Overview
- The joint agreement, filed Oct. 17 and awaiting court approval, would resume cancellations for borrowers in IBR, the original ICR, and PAYE, and restart PSLF buybacks.
- Education officials must submit six monthly progress reports to the court detailing application processing and discharges.
- Borrowers who become eligible in 2025 would be protected from a federal tax bill by treating eligibility as the discharge date, with the IRS and Treasury retaining final tax authority.
- The plan includes reimbursements for payments made after borrowers hit their qualifying threshold and requires processing of IDR and PSLF buyback applications.
- Roughly 2 to 2.5 million borrowers could be affected, even as ICR and PAYE are slated for phase-out by July 1, 2028 under the administration’s legislative plan.