How to check if you’re eligible as Trump announces plans to cancel student debt for millions of borrowers
Millions of people are once again eligible for student loan forgiveness in America.
Earlier this year, the American Federation of Teachers (AFT) sued the White House after the Department of Education stopped processing applications for affordable repayment programs for student loans. Some of these programs included student loan forgiveness.
The AFT, which represents almost two million union members, argued at the time that the White House had violated federal law. The blocks by the White House left people with just one plan to choose, known as the Income-Based Repayment plan, or IBR.
Condemning the move, Randi Weingarten, president of the AFT, said at the time (via The Guardian): "By effectively freezing the nation’s student loan system, the new administration seems intent on making life harder for working people, including for millions of borrowers who have taken on student debt so they can go to college.
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"The former president tried to fix the system for 45 million Americans, but the new president is breaking it again."
Since then, the AFT has been in talks with the Department of Education, and on Friday (October 17), the two parties reached an agreement.
As part of the agreement, the Trump administration said that, as part of the original Income-Contingent Repayment (ICR) plan and the Pay as You Earn (PAYE) plan, it will once again process student loan forgiveness for those eligible under either program.
More than 2.5 million borrowers are said to be in either ICR or PAYE, CNBC reports.
However, as part of the president's 'big, beautiful bill', both ICR and PAYE will be phased out as of July 2028.
In the meantime, you can check if you're eligible for student loan forgiveness via the Federal Student Aid website.
It explains: "In certain situations, you can have your federal student loans forgiven, canceled, or discharged. That means you won’t have to pay back some or all of your loan(s)."
People who work in specific public service roles are eligible: government employees, teachers, and those who work for non-profit organizations.
Teacher loan forgiveness specifically regards student debts of up to $17,500. To qualify for loan forgiveness, you have to 'teach full time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency', explains Federal Student Aid.
You also need to have a Direct Loan or Federal Family Education Loan (FFEL) Program loan.
Niamh Shackleton