4 Moves to Make By Year-End to Get Tax-Free Student Loan Forgiveness
Elizabeth Guevara
October 29, 2025
While the Department of Education has resumed student loan forgiveness, you may still need to complete a few tasks to ensure your loan is dismissed without having to pay federal taxes.
The Department of Education resumed granting student loan forgiveness on most income-driven repayment plans earlier this month. However, there is no confirmed date for when qualifying borrowers will receive their forgiveness. Borrowers who became eligible in 2025 may have to wait until next year to get their paperwork processed and their loan discharged.
Many borrowers have worried they will not receive their forgiveness before a temporary tax rule created by former President Joe Biden ends on Jan. 1, 2026. However, the Department of Education confirmed that if a borrower becomes eligible for forgiveness in 2025, they would not have to pay federal taxes on their discharged loan.
