no more income based repayment plan? this is going to sting a LOT of people if they revoke that. no more forgiveness for public service? can you imagine being 9 years into a 10 year commitment?? Millennials are watching monthly student loan payments skyrocket from $500 to $5000 under Trump: This will 'crash the economy’ | Fortune Many borrowers are facing nightmarish monthly payment jumps due to changes to income-driven federal student loan repayment programs—and it is likely to leave many Gen Zers and Millenials defaulting on their loans. “My payment is going to quadruple,” Ally Rooker shared in a viral TikTok video. Her student loan payment for her public health degree is expected to increase from $250 a month to $900. Last month, a federal judge blocked the Biden administration-era SAVE plan, an income-driven student loan replacement program with 8 million borrowers, claiming it lacked the authority to forgive millions of dollars in debt. In response, the Trump administration paused all applications for income-driven repayment plans and online loan consolidation, leaving some borrowers in limbo struggling to make ends meet.
How Trump’s Presidency Is Impacting Student Loans And Debt Forgiveness Public Service Loan Forgiveness: Trump signed an executive order March 7 that seeks to limit the Public Service Loan Forgiveness program, which allows public servants to be eligible for loan forgiveness after 10 years of service, saying in his order that employees who work for organizations opposed to his policies—like groups that support transgender rights or undocumented immigrants—should not be eligible for the loan forgiveness. Trump's executive order targeting the Public Service Loan Forgiveness program only seeks proposed revisions to the program at this time, and requires Congressional approval, so borrowers who are public servants are not yet affected. SAVE Plan: The Biden-era plan to allow lower monthly payments based on borrowers' income appears finished; the Saving on a Valuable Education (SAVE) Plan was blocked in federal court in February and the Trump administration is unlikely to try to revive it, with one staffer at the Office of Student Aid telling CNN, “We’ve been told ‘SAVE’ is not coming back in any way, shape, or form.” Income-Driven Repayment Plans: The Trump administration also paused applications to other income-driven repayment plans for at least three months, according to a memo obtained by The Washington Post, and suggested other plans based on borrowers’ incomes could also be unlawful. The Education Department’s lawyers will decide when the applications will reopen, CNN reported, noting any income-driven plans that come back “are expected to be more costly for borrowers.”
As i said in another thread, this is war. Class warfare, Trade war, and now we are getting into generational warfare. Im lucky since I had done my 10 years of federal service and was forgiven, although the amount remaining was peanuts. But if this is true about income based repayments, Im all in favor of Medicare and SS cuts to offset. Who gets the priority? A 35 year old trying to take care of their kids or grandpa that is 85 and is about to cross the rainbow bridge? Seems easy to choose to me. Its the impossible decision that has to be made if you are forced into a corner like this admin and the last one had made for its citizens.
I'm mainly just confused trying to keep up with all this stuff, and I think I've probably made like no more than 6 payments since COVID with all the stuff going on, once SAVE went to the courts and got blocked everything went back in deferred status.
Its pretty wild Republicans are like "the president has broad emergency powers to deport and denaturalize people, and reappropriate funds earmarked for other purposes" but on the other hand, if he tries to cancel or modify student loan payments (which is expressly granted in the law), its "going too far." Everything is just made up with these people.
Stuff like this has the ability to really hurt the U.S. middle class. I’m talking doctors, lawyers, etc. but also people upskilling with recent masters degrees in business, biosci, pharmacy, etc. and that doesn’t even count teachers and people working in public health etc. seems like a stupid thing to go after.
