In a significant win for student loan borrowers, the Trump administration has agreed to a court-supervised plan that will speed up debt cancellation under income-driven repayment programs and protect borrowers from unexpected tax bills next year.

The administration and the American Federation of Teachers (AFT) reached the agreement Friday in the AFT v. U.S. Department of Education case, resolving months of legal tension over the government’s obligation to cancel student debt for borrowers who have made decades of payments under federal law.

The AFT said in a statement that the deal — now awaiting court approval — requires the Education Department to follow through on debt forgiveness for eligible borrowers in 2025 and ensures they won’t face a surprise tax hit because of bureaucratic d

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