"The Trump administration has agreed to resume student loan forgiveness for an estimated 2.5 million borrowers who are enrolled in certain federal repayment plans following a lawsuit from the American Federation of Teachers," The Associated Press reports. 

..."An estimated 2.5 million borrowers in IDR plans will be affected by the agreement, and another 70,000 are waiting for forgiveness through the PSLF program.

Even with the agreement in place, mass layoffs at the Education Department could factor into processing times for forgiveness, said Megan Walter, senior policy analyst at the National Association of Student Financial Aid Administrators.

If borrowers continue to make payments while their application is pending forgiveness, that will be refunded to them if they are successful, Walter said. 'But keep really good records,' she said."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 10/21/2025