Trump administration to resume forgiveness on some student loans after lawsuit - report

[Graduation cap and Student loan forgiveness on the page.]
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The White House agreed to resume student loan forgiveness [https://seekingalpha.com/pr/20274316-trump-administration-pledges-to-speed-some-student-loan-forgiveness-after-lawsuit]for an estimated 2.5M borrowers enrolled in certain federal repayment plans following a lawsuit from the American Federation of Teachers, according to media reports.

Under an agreement between the union and the Trump administration, the Education Department will process loan forgiveness for those who qualify under certain repayment plans that base monthly payments on a borrower's income, the Associated Press reported. The government had ended forgiveness under those plans based on its interpretation of a different court decision.

The agreement will also shield borrowers from high tax bills on debt due to be forgiven this year.

"Our agreement means that those borrowers stuck in limbo can either get immediate relief or finally see a light at the end of the tunnel," said AFT President Randi Weingarten.

The deal requires the Trump administration to cancel student debt for borrowers enrolled in the following plans, who have made the required number of payments: income-driven repayment ("IDR"); income-contingent repayment plans; Pay As You Earn ("PAYE"), and Public Service Loan Forgiveness ("PSLF") plans.

An estimated 2.5M borrowers in IDR plans will benefit from the agreement, and 70,000 more are waiting for forgiveness through the PSLF program, the AP said.

Student loan-related tickers: SoFi Technologies (NASDAQ:SOFI [https://seekingalpha.com/symbol/SOFI]), Nelnet (NYSE:NNI [https://seekingalpha.com/symbol/NNI]), SLM Corp. (NASDAQ:SLM [https://seekingalpha.com/symbol/SLM]).

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