\n<\/p>\n
People walk in front of the the U.S. Department of Education, amid reports that U.S. President Donald Trump’s administration will take steps to defund the federal Education Department, in Washington, U.S., February 4, 2025.\u00a0<\/p>\n
Kevin Lamarque | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Despite the government shutdown<\/a>, the U.S. Department of Education is sending out notices to student loan borrowers<\/a> that their debt will soon be cancelled.<\/p>\n “You are now eligible to have some or all of your federal student loan(s) discharged because you have reached the necessary number of payments under your Income-Based Repayment (IBR) Plan,” reads an email sent to a borrower. CNBC reviewed multiple notices to borrowers.<\/p>\n According to the department email, the recipient’s loan discharge will be processed “over the next several months,” and borrowers have until Oct. 21 to opt out of the relief.<\/p>\n<\/div>\n