Overview
- A federal judge stayed the AFT’s case until Congress restores Justice Department funding, canceling an Oct. 31 hearing on a preliminary injunction and class certification.
- The Education Department has begun emailing IBR forgiveness approvals with an Oct. 21 opt-out, but the notices say discharges will occur over months, creating timing risks during the shutdown.
- September court filings show 1,076,266 pending income-driven repayment applications and more than 74,000 PSLF Buyback requests awaiting review.
- The American Rescue Plan’s tax exclusion for IDR cancellations ends on Jan. 1, 2026, so delays that push discharges into next year could trigger federal tax bills.
- Recent reductions-in-force affecting over 4,100 federal workers end agency loan-repayment assistance and pause PSLF credit unless laid-off employees find another qualifying employer.