The Trump administration has agreed to cancel student debt for millions of borrowers, multiple outlets report. The administration had partially blocked some student loan forgiveness plans. According to CNBC, the White House reopened a path to student loan forgiveness through an agreement reached between the U.S. Department of Education and the American Federation of Teachers (AFT). Report: The Trump administration has agreed to cancel student debt under programs it had partially blocked, which now reopens a path to student loan forgiveness for millions of borrowers Via: CNBC pic.twitter.com/d1gqBijHF4 — The Calvin Coolidge Project (@TheCalvinCooli1) October 19, 2025 More from the New York Post: In an agreement with the American Federation of Teachers, the White House will again start processing student loan forgiveness for eligible borrowers in two income-driven repayment plans – Income-Contingent Repayment and Pay as You Earn – until they expire. President Trump’s “Big, Beautiful Bill” is slated to phase out those two programs by July 1, 2028. They have over 2.5 million enrollees total, a higher ed expert estimated. “This is a tremendous win for borrowers. With today’s filing, borrowers can rest a little easier,” said Winston Berkman-Breen, legal director for Protect Borrowers, which acted as counsel for the teachers’ union. “The US Department of Education has agreed to follow the law and deliver Congressionally mandated affordable payments and debt relief to hard-working public service workers across the country, and will do so under court supervision. We fully intend to hold them to their word.” Under Friday’s agreement, borrowers who become eligible for student loan forgiveness this year will not owe federal taxes on the relief, the Trump administration said. The AFT had sued Trump administration officials in March, alleging they blocked federal student loan holders from “programs mandated in their original borrowing terms,” CNBC noted. Student loan forgiveness quietly resumes for some Americans. Are you one of them? https://t.co/uGzpUBw6xO — USA TODAY (@USATODAY) October 17, 2025 CNBC provided further info: Earlier this year, the Trump administration had paused student loan forgiveness under some income-driven repayment plans, and said that it was doing so in response to court orders. IDR plans set a borrower’s monthly bill at a share of their discretionary income and cancel any remaining debt after a certain period, usually 20 years or 25 years. The Education Department under Trump said that a court order that halted the Saving on a Valuable Education, or SAVE, plan — a Biden administration era program — had implications for other IDR plans. Consumer advocates had argued that that was too broad a reading of the court order. And it left borrowers with just one repayment plan available that led to student loan cancellation: the Income-Based Repayment plan, or IBR. For a period, the Trump administration also paused IBR loan cancellation, though it has since resumed processing that aid.