What student loan forgiveness opportunities still remain under Trump

• Under the Biden administration, the U.S. Department of Education made regular announcements that it was forgiving student debt for thousands of people.
• That's changed under President Donald Trump.
• Here’s what you should be aware of regarding the present state of federal student loan forgiveness options.

During the Biden administration, the U.S. Department of Education took action regular announcements that it was forgiving student debt for thousands of people under various relief programs and repayment plans.

That's changed under President Donald Trump .

In his first few months in office, Trump — who has long been critical of education debt cancellation — signed an executive order aimed at limiting eligibility for the popular Public Service Loan Forgiveness program , and his Education Department revised some student loan repayment plans To no longer result in debt elimination.

"You have the administration trying to limit PSLF credits, and clear attacks on the income-based repayment with forgiveness options," said Malissa Giles, a consumer bankruptcy attorney in Virginia.

The White House did not reply to The News Pulse’s request for input.

Here’s what you should be aware of regarding the present state of federal student loan forgiveness options.

The opportunity for forgiveness diminishes with repayment plan arrangements.

Experts suggest that the Biden administration’s new student loan repayment program, titled Saving on a Valuable Education (SAVE), likely won’t endure should Trump return to office. A U.S. appellate court has already ruled on this matter. blocked the plan in February after a GOP-led challenge to the program.

SAVE came with two key provisions that lawsuits targeted: It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.

"In my opinion, you'll witness SAVE being disbanded either through judicial action or by the administration," Giles stated.

However, the Education Department during the Trump administration contends that the decision from the 8th U.S. Circuit Court of Appeals mandated them to terminate loan forgiveness for repayment plans outside of SAVE. Consequently, neither the Pay As You Earn nor the Income-Contingent Repayment options will erase debts after a specific duration of time has passed.

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There's some good news: At least one repayment plan still leads to debt erasure, said higher education expert Mark Kantrowitz. That plan is called Income-Based Repayment.

If a borrower who has been part of the Income-Contingent Repayment (ICR) plan or Pay As You Earn (PAYE) program later decides to switch to the Income-Based Repayment (IBR), their prior payments made under those different plans will be counted towards loan forgiveness under IBR, provided they satisfy the requirements for IBR. other requirements Kantrowitz stated. (Certain borrowers might choose this approach if their monthly payment under ICR or PAYE is less than what it would be with IBR.)

Public Service Loan Forgiveness is still in place.

Despite Trump ' executive directive in March was designed to restrict access to Public Service Loan Forgiveness The program stays unchanged. Experts indicate that modifications to the program could require several months or more to implement and might necessitate Congressional approval.

The PSLF program, enacted by President George W. Bush in 2007, enables numerous nonprofit and public sector workers to qualify for cancellation of their federal student loans following a decade of making payments.

Moreover, according to consumer advocates, any modifications to PSLF cannot affect past eligibility. This implies that if you have previously worked for or are presently employed by an entity excluded from the program under the Trump administration’s new rules, your previous service will still count toward qualifying periods — at least until these changes become effective.

Currently, the wording of the president's executive order is quite broad. Consequently, it is still uncertain precisely which organizations will no longer meet the criteria for being deemed a qualifying employer under PSLF, according to experts.

However, in his first few months in office, Trump has targeted immigrants, transgender and nonbinary people And those who strive to boost diversity within both private and public sectors. Numerous nonprofit organizations operate in these areas, offering legal assistance or engaging in advocacy and educational efforts.

For the time being, individuals aiming for PSLF should obtain a printed copy of their payment history from StudentAid.gov Or ask for one from their loan servicer. They should maintain a record of the number of qualifying payments they have made so far, advised Jessica Thompson, senior vice president at The Institute for College Access & Success.

"We encourage loan recipients to retain every record related to their payments, payment amounts, and employment verifications to make sure they possess any data that could prove valuable later on," Thompson stated.

Additional loan forgiveness options to explore

Federal student loan borrowers also remain entitled to a number of other student loan forgiveness opportunities.

The Teacher Loan Forgiveness program provides as much as $17,500 in loan forgiveness to individuals who have been employed full-time for two complete and consecutive academic years at a low-income school or educational service agency, along with meeting additional criteria, as stated by the Education Department.

(Note that this program cannot be combined with PSLF; therefore, borrowers should determine which option is best suited for their situation.)

In less frequent situations, you might qualify for complete forgiveness of your federal student loans under Borrower Defense If your school shut down during your enrollment period or if you were deceived by your school or did not receive an adequate education.

Borrowers might be eligible for a Total and Permanent Disability discharge if they suffer from a mental or physical disability that is severe and permanent and prevents them from working. Proof of the disability can come from a doctor, the Social Security Administration or the Department of Veterans Affairs.

With the federal government rolling back student loan forgiveness measures, experts also recommend that borrowers explore the many state-level relief programs available. The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.