Summary
The Trump administration agreed to a legal settlement to provide student debt relief to eligible borrowers. This agreement follows a lawsuit initiated by the American Federation of Teachers (AFT) and requires the administration to comply with existing federal laws about student debt relief programs.
Key Facts
- The Trump administration settled a lawsuit with the AFT for student debt relief.
- Millions of borrowers will receive debt relief under this legal agreement.
- The settlement requires the administration to follow federal laws on student debt programs.
- Debt relief includes canceling loans for eligible borrowers in income-driven repayment plans.
- Corey Mason, a teacher in Connecticut, is an example of a borrower who received debt relief after participating in the lawsuit.
- The agreement impacts those eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program.
- Eligible borrowers will avoid unexpected taxes on forgiven debt.
- The resolution includes processing backlogged applications for income-driven repayment and PSLF.
