The U.S. Department of Education has resumed processing applications for income-driven student loan repayment plans, following a period of disruption.
This comes after revisions were made to the application process to align with a February ruling. Borrowers had faced delays in submitting applications, but now the system is operational again. However, challenges persist, and advocates warn of potential ongoing issues with processing.
According to AP News, advocates urge borrowers to act swiftly and apply for the repayment plan that suits their financial needs, despite the government’s efforts to address the backlog and restore access to relief options.
Impact of the Pause on Applications
For several months, borrowers faced difficulties with submitting their applications due to the temporary unavailability of online forms.
As income-driven repayment plans take into account a borrower’s financial situation and family size, the lack of forms hindered the ability of some borrowers to complete necessary paperwork, delaying progress toward relief.
Every day these applications go unprocessed deprives borrowers of critical time toward PSLF relief and financial stability – said Yu.
Challenges in the Student Loan Repayment Process
Advocates for student loan borrowers caution that while the application process is now live, delays are still expected.
Looking at the application today, it does appear that everything is back online,
said Sabrina Calazans, Executive Director of the Student Debt Crisis Center. She emphasized the importance of borrowers applying for repayment plans that suit their financial circumstances. “Borrowers should still apply for the plan that works for them,” Calazans added.
Calazans also reminded borrowers that failing to make payments can lead to delinquency and default, and that the removal of certain government programs does not equate to loan forgiveness.
We have heard a lot of people say that if the department is going away, so do their loans. That is not true – she said.
Government Action and Layoffs in Federal Student Aid Office
While the reopening of the application process is a positive development, some experts remain concerned about the lingering issues within the Education Department’s Federal Student Aid office.
The department has been affected by significant layoffs, including over 300 job cuts. However, the Trump administration has assured that these reductions will not impact students and families relying on student aid services.
The fight for student borrower rights continues, with groups like the American Federation of Teachers (AFT) and the Student Borrower Protection Center pushing for reforms.
A joint statement highlighted that while recent actions by the government have restored some borrowers’ rights, many still face challenges due to bureaucratic hurdles.
Took a step because of our lawsuit to restore some borrowers’ rights,
said Randi Weingarten, President of AFT, adding that many borrowers continue to be met with “red tape, backlogs and dead ends.”
Despite these obstacles, advocates urge student loan borrowers to stay proactive in seeking relief and to explore repayment options that best fit their financial situation.
The Education Department’s Federal Student Aid office has been hit hard by layoffs, with more than 300 FSA jobs eliminated.
