Income-driven repayment (IDR) forgiveness is an automatic benefit for borrowers who make consistent payments on qualifying plans.
IDR Forgiveness Timelines
- Repayment Assistance Plan: 30 years (360 payments)
- SAVE Plan: ended by court order on March 10, 2026
- PAYE: 20 years for all loans
- IBR (new borrowers after 7/1/2014): 20 years
- IBR (older borrowers): 25 years
- ICR: 25 years
Tax Implications
Under the American Rescue Plan Act of 2021, student loan forgiveness was not treated as taxable income through December 31, 2025. That provision was not extended, so forgiven amounts after that date can be federally taxable. This is a major consideration for anyone expecting a large forgiveness amount.
IDR Account Adjustment
The Department of Education conducted a one-time account adjustment in 2023-2024 that credited borrowers with additional qualifying payments, including periods of forbearance and certain deferments. This adjustment moved many borrowers significantly closer to the 20/25-year forgiveness threshold.
If you are on an IDR plan, check your payment count through your servicer or studentaid.gov. You may be closer to forgiveness than you realize.