Education Department Sends New IDR Forgiveness Notices After 20 to 30 Years of Payments
Updated
Updated · Forbes · Aug 14
Education Department Sends New IDR Forgiveness Notices After 20 to 30 Years of Payments
3 articles · Updated · Forbes · Aug 14
Summary
A new batch of "golden letters" went out this week telling federal borrowers they have reached the payment threshold for income-driven repayment forgiveness and may have some or all loans discharged.
Under IDR rules, remaining balances can be wiped out after 20 to 30 years of qualifying payments; borrowers generally need take no action unless they opt out by an early-September deadline, with discharges expected about two weeks later.
More than a year after removing StudentAid.gov's IDR payment tracker, the department still has not restored it, leaving millions unable to see their progress toward forgiveness as forgiven balances again face federal taxation.
Those notices arrive amid broader servicing turmoil: SAVE borrowers are being told to switch plans within 90 days, while payment miscalculations, application errors and a PSLF data glitch have fueled calls for a systemwide payment and interest pause.