Following Donald Trump's return to the presidency, student loan borrowers now face a transformed repayment environment. Recent legal action has halted the Biden-era SAVE and REPAYE programs, while simultaneously terminating the 25-year income-contingent repayment (ICR) loan forgiveness initiative. Subsequently, online applications for the SAVE and income-based repayment (IBR) programs became unavailable on federal websites.
To discuss what these developments mean for student loan borrowers, student loan expert and author of "How to Appeal for More College Financial Aid" Mark Kantrowitz joins Brad Smith on Wealth.
Kantrowitz calls the current suspension of loan consolidation opportunities and income-driven repayment options "temporary," noting that "the Department of Education has told the loan servicers that they should stop accepting and processing these forms for the next 90 days."
For borrowers currently struggling with payments, alternative relief options remain available, including economic hardship deferment, unemployment deferment, and general forbearance programs. The limited active repayment plans now consist of the standard 10-year plan, graduated repayment structure, and extended repayment options.
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Watch the full video above for further insights from Kantrowitz on how the Trump administration's fiscal priorities will affect student borrowers going forward.
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This post was written by Angel Smith