The Trump administration has reached a new agreement with the American Federation of Teachers (AFT) that could unlock long-awaited student loan relief for millions of borrowers.
Announced last week, the agreement allows the Department of Education to resume processing forgiveness for borrowers enrolled in Income-Contingent Repayment (IDR), Pay As You Earn (PAYE) and the Public Service Loan Forgiveness (PSLF) programs — especially those who’ve been chipping away at their loans for more than two decades. These programs will remain in place until 2028, when they’re expected to be phased out under President Trump’s “Big, Beautiful Bill.” (1)
The deal also includes a tax break: borrowers who qualify for…