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Biden Tried To Help You With Your School Loans…But Your Dumbass Voted For Trump…
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Biden Tried To Help You With Your School Loans…But Your Dumbass Voted For Trump…
I understand many of you are upset and anxious about the recent activity around the IDR plans. I don't blame you. For what it's worth here's my speculation as to what comes next and why I think that way.
First - this is all happening because of the court injunction from February 18th. The reason this is affecting ALL IDR plans and not just SAVE is because the injunction required the ED to put the entire regulatory package on hold - not just the SAVE portion. And part of that regulatory package changed the way spouse's were treated in the family size when the borrower files taxes separately. It used to be that in that scenario (for the plans that allowed such a tax filing scenario to not count spousal income) to still use the spouse in the family size. So a borrower on IBR, PAYE or ICR who filed taxes separately could still claim a family size of two. The SAVE regulatory package made it so if you filed separately you couldn't claim the spouse in family size on any plan - so in the scenario above the family size would be one. They can't do that now - either temporarily or permanently remains to be seen. But that's why they had to pause ALL the plans. So this isn't something the current administration did to mess with people or cripple PSLF - it would have happened regardless of who was in office because it's due to the court injunction. If you want to see the rest of this regulatory package that's affected by this injunction you can find it here https://www.govinfo.gov/content/pkg/FR-2023-07-10/pdf/2023-13112.pdf
Remember - we don't know if in the end the courts will just kill SAVE or the whole package. And we don't know if they will permanently kill the forgiveness component of ICR and PAYE (which is not part of the package). But until the court process is over or until the injunction is lifted, the ED isn't allowed to do the things covered by this injunction.
One thing to add - it's possible Congress could end this on their own. If reconciliation goes through before the court process, and reconciliation kills SAVE, it's possible the rest of the package will come back and ICR/PAYE forgiveness will too. Not for sure, but definitely possible. Honestly that's what I hope happens. Reconciliation requires a savings of $330 billion from ED and Workforce spending. Killing SAVE "saves" $123 billion. If the court kills it before Congress can I'll be nervous as to where they go find that $123 billion.
Now - on to what how I think this could play out in the short term for the IDR plans. Short term meaning until this is settled either by the courts or Congress.
First..consolidations are still being processed. You can only submit via paper and with no idr application. So you can still consolidate..but may not be able to get that consolidation on an IDR right away.
I fully expect the ED to extend everyone's recert dates for those already on an IDR. At least everyone due in the next few months. There's no way they just let folks revert to standard or get kicked off their plan. There's zero political value and a lot of political peril for them to let that happen. Remember - both sides of the aisle have constituents with student loan debt. And they extended recerts in the past when there was a barrier to borrowers being able to fulfill this requirement.
I also suspect that they will treat this new pause in processing the same way as the last one. Processing forbearance for a few months then general forbearance if it goes on longer. https://studentaid.gov/announcements-events/save-court-actions I'm unsure about the interest as my read of the injunction is that they can't forgive interest - but I may be reading that wrong.
What I'm unsure about are borrowers trying to change plans or get on an IDR for the first time. Obviously nobody can do that while the form is down. Paper forms submitted now will not be processed. So if you are trying to get on a IDR for the first time now and need to or risk delinquency I recommend either exploring the non-IDR plans (graduated and extended) or request forbearance until we get further guidance.
Buy back rules are not at risk for PSLF. Different regulatory package. https://studentaid.gov/manage-loans...rvice/public-service-loan-forgiveness-buyback The plans themselves WILL be coming back. IBR and ICR are written into federal law. So even in the worst of worlds, the ED has to offer IBR and some form of ICR. IBR forgiveness is also not at risk - but the other IDR plan forgiveness components are as I mentioned earlier.
With that said, the wheels move slowly. It takes time for internal ED to meet with all areas - policy, legal, servicer oversight, IT, etc and think through all the things - then put together communication language to borrowers and vendors/servicers, then get that information out to everyone, then give the vendors time to code and implement. So it could be a few days or maybe even weeks before we see updated guidance or actions (assuming I'm right that this is what will happen). So for those that maybe didn't recertify on time and were due last week or this week or even maybe a few weeks from now - we may very well see people kicked off plans or reverted to standard. IF we do - I'm still not going to panic unless we get to say a month from now and nothings changed or been communicated about my assumptions above.
The IDR plan I think has the most legs for reconciliation is based off of the CCRA from 2024. You can read it here https://www.congress.gov/bill/118th-congress/house-bill/6951/text The proposal would mean only this new IDR plan and the ten year standard would be available to loans made on or after a date after the law was enacted. So all existing loans would still have access to today's plans. If Congress makes changes to the repayment plans, I fully expect it will be for new loans only.
As far as PSLF goes, I'm still not worried about it. I know there's a lot of people that are. But unless and until there's more than a vague "we should look at PSLF" proposal out there and one that actually starts getting debated in the committees I truly don't think it's a target - especially for existing loans. I'm a little worried about the proposal to make all hospitals for profit as that would have the unintended consequence for those employees for PSLF - but frankly the health care industry has such a strong lobbying force and funds, I'll be very surprised if this goes anywhere. But if you're worried - absolutely write your member of Congress and let them know the impact PSLF has and will continue to have.
Remember - we are at the stage of reconciliation where two things happen - they throw everything at the wall to see what sticks - and they often offer outrageous proposals so they can later concede to something that in comparison seems much less outrageous. Does it mean we shouldn't be paying attention? Absolutely we should be - but for stand-alone no detail line items that haven't been pushed robustly in the past, it might be too early to lose sleep over it. That's just my opinion of course. If you don't agree with me that's perfectly ok. But do a girl a favor and disagree with me in a way that isn't ugly. We should all be striving to maintain the ability to have reasonable discussions and debates about policy issues.
Let's see if this same group of people still believe voting doesn't matter and if the so called third parties (who are currently quiet) still appeal to them.As Trump goes after Education Department, staff cuts leave student loan borrowers in the dark
Staffers at the Education Department tasked with fielding complaints from federal student loan holders and resolving their issues were let go in the recent job cuts, one employee told CNBC. At least eight of the fired staffers were working on a total of nearly 800 student loan borrower complaint cases, an employee said.
By Annie Nova, CNBC
March 6, 2025
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As Trump goes after Education Department, staff cuts leave student loan borrowers in the dark
Trump is expected to sign an executive order calling on Education Secretary Linda McMahon to abolish the agency.www.nbcnews.com
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Linda McMahon and President Donald Trump in 2018.
Student loans cant be included in bankruptcy but if they convert these loans to private lenders cant they fall under bankruptcy?
College is expensive because negros could go to pwi. If the end game is whites only education, how would they navigate their way to that conclusion. They’ll forgive the white loans and everyone else will have to sharecropper it.It was stupid to think that loans could get forgiven anyway...and I knew that would never work.
There is no risk when the loans are back by the government.
That is the issue.
Write to your representatives about bringing a bill so that student loans can go into bankruptcy.
If you could put student loans in bankruptcy, the amount for loans would decrease followed by the cost of school.
As far as politics go, both sides are satisfied.
One side gets to "punish" people with bad credit.
The other side gets to walk away from a ludicrous amount of debt and an education.
Student Loan Update: Millions of Borrowers Get Temporary Relief
Published Mar 21, 2025 at 5:17 PM EDTUpdated Mar 23, 2025 at 12:52 PM EDT
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Donald Trump Announces Major Student Loan Change
By Suzanne Blake
Reporter, Consumer & Social Trends
Newsweek Is A Trust Project Member
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Millions of student loan borrowers have gotten temporary relief as income driven repayment (IDR) plan recertification dates have been pushed back.
Borrowers on IDR plans have been waiting for the last month to see if they can keep their monthly payments the same amid President Donald Trump's decision to dismantle the Department of Education (ED).
Newsweek had reached out to the Department of Education for comment via email on Friday.
Why It Matters
Trump directed Education Secretary Linda McMahon to take "all necessary steps to facilitate the closure of the Department of Education and return education authority to the States," according to the White House.
While shutting down the entire department will require congressional approval, the president's executive order will "greatly minimize" the agency, according to White House press secretary Karoline Leavitt.
Borrowers in IDR plans have also seen higher monthly payments amid the changes at the ED, with some reporting monthly payments increasing by hundreds or more.
What To Know
Federal Student Aid announced this week new guidance for loan servicers to move their recertification dates back for those affected by the department's processing pause to at least February 2026.
Borrowers in IDR plans are required to recertify their income and family size every year to calculate their monthly student loan payment.
While IDR applications still are not being processed at this time, borrowers already enrolled in the plans will not see a payment hike as a result of the new guidance.
Former President Joe Biden's administration's Saving on a Valuable Education (SAVE) plans also previously saw their recertification dates extended as the plan faces legal challenges.
Borrowers who are waiting on their submitted applications to be approved for an IDR plan will still be in processing forbearance until application processing is resumed.
Meanwhile, Trump announced on Friday that Kelly Loeffler at the Small Business Administration (SBA) will take over federal student loans from the ED, stating it would go into effect "immediately."
The president added that he believes the student loans will be serviced "much better" by the SBA than in the past.
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President Donald Trump signs an executive order to reduce the size and scope of the Education Department alongside school children signing their own versions, during a ceremony in the East Room of the White House... More Chip Somodevilla/Getty Images
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "For student loan borrowers who are already enrolled under an Income Driven Repayment program, this is a big win. We've seen in recent weeks how headlines have been dominated by borrowers who found their monthly payments to now be dramatically higher due to these programs winding down or completely ending. Pausing recertification efforts until 2026 helps in a number of ways. First, it puts those borrowers at ease and gives them a timeline for recertification. The extension also gives the loan providers additional time to see what proposed government changes will shake out and how they'll impact their processes."
Read more
- Donald Trump posts video of himself facing cheers, boos at NCAA event
- AOC's chances of becoming Democrats' 2028 presidential nominee: Polls
- Mark Carney posts Mike Myers video with subtle dig at Trump's Canada plan
- Republican senator laughs at idea of supporting third Donald Trump term
What Happens Next?
Biden-era student loan forgiveness plans like the Public Service Loan Forgiveness (PSLF) and SAVE continue to be in jeopardy amid Trump's administration's efforts to significantly restrict the ED.
Congressional approval is likely necessary for the ED to be fully dismantled, but the scope of its influence is limited under Trump's executive order issued Thursday.
States are also likely to lose federal funding for K-12 schools. How much each state relies on the federal government varies significantly.
Scumbag Administration.Damn Trump![]()
Charlie Javice convicted of defrauding JPMorgan during $175 million sale of financial aid startup
BY MICHAEL R. SISAK AND LARRY NEUMEISTER
March 28, 2025
https://apnews.com/article/charlie-javice-convicted-fraud-jp-morgan-783cb7b089f6ab5d814c4c0984f0302b
Charlie Javice, the charismatic founder of a startup company that claimed to be revolutionizing the way college students apply for financial aid, was convicted Friday of defrauding one of the world’s largest banks, JPMorgan Chase, out of $175 million by exaggerating her customer base tenfold.
A jury returned the verdict after a five-week trial in federal court in Manhattan. Javice, 32, and her co-defendant, Olivier Amar, face the possibility of decades in prison in a case that has drawn comparisons to Theranos founder Elizabeth Holmes…
Charlie Javice