The Department and your loan servicer will handle everything. You’ll get another notification once your loans have officially been discharged.
However, processing times may vary. The Department said that most borrowers will see the change within two weeks, but it could take longer for some accounts to update.
Borrowers can opt out — but must act by October 21
Borrowers who don’t want to have their loans forgiven must contact their loan servicer before October 21 to opt out.
One possible reason to opt out is state tax liability. While federal law currently makes forgiven student loans tax-free through the end of 2025, some states might still treat forgiveness as taxable income.
If you choose to opt out, you’ll need to keep making regular payments on your loans.
Why the October 21 deadline matters
There’s an extra layer of urgency this year. A rule from the American Rescue Plan Act of 2021 made loan forgiveness tax-free, but that rule expires after December 31, 2025.
That means anyone receiving forgiveness after January 1, 2026, could owe thousands of dollars in federal taxes on their forgiven balance. For many borrowers, that’s a strong reason to make sure their relief is processed before the end of 2025.
The American Federation of Teachers, which represents many public service employees, even filed a complaint in September urging the Department to cancel eligible loans before the tax-free benefit runs out.
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What’s next for student loans
While this round of forgiveness moves forward, the Trump administration is planning changes to future repayment programs.
Under President Donald Trump’s recent “big beautiful” spending law, the Department of Education began negotiating new repayment terms. The plan would replace existing income-driven repayment options with two simpler but less generous plans.
At the same time, the Department is expanding its ombudsman’s office to help borrowers understand repayment options. Officials say they want to shift the focus from widespread debt forgiveness to better loan servicing and education.
“Unlike the previous administration’s focus on loan forgiveness,” said James Bergeron, acting head of Federal Student Aid, “we are working to make real improvements in how loans are serviced for both borrowers and taxpayers.”
For now, though, the message for millions of borrowers is clear — forgiveness is back, and if you qualify, make sure your loan servicer has everything they need before the October 21 deadline.
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