The Department of Education provides a subsidy for all IDR plans

The Department of Education is resuming student loan forgiveness under all current income-based repayment plans.

In a court filing Friday afternoon, the department confirmed it would begin processing loan discharges under income-based, pay-as-you-earn, and income-contingent repayment plans.

The Education Department said it will also ensure that borrowers who reach loan repayment qualifications in 2025 will not pay taxes on them.

Earlier this year, the department temporarily suspended relief under all income-based repayment plans to comply with the court ruling. This means that borrowers who met all eligibility requirements for forgiveness were unable to repay their loans within the past three months.

Borrowers under the SAVE plan are still in forbearance. However, the department said SAVE borrowers who have achieved forgiveness eligibility can convert to IBR, PAYE or ICR before the end of the year and will receive tax-free relief.