The Department of Education has started sending emails to IBR borrowers, notifying them that they qualify for loan discharge. A new financial chapter begins!
Loan discharge will begin processing after October 21. Most borrowers will see relief within two weeks, though some may experience delays.
Borrowers who don’t want the relief must opt out by October 21. Some may choose this to avoid state tax liability—but payments will continue.
The tax-free forgiveness provision ends January 1, 2026. Getting relief before then could save borrowers thousands in taxes.
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The Trump administration is negotiating new repayment plans to replace existing IBR options with two less generous alternatives.