The Trump administration’s changes to the student loan system are causing concern among borrowers in the Public Service Loan Forgiveness (PSLF) program. Recent changes affecting the program include the removal of income-driven repayment plan applications from the Department of Education’s website and a court ruling that blocked the Biden administration’s new IDR plan called SAVE. Borrowers in the PSLF program are required to be enrolled in an IDR plan or the Standard Repayment plan.
While the legal challenges against SAVE are ongoing, the Biden administration has paused payments for enrollees through a forbearance, causing some borrowers’ progress toward loan forgiveness to stall. The Education Department is working to ensure all repayment plans comply with the court order and it may take months before applications are available again. Those who switch to the Standard plan will continue to earn PSLF credit, but payments may be too high for some.
The Education Department’s Buyback opportunity allows borrowers to pay for months that didn’t count towards loan forgiveness, such as time spent in forbearances or deferments. It is recommended that borrowers keep records of their payment history and other student loan details, as errors may occur during the transition. Creating a spreadsheet of qualifying payments and regularly filling out the employer certification form can help ensure accurate tracking of progress towards loan forgiveness. Borrowers in the PSLF program are advised to be proactive in managing their loans to avoid potential issues in the future.
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