Student Loan Cancellation Is Restarting for Some Federal Borrowers

In a move that brings relief to many federal student loan borrowers, the cancellation of loans is set to resume for those enrolled in a specific income-driven repayment plan. This development comes after a prolonged pause that has lasted most of the year, leaving many borrowers uncertain about their financial futures.

The U.S. Department of Education has announced that it will restart loan discharges for borrowers who are enrolled in the income-driven repayment (IDR) plan, which is designed to help borrowers manage their student loan payments based on their income and family size. This plan is a vital lifeline for many who are struggling to make ends meet and are at risk of defaulting on their loans.

According to the Department of Education, borrowers who are enrolled in the IDR plan and have been making qualifying payments may begin to see their loans discharged within a matter of weeks. This move is expected to bring significant relief to thousands of borrowers who have been waiting anxiously for the cancellation of their loans.

The restart of loan cancellations is a welcome news for borrowers who have been facing financial hardships and have been relying on the IDR plan to manage their debt. The plan allows borrowers to make payments that are capped at a percentage of their discretionary income, making it more manageable for them to pay off their loans.

The Department of Education has been working to overhaul the IDR plan and address issues that have plagued the program in the past. The restart of loan cancellations is a significant step towards providing relief to borrowers who have been struggling with their student loan debt.

Borrowers who are enrolled in the IDR plan and are eligible for loan cancellation can expect to receive notification from their loan servicers in the coming weeks. Those who are not currently enrolled in the IDR plan but believe they may be eligible can contact their loan servicers to learn more about the program and how to apply. With the restart of loan cancellations, many borrowers can finally breathe a sigh of relief and look forward to a more stable financial future.