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Student Loan Forgiveness Processing Resumes After Shutdown

11/27/2025

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Summary

Story summary

U.S. Secretary of Education Linda McMahon announced resuming processing of student loan forgiveness under income-driven plans after the government shutdown.
Borrowers reported receiving 'golden letters' signaling discharge eligibility.
The Education Department paused processing earlier due to legal challenges and system updates.
Following a lawsuit by the American Federation of Teachers, the department will resume processing for Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE).

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Story summary

U.S. Secretary of Education Linda McMahon announced resuming processing of student loan forgiveness under income-driven plans after the government shutdown.
Borrowers reported receiving 'golden letters' signaling discharge eligibility.
The Education Department paused processing earlier due to legal challenges and system updates.
Following a lawsuit by the American Federation of Teachers, the department will resume processing for Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE).