Recent adjustments by the Trump administration to student loan policies have created frustration and confusion among some borrowers. Following a February court decision that blocked certain initiatives established during the Biden administration, the Department of Education has removed online and paper applications for income-driven repayment plans.
“This negatively impacts anyone who has lost their jobs, including federal workers,” said Natalia Abrams, the founder and president of the Student Debt Crisis Center. “Previously, they could have enrolled in a zero-dollar income-driven repayment plan.”
The withdrawal of application forms has also generated perplexity regarding the recertification procedure for borrowers already engaged in repayment plans, report experts. Income-driven repayment plans tailor monthly payments based on a borrower’s financial situation and family size, but borrowers need to demonstrate their continued eligibility periodically.
Compounding the situation are layoffs within the Department of Education, which administers the federal loan program. The StudentAid.gov federal website, responsible for student loans and financial aid, underwent an hours-long outage recently, though the department has pledged to uphold its commitments.
“It’s been one setback after another for student borrowers,” stated Aissa Canchola Bañez, policy director at the Student Borrower Protection Center.
For those holding student loans, it’s vital to stay informed about the available options.
Bañez advises borrowers presently enrolled in income-driven repayment plans to determine their recertification deadlines and explore available options if the online form for income recertification is unavailable.
Recertification serves to verify a borrower’s financial condition. With some forms temporarily unavailable, borrowers who fail to complete this process may face potential dilemmas. However, if they can confirm their income, those already on an income-driven repayment plan should be allowed to remain on it. Abrams suggests keeping screenshots of one’s account status on the student aid website as a precaution.
State-level resources are available for student borrowers, and congressional representatives have teams dedicated to assisting constituents facing difficulties with federal agencies or having trouble contacting federal student loan servicers.
“Approach them with a request like, ‘I need your help to access a suitable repayment option as per the law,'” Bañez recommended. “‘Although the federal department has removed these applications, I require your assistance.'”
Loan servicers must still factor in a borrower’s financial situation despite staff reductions at the Education Department and actions taken by President Donald Trump against the Consumer Financial Protection Bureau, noted Bañez. She emphasized the possibility of requesting temporary forbearance or deferring payments due to financial hardship.
State attorneys general are also available to field inquiries from student borrowers regarding their situations.
Jessica Fugate, a government relations manager for Los Angeles, shared her experience as she approached eligibility for student loan forgiveness under the previously Biden-era Public Service Loan Forgiveness program. This initiative forgives outstanding debts after 120 qualifying payments. She had been looking to transition to an income-driven plan to ensure her payments contributed towards forgiveness, particularly as ongoing court challenges affected her former plans.
“As the most affordable method to manage my loans while working in government in Los Angeles, it is crucial to have those payments count towards forgiveness,” Fugate explained. Despite having submitted an application in January, she was informed of its receipt but not the outcome, facing long waits for further updates on her case.
Similarly, debtor Debbie Breen, who works in Washington and has dedicated over a decade to the nonprofit sector, expressed her concerns. Her progress towards Public Service Loan Forgiveness has been halted due to recent changes. She voiced alarm over potentially unaffordable payments if income-driven repayment plans cease to be an option.
“With two children also bearing student loans, the uncertainty instills fear in them as well,” Breen said, highlighting the shared anxiety among borrowers.
