Key Points:
- Student loan forgiveness resumes under IBR, offering relief after 20–25 years of payments.
- Refunds will be issued for extra payments made during the July pause.
- Some programs like PSLF still face delays for borrowers.
The U.S. Department of Education has resumed student loan forgiveness for certain borrowers enrolled in the Income-Based Repayment (IBR) plan, according to a trade group announcement on Monday.
After being paused since July, the program’s reinstatement means eligible borrowers who have been repaying loans for decades can now receive the relief promised under IBR rules. The plan allows debt cancellation after 20 or 25 years of consistent payments. Notices confirming the continuation of debt forgiveness have begun reaching qualifying borrowers.
Income-Based Repayment Forgiveness Restarts
The Student Loan Servicing Alliance, a trade organization representing federal loan servicers, confirmed that IBR discharges have resumed. Its executive director, Scott Buchanan, said loan servicers are notifying borrowers who qualify for the long-awaited student loan forgiveness. Consumer advocates and student loan advisors also confirmed that many borrowers recently received notices of forgiveness.
The U.S. Department of Education has not yet issued a formal statement, but previously indicated that the temporary pause was necessary to review court-related rulings that affected repayment calculations. Borrowers who continued making payments after becoming eligible for forgiveness are expected to receive refunds for those extra payments.
Why the Pause Happened
In July, the Education Department temporarily halted IBR-related loan discharges while it evaluated how recent judicial decisions impacted the program. The department explained that the ruling involving the SAVE (Saving on a Valuable Education) plan affected how certain repayment periods were counted toward forgiveness.
The SAVE plan had allowed borrowers to include some periods of forbearance or postponed payments toward their student loan forgiveness timeline. With SAVE paused, the department reassessed IBR payment counts to ensure accuracy. During this period, borrowers awaiting discharge were advised that their accounts would be reviewed before loan erasure continued.
Impact on Borrowers and Education Programs
IBR remains one of the few active income-driven repayment options for federal student loan holders. The program has been especially important for long-term borrowers seeking eventual loan cancellation. Education experts noted that the pause caused uncertainty among many educators, public servants, and professionals who had expected their loans to be forgiven this year.
Higher education analyst Mark Kantrowitz explained that IBR is currently the only income-driven plan leading to automatic debt relief for those who meet eligibility criteria. For teachers and public service employees, loan forgiveness can play a major role in supporting career sustainability and access to continued education opportunities.
Continued Challenges in Loan Processing
According to recent court filings, more than 74,000 borrowers are still awaiting decisions on Public Service Loan Forgiveness (PSLF) applications. PSLF offers debt cancellation to individuals who have worked for qualifying nonprofit or government organizations for at least ten years. Some applicants reported delays of six months or longer in receiving updates on their forgiveness status.
While IBR discharges have resumed, many other borrowers continue to await clarity on different forgiveness programs. Education experts have urged continued transparency and communication from loan servicers to help borrowers understand their eligibility and repayment timelines.
Relief Efforts for Long-Term Borrowers
The reinstatement of IBR loan forgiveness provides hope for thousands of students and educators who have carried loan balances for decades. Borrowers who receive discharge notices can expect the relief to process in the coming months.
For many, the continuation of IBR student loan forgiveness marks a step toward financial stability and renewed trust in the student loan repayment system. Education groups have emphasized the importance of maintaining consistent access to income-driven repayment programs to support affordability in higher education.
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