Some student-loan borrowers are getting an early Valentine’s Day gift from the Department of Education.
Earlier this week, another batch of borrowers who have completed at least 20 years of payments on an income-driven repayment plan received emails from the department with the subject line: “You’re eligible to have your student loan(s) discharged.”
The email, which multiple borrowers shared with Business Insider, said that the department will “work with your loan servicer to process your IDR discharge over the next several months.” Borrowers do not need to take any action to receive the relief; however, those who wish to opt out of the relief have to contact their servicer by March 5 to specify that they do not want the discharge.
Borrowers might choose to opt out of the relief to avoid state tax liability, the email said. Doing so would require them to continue paying back their loans.
After the March opt-out date, the department will send borrowers’ information to their servicers, and the servicer will notify the borrower once the relief has been processed. The email said that most borrowers will see the relief processed within two weeks, but it could take more time for some borrowers.
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Why student-loan borrowers are getting debt relief
This student-loan forgiveness comes after the expiration of 2021 provision from the American Rescue Plan that made forgiveness tax-free. Borrowers who become eligible for relief after January 1, 2026, could be hit with thousands of dollars in taxes. However, the Department of Education previously said that it will consider the date a borrower reached their payment threshold as the date of the relief, so even if they were part of the latest batch of emails, if they completed their last payment in 2025, they should not face additional taxes.
The Department of Education did not immediately respond to a request for comment from Business Insider on how borrowers can confirm their tax status on the latest loan forgiveness. However, the borrower’s servicer would typically notify the borrower of the relief’s effective date.
The student-loan industry overall is facing significant changes in the coming months. Beginning in July, the department will begin implementing its repayment overhaul, which President Donald Trump signed into law as part of his “big beautiful” spending legislation. It includes new income-driven repayment plans and borrowing caps for advanced degrees. Borrowers who enroll in the new plans would have longer timelines to forgiveness and could face higher monthly payments.
The department has maintained that its goal is to simplify repayment and ensure that borrowers do not take out student loans they cannot afford to repay.
“We have a clear path forward to fulfill the President’s promise of making higher education more affordable and ensuring that every professional in America—from teachers and nurses to physicians and clergy—can pursue their careers without taking on debt they may never be able to repay,” Undersecretary of Education Nicholas Kent said in a recent statement.
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