Forgiveness
IDR Forgiveness in 2026: Timelines, RAP, and Taxes
Learn the current forgiveness timelines for legacy IDR plans and RAP, plus the federal tax treatment of discharges in 2026 and later.
Income-driven repayment can discharge a balance that remains after the applicable repayment period, but the period is not the same for every plan. SAVE ended March 10, 2026. Eligible legacy IBR, PAYE, and ICR borrowers retain the 20- or 25-year terms that apply to their plan and borrower status, subject to current transition rules.
RAP uses a 30-year discharge period
A borrower enrolled in RAP may receive discharge only after 360 monthly, on-time payments if a balance remains. RAP payments do not add credit toward a separate legacy IBR, PAYE, or ICR forgiveness term. Borrowers should verify the credited months and the plan attached to each period in their federal account.
Federal taxation after 2025
A balance forgiven under IDR in 2026 or later is generally federal cancellation-of-debt income. PSLF, Teacher Loan Forgiveness, death discharge, and total and permanent disability discharge have identified federal exceptions. Insolvency and other exclusions may apply to an individual taxpayer, and state treatment can differ, so tax advice should be individualized.
Frequently asked questions
How long does IDR forgiveness take now?
Eligible legacy plans generally use applicable 20- or 25-year terms. RAP requires 360 on-time monthly payments. SAVE no longer provides a forgiveness path.
Is IDR forgiveness federally tax-free after 2025?
Generally no. IDR forgiveness in 2026 or later is generally cancellation-of-debt income, although taxpayer-specific exclusions may apply.