MoMo Productions / Getty Images As student loan forgiveness resumes, borrowers need to assess their situations to make sure they qualify for dismissal. KEY TAKEAWAYS Student loan borrowers who qualified for loan forgiveness in 2025 will not have to pay taxes on their discharged loans. Borrowers must have made a certain number of payments and be on an eligible repayment plan to have their loans dismissed. While the Department of Education has resumed student loan forgiveness, you may still need to co ...

Student loan debt is a major issue. Nearly 43 million people — about 1 in 6 American adults — have outstanding federal student loans. For the millions of borrowers with federal loans, loan forgiveness can provide substantial relief. Eligible borrowers can qualify for forgiveness of thousands of dollars, allowing them to pursue other financial or career goals. Since the start of President Trump's second term, there have been significant changes to the federal student loan system, and more updates are expec ...