How to see if you qualify as Trump unveils plan to cancel student debt for millions

Student Loan Forgiveness Returns for Millions

Millions of Americans are now eligible for student loan forgiveness once again. 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, including student loan forgiveness.

AFT Challenges the Freeze

Representing nearly two million union members, the AFT argued that the White House had violated federal law. With most programs blocked, borrowers were left with only one option: the Income-Based Repayment plan (IBR).

Randi Weingarten, AFT president, condemned the move, saying 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 millions of borrowers who took on student debt to attend college. The former president tried to fix the system for 45 million Americans, but the new president is breaking it again.”

An Agreement is Reached

Since the lawsuit, the AFT negotiated with the Department of Education. On Friday, October 17, the two parties reached an agreement. The Trump administration confirmed that it will resume processing student loan forgiveness for those eligible under the original Income-Contingent Repayment (ICR) plan and the Pay As You Earn (PAYE) plan.

Currently, more than 2.5 million borrowers are enrolled in ICR or PAYE, according to CNBC. However, both programs will be phased out by July 2028 as part of the president’s new plan.

How to Check Your Eligibility

In the meantime, borrowers can check eligibility on the Federal Student Aid website. The site notes:
“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).”

Public service employees—including government workers, teachers, and non-profit staff—are eligible for forgiveness.

Teacher Loan Forgiveness

Teacher loan forgiveness applies to student debts of up to $17,500. To qualify, you must:

Teach full-time for five consecutive academic years
Work in a low-income elementary or secondary school, or in an educational service agency
Have a Direct Loan or Federal Family Education Loan (FFEL)

This agreement restores hope for many Americans burdened with student debt and highlights the importance of advocating for accessible repayment programs.