In recent weeks, the U.S. Department of Education announced the resumption of loan forgiveness under income-driven repayment programs (IDR) for borrowers who qualify, and confirmed that the forgiven debt in 2025 will not trigger federal income tax. Newsweek+3Investopedia+3New York Post+3 For a college student considering future repayment or already repaying, this is a significant change: it alters how you might plan financially, how you think about borrowing, and what your expectations might be if you enter an IDR plan.
However, the claim as stated (“millions will have debt cancelled and won’t face taxes”) needs nuance. The relief is for those who meet specific eligibility criteria (certain IDR plans), and state taxes may still apply. New York Post Also, details about how quickly processing happens and how many qualify are still in flux. So it’s mostly true but the “millions” and “won’t face taxes” need the qualifications.
