Trump Announces Student Loan Forgiveness
WASHINGTON, D.C. — Millions of Americans are finally getting long-awaited relief thanks to a new student loan forgiveness deal reached under President Donald J. Trump’s administration, rewarding those who’ve paid faithfully for decades while restoring integrity to a system long abused by the Left.
A Fair Deal for Hardworking Americans
The Trump administration’s agreement with the American Federation of Teachers (AFT) marks a turning point in student loan reform. It resumes forgiveness for borrowers who’ve made 20 to 25 years of payments, ensuring relief goes to those who earned it — not to freeloaders or political favorites.
Under the deal, the Education Department will continue processing legitimate debt relief through Income-Contingent and Pay As You Earn plans until 2028, when they’ll be streamlined under President Trump’s bold education reform agenda — the “Big, Beautiful Bill.”
No New Taxes on Earned Forgiveness
Borrowers who qualify for loan forgiveness this year won’t face extra taxes on their canceled debt — a welcome decision for retirees and middle-class families. Starting in 2026, normal tax rules will resume, maintaining fiscal balance while ensuring fairness for taxpayers.
“This agreement means that borrowers who’ve played by the rules finally see the relief they’ve earned,” said AFT President Randi Weingarten. “They’ll also avoid unnecessary tax burdens on that forgiveness.”
Biden’s Illegal Scheme Shut Down — Trump Restores Order
The new deal comes after the Trump administration paused the flawed Biden-era mass forgiveness plan, which courts later found unlawful. A spokesperson for the Education Department said:
“The Biden administration’s illegal mass loan-forgiveness schemes disrupted every repayment program. Thanks to President Trump’s leadership, we’ve separated the illegal programs from the lawful ones — allowing legitimate relief to move forward again.”
This reform ensures fairness, protecting taxpayers while honoring Americans who have upheld their obligations.
Public Service Workers Also Benefit
Those enrolled in the Public Service Loan Forgiveness Program will also see progress. Under the new guidelines, months spent in forbearance can now count toward loan-forgiveness eligibility — a long-awaited fix that helps nurses, firefighters, and teachers across the country.
SAVE Plan Borrowers Encouraged to Switch
While borrowers on the Biden SAVE Plan remain ineligible under the court order, experts recommend they call their servicers to explore options under traditional income-driven repayment plans, which qualify under the Trump agreement.
Processing Delays Expected During Government Shutdown
Due to the ongoing federal government shutdown, 95% of Education Department staff remain furloughed, causing temporary processing delays. However, advocates say the relief is coming — and it’s long overdue.
“This is overdue for many families who’ve done their part,” said Sabrina Calazans of the Student Debt Crisis Center. “They’ve paid faithfully, and they deserve closure.”
Oversight and Accountability Included
To ensure transparency, the Department of Education must now provide monthly court reports showing how many borrowers are receiving forgiveness and how many are still waiting. If progress stalls, watchdog groups vow to take further legal action.
“This is a victory for fairness,” said Winston Berkman-Breen of Protect Borrowers. “We’ll keep monitoring to make sure the Department delivers on its promises.”
Trump’s Leadership Brings Stability and Common Sense
This landmark deal highlights President Trump’s commitment to restoring fairness, fiscal sanity, and accountability in the student loan system — helping those who worked hard, followed the rules, and carried the burden for too long.
Under Trump, student loan relief isn’t a political giveaway — it’s a reward for responsibility, integrity, and perseverance.
