US EditionUnion sues Trump administration for shutting down student loan repayment plans
- Many borrowers face dramatic increases in monthly payments, with some experiencing a quadruple surge in their payment amounts due to a federal judge blocking Biden's SAVE plan.
- The American Federation of Teachers is suing the U.S. Department of Education, alleging that the administration is denying borrowers access to affordable loan payment options.
- AFT claims that the actions of the prior administration are effectively breaking the student loan system, impacting nearly 43 million federal student loan borrowers.
- Concerns have been raised about the future of federal student aid programs, as nearly 50% of the Department of Education's staff has been laid off, which raises issues for public service workers.
32 Articles
32 Articles
Income-driven repayment for student loans: how it works and alternatives
For many student loan borrowers, income-driven repayment (IDR) plans can make monthly payments much more manageable. Rather than simply divvying up the total owed across the loan term, IDR plans base the monthly payments on a borrower's income and family size.But lately, borrowers have faced some whiplash on the option's availability. "In February, a U.S. appeals court blocked" one IDR plan, the Saving on a Valuable Education (SAVE) plan, and "c…
Millions of Americans Delinquent on Student Loans
by Martin Armstrong, Armstrong Economics: Millions of Americans believed that their student loans would be forgiven per the promises made under Biden Administration. Then there was a period of student loan forgiveness that began during the COVID era when countless people found themselves unemployed. Payments have resumed but 9.2 million (43% of federal loan borrowers) […]
Education Department Sued for Freezing Student Loan Repayment Plans
In other education news, the American Federation of Teachers is suing Trump’s Department of Education for shutting down income-driven student loan repayment plans, used by millions of borrowers. The union accused the Trump administration of “effectively freezing the nation’s student loan system.” Separately, two parents and a national disability rights group last week filed a lawsuit accusing Trump and Education Department head Linda McMahon of …
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