The Trump administration has agreed to restore federal student loan forgiveness programs, bringing long-awaited relief for millions of borrowers. The decision follows a legal settlement with the American Federation of Teachers (AFT), which accused the administration of blocking access to repayment and forgiveness programs.
Under the agreement filed on Friday, the Department of Education will begin cancelling loans for borrowers enrolled in income-driven repayment (IDR) plans who have met the required number of qualifying payments.
Why the Trump administration changed course
The settlement marks a reversal from earlier this year when the Trump administration temporarily paused forgiveness under certain income-based repayment programs. These…