How to find out if you're eligible for Trump's plan to cancel student debt for millions of borrowers

The idea of continuing your studies into further education is all well and good, but as we're repeatedly reminded, money doesn't grow on trees.

With Harvey Mudd College being frequently cited as one of the most expensive universities in the USA, the annual attendance cost of around $89,500 is enough to leave our eyes watering and our bank balances broken.

Although the average annual tuition in a US university is about $26,290, that's still not exactly short change to most of us. It leaves us in a tricky position of wanting to land that supposedly 'dream' job through higher education, but having to turn to borrowing to finance it.

An October 2025 agreement between the U.S. Department of Education and the American Federation of Teachers union shook hands on loan relief for students.

The Trump administration plans to process loan forgiveness in the Income-Contingent Repayment plan and the Pay as You Earn plan – as long as they remain in effect.

Donald Trump's controversial One Big Beautiful Bill will phase out ICR and PAYE on July 1, 2028.

Why did the Trump administration pause student loan forgiveness?

CNBC reveals how higher education expert Mark Kantrowitz claims there are over 2.5 million borrowers in either ICR or PAYE. Winston Berkman-Breen, the legal director for Protect Borrowers, which served as the AFT’s counsel, cheered the changes: "This is a tremendous win for borrowers.

“The U.S. 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.”

The AFT represents 1.8 million union members and filed a March 2025 lawsuit against the current administration. It maintained that the POTUS was blocking federal student loan holders from programs that were mandated in their original borrowing terms.

The Trump administration 'paused' student loan forgiveness under some income-driven repayment plans earlier in 2025, claiming that it was in response to court orders.

Income-driven repayment (IDR) plans set your monthly bill at a share of your discretionary income, typically cancelling out any remaining debt after either 20 years or 25 years.

Who is eligible for Donald Trump's student loan relief?

If you want to check whether you're eligible for student loan relief, simply head to the Federal Student Aid website. The site explains: "In certain situations, you can have your federal student loans forgiven, canceled, or discharged. That means you won’t have to pay back some or all of your loan(s)."

Those who work in public service roles are eligible, meaning government employees, teachers, and people working for non-profit organizations can claim relief. Medical professionals like doctors and nurses, anyone who is classified as having a disability, and those who pay under an Income-Based Repayment plan are also eligible.

Teacher loan forgiveness is aimed at debts of up to $17,500, although you'll need to "teach full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency."

Anyone eligible will also need to have a Direct Loan or Federal Family Education Loan (FFEL) Program loan.

This is a move in the right direction for the AFT, especially after the Trump administration only left borrowers the Income-Based Repayment plan in terms of student loan cancellation. The government also paused IBR loan cancellation, although it has since continued processing aid.