UPDATE: Donald Trump Takes Office as the 47th US President



BREAKING: Trump’s Education Department just announced it will forgive student loans for millions of borrowers a stunning reversal after years of attacking debt relief.

Roughly 2 to 2.5 million borrowers in income-based and public-service repayment plans will now see their balances wiped.

It’s not universal cancellation; but it’s the clearest sign yet that even Trump’s team knows this crisis can’t be ignored.


The clown show administration never had a change of heart. They LOST a lawsuit actually...

AI Overview:

The student loan forgiveness you may have heard about in October 2025 was the result of a legal settlement, not a new policy initiated by a Trump administration. This agreement requires the Department of Education, under the current administration, to follow through on existing, legally established income-driven repayment (IDR) plans.

The legal settlement and its effects
  • Lawsuit and agreement: In October 2025, the Department of Education settled a lawsuit with the American Federation of Teachers (AFT). The AFT had sued the department earlier that year for pausing loan forgiveness for eligible borrowers in certain IDR plans.
  • Restored forgiveness: The agreement requires the department to resume processing loan forgiveness for those in the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans.
  • Tax exemption: It also ensures that borrowers whose loans are canceled in 2025 will not face a federal tax penalty, despite processing delays.
  • Limited scope: This deal applies only to legally established IDR plans, not mass student loan forgiveness. The PAYE and ICR plans are scheduled to be phased out in July 2028 as part of the current administration's "One Big Beautiful Bill Act".
 
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