Breaking: Trump Student Loan Forgiveness & Tax Implications Update 💸

The Education Department announced it was reopening two paths toward Income-Driven Repayment Plan Forgiveness. For the past several months, the department said the only way borrowers who paid for 20 to 25 years could get their loans forgiven was through the Income-Based Repayment Plan. That means borrowers who were in SAVE or the Income-Contingent Repayment or Pay As You Earn Plan had to switch to the IBR plan before their loans could be forgiven.

But that's no longer the case.

Now, following an agreement with the American Federation of Teachers, the Education Department said borrowers who have 240 or 300 monthly payments in the PAYE or ICR Plan can stay in those plans and get their loans forgiven.

But what does this mean if you're in the SAVE Plan? You'll need to switch to one of those other plans to get your loans forgiven.

On top of that, they announced one more thing: If you're eligible for IDR Forgiveness in 2025, you won't owe taxes even if your loans aren't forgiven until 2026.

In this video, we'll cover:

What the DOE’s joint report actually changes for IBR, ICR, PAYE, and SAVE
Why SAVE can’t forgive right now and how to switch plans without losing credit
The “effective date” rule that can protect 2025 discharges from federal tax, even if processing slips into 2026
Who needs to reapply for IBR because Partial Financial Hardship is gone
How to use the backdoor studentaid.gov link to see your IDR/IBR payment counts
Refund rules after you’ve crossed 240/300 (and what doesn’t get refunded)
What this means for Parent PLUS, PSLF buyback, TPD, Borrower Defense, and Joint Spousal Consolidations
What’s coming next with plan sunsets and the RAP plan timeline

CONNECT WITH STANLEY
Website: https://tateesq.com
LinkedIn: https://www.linkedin.com/in/stanleytate

TEAM
Founder + Host: Stanley Tate
Editor: Patrick Kevin Angeles
Thumbnail Artist: Keanu Rafil

RESOURCES
AFT v. U.S. Department of Education Joint Status Report (Oct. 17, 2025)- IBR Forgiveness Restart:  https://finly.ms-cms.com/wp-content/uploads/2025/10/gov.uscourts.dcd_.278527.54.0.pdf
Check Your IDR / IBR Payment Count (Backdoor Link): https://studentaid.gov/app/api/nslds/payment-counter/summary
IBR in 2025: How It Works, Who Qualifies, and What Happens Next: https://www.tateesq.com/learn/income-based-repayment
Should You Switch from SAVE or PAYE to IBR for Forgiveness?: https://www.tateesq.com/learn/student-loan-repayment-save-switch-to-ibr
How to Fix Your IBR Payment Count (2025 Step-by-Step Guide): https://www.tateesq.com/learn/student-loan-forgiveness-ibr-fix-count
Will I Owe Taxes on IBR Loan Forgiveness After 2025?: https://www.tateesq.com/learn/ibr-loan-forgiveness-taxes-after-2025
Reddit: https://www.reddit.com/r/StudentLoans/

TIMESTAMPS
0:03 New DOE forgiveness round: what changed
1:52 IDR forgiveness basics (IBR, ICR, PAYE, SAVE)
3:07 SAVE & AFT lawsuits — why IBR was the only path
13:54 DOE will forgive ICR/PAYE without switching to IBR
19:14 “Effective date” and 2025 tax protection
24:13 Who’s affected now (SAVE, IBR, ICR, PAYE)
26:35 Forgiveness timelines: 20 vs 25 years
28:04 PSLF & mid-progress borrowers
29:54 Parent PLUS: consolidation, credit, eligibility
31:00 Joint spousal consolidation status
32:52 Should you switch from SAVE now?
34:12 Check your progress (backdoor link)
34:46 IDR applications stuck “pending” — resubmit?
35:04 Submitting multiple IDR applications
36:52 Who should panic vs who can relax
37:41 Why changes are arriving via lawsuits
38:37 Plan sunsets (ICR/PAYE) and the RAP plan
39:49 Shutdown, servicers, and processing delays
42:41 Action plan: fix missing counts, privacy requests
45:45 Key deadlines: tax window, consolidation cutoff, refunds
48:24 Final wrap & next steps