After months of uncertainty, federal student loan cancellation is finally restarting for borrowers in specific repayment programs. Following a year-long halt, eligible participants in income-driven repayment plans may receive loan discharges within weeks, potentially affecting thousands of borrowers nationwide.

IBR Program Restarts After Extended Pause

The Income-Based Repayment program suspension, which affected federal borrowers throughout most of 2024, is officially ending. Department of Education officials confirmed that loan discharge processing will resume for qualifying participants who have made consistent payments under their income-driven repayment plan terms.

Eligibility Requirements for Federal Loan Discharge

Federal borrowers must meet specific criteria to qualify for student loan cancellation under the restarted program. Participants need documented payment histories, current enrollment in approved income-driven repayment plans, and compliance with annual income verification requirements established by federal lending guidelines.

Timeline and Next Steps for Borrowers

Eligible federal borrowers should expect discharge notifications within the coming weeks as processing systems come back online. The Department of Education recommends reviewing account status, updating contact information, and ensuring all required documentation remains current to avoid potential delays in loan forgiveness processing.

The resumption of student loan cancellation offers significant relief for federal borrowers who have waited months for program restoration. Eligible participants should monitor their accounts closely and maintain current documentation to ensure smooth processing of their income-driven repayment plan discharges.

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