Student-Loan Forgiveness Turns Real Under Trump — Emails Say Discharge Within Weeks Despite Staffing Meltdown

Student-loan forgiveness is finally materializing for some borrowers under President Donald Trump's administration.

Earlier this October, federal student-loan holders enrolled in income-based repayment (IBR) plans began receiving emails confirming they qualify for loan discharge—potentially within weeks. The news marks a rare moment of relief in a policy landscape that has long prioritized repayment over cancellation.

Emails Signal Imminent Discharge

The Department of Education began sending notifications to eligible borrowers stating that their loans are set to be discharged. The emails, reviewed by Business Insider, include a timeline: most borrowers will see their discharge processed within two weeks, though some may experience delays.

'Your loan servicer will notify you if and when your IBR discharge has been processed,' the email reads. 'It may take some time for your loan servicer to process your discharge and for your account to reflect this change.'

While the department has not disclosed how many borrowers are affected, Federal Student Aid data shows that 2 million borrowers were enrolled in IBR plans as of Q2 2025.

Who Qualifies for Forgiveness

IBR plans, first enacted in 2009 and updated in 2014, allow borrowers to make monthly payments based on income, with the promise of forgiveness after 20 or 25 years. Those who enrolled before July 1, 2014, typically paid 15% of their discretionary income over 25 years; those who enrolled after that date paid 10% over 20 years.

Borrowers can switch into IBR from other income-driven plans, and payments made before IBR's implementation still count toward forgiveness. Recent updates signed into law by Trump in July expanded eligibility further—removing the financial hardship requirement and allowing some parent PLUS borrowers to qualify.

Shutdown Threatens Processing Timeline

Despite the promising emails, the ongoing government shutdown—active since October 1—has cast uncertainty over the discharge timeline. A notice on the Federal Student Aid website warns that 'information on this website may not be maintained, and inquiries may not receive a response.' Borrowers are advised to continue making payments as scheduled.

The Department of Education plans to send discharge data to loan servicers after October 21. Borrowers who wish to opt out must do so before that date. However, furloughs and staffing cuts could delay paperwork processing, including forgiveness approvals.

Tax Implications and Legal Action

Time is of the essence for borrowers hoping to avoid tax penalties. A provision in the 2021 American Rescue Plan made student-loan forgiveness tax-free through 2025. After January 1, 2026, discharged amounts could become taxable, potentially costing borrowers thousands.

The shutdown has also disrupted ongoing litigation. The American Federation of Teachers (AFT), representing borrowers under Public Service Loan Forgiveness (PSLF), filed a lawsuit urging the department to cancel loans for those who've met payment thresholds. While the case was paused due to the lapse in appropriations, a joint status report filed on October 17 confirmed that the department will honor the date a borrower becomes eligible as the effective discharge date—shielding them from 2026 tax liability.

What Borrowers Should Watch For

While the emails offer hope, the path to forgiveness remains fraught with delays and administrative hurdles. Borrowers should monitor their servicer accounts, confirm eligibility, and act quickly if opting out. For many, this long-awaited relief could arrive just in time—but only if the system holds.