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flag The U.S. resumes student loan forgiveness for income-driven plan borrowers, avoiding tax on canceled debt, after a deal with the AFT.

flag The U.S. Department of Education has resumed student loan forgiveness for borrowers in income-driven repayment plans after reaching an agreement with the American Federation of Teachers, halting a pause caused by legal challenges. flag The deal ensures eligible borrowers can continue receiving debt relief without facing federal taxes on canceled loans, as the temporary tax exclusion expires at year-end. flag The department will process cancellations for plans like IBR, PAYE, and ICR, and address past payments and PSLF buyback applications, restoring access to key federal relief programs.

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