Summary
The Trump administration is changing the rules for student loan forgiveness. It plans to limit eligibility for borrowers working at certain nonprofit organizations related to activities it deems illegal. It also announced it will restart canceling student loan debt for some eligible borrowers.
Key Facts
- The Department of Education will resume canceling student loan debt for some borrowers.
- New rules limit loan forgiveness for workers at nonprofits involved in activities considered "illegal" by the administration.
- The organizations affected include those aiding immigrants and transgender youth.
- There is over $1.6 trillion in student loan debt in the U.S.
- About 52% of federal loan borrowers aim to repay their debt in 10 years.
- Public service loan forgiveness requires 10 years of payments for federal employees and certain nonprofit workers.
- Income-driven repayment plans allow lower monthly payments based on income, with potential forgiveness after 20-30 years.
- The forgiven loan amounts might be taxed as income starting in 2026.
