President Donald Trump’s administration has agreed to cancel the student loan debt of up to 2.5 million borrowers after the American Federation of Teachers sued his administration earlier this year over its reversal of student loan forgiveness policies launched under former President Joe Biden’s administration.

According to Fox Business, an agreement between the Trump administration and the American Federation of Teachers was reached on Friday over student loan debt cancellation for borrowers under income-driven repayment programs. The outlet noted that the American Federation of Teachers sued the Trump administration in March after Trump reversed the Biden administration’s student loan forgiveness policies and paused enrollment and processing for income-driven repayment programs.

In a statement obtained by Fox Business, American Federation of Teachers President Randi Weingarten said, “For nearly a decade, the AFT has fought for the rights of student loan borrowers to be freed from the shackles of unjust debt—and today, a huge part of that affordability fight was vindicated. This year, we took on the Trump administration when it refused to follow the law and denied borrowers the relief they were owed.

“Our agreement means that those borrowers stuck in limbo can either get immediate relief or finally see a light at the end of the tunnel. And, crucially, they won’t ever get taxed on that relief,” Weingarten added. “The AFT will hold the federal government to its word, and we won’t stop fighting until college is affordable and taking out a student loan doesn’t trap millions of Americans in a ruinous and exploitative debt cycle.”

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The agreement reached between the Trump administration and the American Federation of Teachers requires the Trump administration to cancel the student debt of eligible borrowers under Public Service Loan Forgiveness, income-driven repayment, income-contingent repayment, and Pay As You Earn programs. The Trump administration will also be required to process Public Service Loan Forgiveness and income-driven repayment “buyback” applications, according to Fox Business.

Additionally, under the agreement, borrowers who have their loans canceled before the end of the year will not be taxed on the student loan forgiveness.

According to Fox Business, the Department of Education confirmed that it has already restarted processing eligible student loan cancellations for income-driven repayment programs.

“The Biden Administration’s illegal attempts at mass student loan forgiveness impacted all of the Department’s income-driven repayment programs, including Income-Based Repayment,” a Department of Education spokesperson stated. “The courts intervened to stop their illegal efforts, but that also impacted Department systems and prevented us from processing lawful loan discharges.”