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REPAYMENT PLANS IN LIMBO

  • Recent changes to student loan programs by the Trump administration and a February court ruling blocking some Biden-era initiatives, specifically impacting income-driven repayment plans, have created widespread frustration and confusion for borrowers.
  • The Education Department responded to the court ruling by removing online and paper applications for income-driven repayment plans, leading to uncertainty about the recertification process.
  • Borrowers like Breen, a 56-year-old agency worker in Spokane, Washington, and Jessica Fugate, a 42-year-old government relations manager in Los Angeles, are unsure of their options and ability to afford payments if income-driven repayment plans are discontinued.
  • Natalia Abrams of the Student Debt Crisis Center and Aissa Canchola Baez of the Student Borrower Protection Center advise borrowers to contact their loan servicers, understand their recertification deadlines, document their account status, and explore options like forbearance or deferment.
  • Adding to the uncertainty, StudentAid.gov experienced an hourslong outage on Wednesday, and layoffs are occurring at the Education Department, even as the department states it will continue to deliver on its commitments.
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The McDowell News broke the news in on Tuesday, March 25, 2025.
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