If you’re a student loan borrower, there are bigger changes happening right now than the weather and the leaves. We’ve got fresh intel on the PSLF Buyback Program, major news on the tax treatment of loan forgiveness, two lawsuits worth watching, and new moves from the Department of Education. So grab some leftover Halloween candy (or maybe that first slice of pumpkin pie) and let’s dig in.
Is it Time to Move on from SAVE?
We still do not have firm guidance on when the SAVE forbearance will end, nor specific instructions for what the transition process will be. What we do have is updated details regarding how calculations will work for the PSLF Buyback program, along with a few buybacks which have completed the process.
This new information has caused us to re-evaluate whether continuing to ride out the SAVE forbearance is really the best move for most borrowers who are pursuing PSLF. With constantly changing guidance combined with the influence of political factors, providing student loan advice is becoming as much of an art as it is a science these days.
That being said, we want to take this opportunity to lay it all out for you, explain what we know and what we don’t know, so that you can make the best decisions possible. Check out our dedicated article to get the low down on these important developments.
Fresh News on IDR Forgiveness Taxes and the AFT Lawsuit
In our last update, we flagged a growing concern for borrowers reaching 20- or 25-year forgiveness eligibility under IDR plans in 2025. Many feared that processing delays could push their forgiveness into 2026, thereby causing them to miss out on temporary tax breaks expiring at the end of 2025.
The good news? The American Federation of Teachers sued the Trump administration over this issue, and the Department of Education agreed to a settlement. Borrowers who qualify for forgiveness in 2025 will not face federal tax obligations, even if their forgiveness is processed later. That’s a huge win for long-term IDR borrowers. There are other wins in this settlement as well.
Read our full breakdown to determine if you are impacted.
A New PSLF Lawsuit: Restrictions and Pushback
Another item we covered last month was the new PSLF restrictions which are set to go into effect on July 1st, 2026. This all went exactly as expected. The Department of Education posted new PSLF restrictions the last week of October, echoing President Trump’s executive order from March.
Many experts (ourselves included) question whether these changes fall within the administration’s authority, since PSLF is a congressionally established program. Right on queue, a coalition of cities and unions filed a lawsuit on November 3 to stop the rule before it takes effect. The case is not a slam dunk, as the Department of Education does have some authority to administer the PSLF program and apply discretion when doing so. We’re watching this very closely to see how it plays out. Stay tuned as we’ll continue to follow it closely. Click here to read our full analysis.
Negotiated Rulemaking Wraps Up
Despite a government shutdown, the Department of Education wrapped up its Negotiated Rulemaking session last week to address key provisions of the One Big Beautiful Bill Act (OBBBA).
While we don’t expect to see those final regulations until next spring, we did get some clarity on one hot topic: which degree programs will be considered “professional” when it comes to the new $20,500 vs. $50,000 annual borrowing limits which begin next year. While the list is not finalized, it gives some helpful insight. We’ll provide more updates and details related to the OBBBA as information is released. Read our detailed breakdown of the big picture items from that bill here.
This Thanksgiving, We’re Thankful for You
At Student Loan Professor, we’re grateful for the thousands of borrowers who’ve trusted us to help them navigate their student loan journey. We know there are still so many others out there who need clarity, strategy, and peace of mind. If you know someone overwhelmed by their loans, we’d be thankful if you shared our name. We’ll even send you a $50 Amazon gift card to express our gratitude.
Brandon Barfield is the President and Co-Founder of Student Loan Professor, and is nationally known as student loan expert for graduate health professions. Since 2011, Brandon has given hundreds of loan repayment presentations for schools, hospitals, and medical conferences across the country. With his diverse background in financial aid, financial planning and student loan advisory, Brandon has a broad understanding of the intricacies surrounding student loans, loan repayment strategies, and how they should be considered when graduates make other financial decisions.
