The U.S. Education Department has resumed accepting online applications for income-driven repayment plans aimed at student loan borrowers. This move came after a hiatus prompted by a court decision in February which halted the Biden administration’s Saving on a Valuable Education Plan along with parts of other income-driven repayment initiatives.
The removal of these materials complicated the renewal process for individuals already engaged in such repayment schemes. The American Federation of Teachers initiated a lawsuit to compel the department to process applications for these repayment plans.
There were delays in processing that affected borrowers, notably those in the Public Service Loan Forgiveness program, explained Persis Yu, deputy executive director for the Student Borrower Protection Center, which assisted the plaintiffs in the case.
“Each day without processing these applications robs borrowers of essential time towards PSLF relief and financial stability,” noted Yu.
According to James Bergeron, acting undersecretary at the Department of Education, the Trump administration was tasked with revising the application for income-driven repayment plans to align with the court ruling. During the suspension of the online application system, the paper application process remained uninterrupted.
The income-driven repayment plans adjust monthly payments based on the borrower’s financial situation and family size, but a periodic review is required to ensure continued qualification. The unavailability of forms hindered some borrowers from completing these necessary validations.
Supporters are advising applicants to brace for possible delays in processing as applications are being accepted once again.
“I looked at the applications today, and it seems everything is operational again,” stated Sabrina Calazans, executive director of the Student Debt Crisis Center. “Borrowers should apply for the plan best suited to their needs.”
She emphasized that despite changes within the Education Department under the Trump administration, borrowers should still actively manage their student loans to avoid delinquency and defaults.
“Many people mistakenly believe that the disappearance of the department means their loans will vanish too. This is incorrect,” Calazans pointed out.
AFT President Randi Weingarten, in a joint statement with the Student Borrower Protection Center, stated the government made efforts due to the lawsuit to restore certain borrower rights, yet many continue facing obstacles such as “red tape, backlogs, and dead ends.” The Federal Student Aid office within the Education Department has experienced significant staffing cuts, with over 300 positions eliminated. Despite these reductions, the Trump administration claims students and families will not be affected.