Some student loan repayment plans have been suspended. Here’s what borrowers should know
By CORA LEWIS, Associated Press
NEW YORK (AP) — The Trump administration’s recent changes to student loans are causing frustration and confusion for some borrowers.
In response to a February court ruling that blocked some Biden-era programs, the Education Department has taken down online and paper applications for income-driven repayment plans.
“This especially hurts anyone who’s lost their jobs, including federal workers,” said Natalia Abrams, founder and president of the Student Debt Crisis Center. “A few months ago, they would have been able to get on a zero-dollar income-driven repayment plan.”
The removal of application materials also has caused confusion around the recertification process for borrowers already enrolled in repayment plans, experts say. Income-driven repayment plans take a borrower’s finances and family size into account when calculating monthly payments, but borrowers must periodically demonstrate they still qualify.
Adding to the uncertainty are layoffs at the Education Department, which oversees the federal loan system. The federal website for student loans and financial aid, StudentAid.gov, suffered an hours-long outage Wednesday, but the department has said it will continue to deliver on its commitments.