Associated Press, by Cora Lewis
NEW YORK (AP) — The Trump administration’s recent changes to student loans have caused some borrowers to complain and confusion.
In response to a February court ruling that blocked several Biden-era programs, the education department has removed online and paper applications for income-driven repayment plans.
“This especially hurts people who lose their jobs, including federal workers,” said Natalia Abrams, founder and president of the Student Debt Crisis Center. “A few months ago, they could have gotten to a zero dollar income-driven repayment plan.”
The removal of application materials also caused confusion regarding the recertification process for borrowers who are already registered in the repayment plan, experts say. Income-driven repayment plans take into account the borrower’s finances and family size when calculating monthly payments, but borrowers must regularly show that they are still qualified.
In addition to uncertainty, there is also layoffs for the education department that oversees the federal loan system. StudentAid.gov, a federal website for student loans and financial aid, stopped for hours on Wednesday, but the department says it will continue to realize its commitment.
“The wave has continued after a wave of bad news for student borrowers,” said Aissa Canchola Banjez, policy director at the Student Borrower Protection Centre.
Here’s the guidance for those with student loans:
Check with your loan servicer to find out what options are
All borrowers currently registered in income-driven repayment plans should “know when your recertification deadline is and get a sense of which options are available if the form is not available online to recertify your income,” Bañez said.
Recertification checks the borrower’s financial situation. Some forms are currently unavailable, and borrowers who are unable to complete the process can be at risk.
Even if the borrower already has an income-driven repayment plan, if he or she is able to recertify his or her income, he or she should be allowed to remain in that repayment plan.
Abrams said it would be a good idea to take a screenshot of the current status of your account on the Student Aid website.
What other resources are available?
State-specific and state-level resources are available to student borrowers. Members of Congress are accused of assisting members if they have issues with federal agencies or are struggling to contact a federal student loan servicer.
Borrowers can contact council representatives and open casework files by going to the website or calling the office.
“Try saying, “I need your help to understand how to get into an affordable repayment option.” It qualifies under the law,” Banes said. “‘Even if this federal department removes these applications, I still need your help.”
Despite the education sector and President Donald Trump dismantling the dismantling of the Consumer Financial Protection Agency, loan services still have to take into account borrowers’ financial situations, Banñez said.
“You can see if you can get a delay in payments for temporary tolerance or financial difficulties,” she said.
The state attorney general has also received inquiries from student borrowers.
What are the affected borrowers saying?
Los Angeles City Government Relations Manager Jessica Fgate said it’s less than a year since the student loan forgiveness under the Biden-era Public Services Loan Forgiveness Program, which allows unpaid loans after 120 payments.
However, due to the ongoing court challenges against her previous payment plans, Fugate wanted to switch to a revenue-driven plan before Trump took office. She applied in January.
“Paying my loan is the most affordable option while living in Los Angeles, where I work for the government on government payroll,” Fugate, 42 said.
As of February, Fugate notified that her application had been received and that she had been notified of her status, but that she did not say she knew whether she was approved or not.
“And when I called recently, the machine said there was a four-hour wait,” she said.
With an income-driven repayment plan, fugate is not sure what her options are and hopes that one day her federal loan will be behind her.
“I’ve been working for the government for nearly ten years. After a lot of that time, you don’t do it for glory,” she said. “I’ve given most of my career back to others. I don’t mind serving people. I feel this is the agreement they’ve made to the public, so we owes it. And it’s a lot of us. And we’re not just numbers.”
Debbie Breen, 56, works for a healthy aging agency in Spokane, Washington. Breen said she has been working in the nonprofit sector for over a decade, with almost every year counting in the forgiveness of public service loans.
Breen was also taking part in the Biden-era save plan. This means that when the court challenged the plan, she was placed in tolerance. Like Fugate, she had planned to switch to an income-driven repayment plan and count her payments to forgive.
“I’ve been away from ending this nightmare for months,” she said. “Now I don’t think that’s going to happen. I’m in a panic mode because I don’t know that if they stop their income-driven repayment plans they can afford to pay monthly.”
Breen said he has two children who also have student loans.
“They’re dealing with the same thing,” she said. “It’s scary. That’s definitely scary.”
The Associated Press is supported by the Charles Schwab Foundation for education and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
Original issue: March 14th, 2025, 2:58pm EDT
