Student loans to go to Treasury Department
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Many borrowers have already met the requirements for loan forgiveness under income‑driven repayment (IDR) plans.
Some types of student loan forgiveness will be taxed again after five years of being tax-free. The change will impact borrowers in income-driven repayment plans who have their debts canceled as a result of making a certain number of qualifying monthly payments.
In an ominous sign for student loan borrowers, the Education Department published new data indicating that backlogs for repayment plans and loan forgiveness are ongoing.
More than half a million federal student loan borrowers remain in a backlog of applications for an affordable repayment plan, a court filing revealed.
Major uncertainty remains about whether the Education Department will act on the ruling.
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576,000+ borrowers still stuck in student loan repayment plan backlog
Key Points ・A court filing shows 576,609 borrowers remain stuck in a repayment plan processing backlog, down from 1.4 million in July 2025. ・New online IDR applications are processing in 3-7 days for most borrowers,
Student loan holders who get their debt excused in 2026 can expect a hefty tax bill. But there are steps you can take to prepare, and some may not have to pay.
It's been a confusing time for people with student loans. Collections restarted, then were put on hold. At the same time, borrowers had to stay on top of changes to key forgiveness plans. President Donald Trump’s “Big Beautiful Bill” introduced new borrowing limits for graduates and raised challenges to the Public Service Loan Forgiveness program.
President Trump signed an executive order for changes to the PSLF program in March 2025. They impact who qualifies for forgiveness and go into effect July 1, 2026.
KeyBank offers student loan refinancing to students, graduates and parents who borrowed for their child’s education. It also offers student loan forgiveness counseling services. Students who need to borrow while in school may seek student loan counseling services from KeyBank,
Some days for Rachel Jordan start at 5 a.m. and don’t end until midnight — sometimes for multiple days in a row.“I’m just exhausted, honestly,” she said in an interview
A major deadline for certain federal student loans is only two weeks away, and failing to act could be a costly mistake for hundreds of thousands of borrowers.