The Department of Education (Department) has agreed to deliver long-delayed student debt relief for borrowers enrolled in income-driven repayment plans (IDR) and the Public Service Loan Forgiveness (PSLF) program under a recent lawsuit, separate from the lawsuit above, and associated joint status report.

The agreement requires the Department to cancel student debt for eligible borrowers, issue refunds for payments made after reaching forgiveness, and process buyback applications for both repayment programs.

This settlement directly affects PSLF participants by continuing to process applications, expanding access for eligible employers, including nonprofits, and improving oversight through six months of mandated reporting on progress made. Notably, the Department must treat the official loan discharge date as the date the borrower first became eligible to ensure that the forgiveness is not treated as taxable income.