What student loan borrowers need to know, as forgiveness resumes for two repayment plans

Millions of borrowers once again have access to student loan forgiveness — but they may need to take action to ensure they qualify.

The U.S. Department of Education will resume cancelling the debt of eligible borrowers enrolled in the Income Contingent Repayment plan, or ICR, and the Pay as You Earn plan, or PAYE, according to an agreement reached by the American Federation of Teachers and the Trump administration.

Earlier this year, the department had stopped cancelling the debt of borrowers in those two plans, citing a court order.

Some 2.5 million borrowers are enrolled in either ICR or PAYE, according to an estimate by higher education expert Mark Kantrowitz. The agreement may allow more of those borrowers to qualify for forgiveness. But it’s a limited window.

President Donald Trump’s “big beautiful bill” will phase out ICR and PAYE as of July 1, 2028. The Education Department has only agreed to resume the relief while ICR and PAYE remain in effect.