Recent changes to the U.S. student loan system have created confusion for many borrowers. A recent court ruling blocking certain Biden-era programs, combined with the Education Department’s removal of online and paper applications for income-driven repayment plans, has left borrowers unsure of their next steps.
AP News reports that this disruption is affecting individuals who rely on these plans for financial relief. The lack of clarity regarding recertification and other processes has only added to the uncertainty, leaving many concerned about their ability to keep up with loan payments.
What Has Changed for Borrowers?
The Trump administration’s alterations to the student loan system, in response to the February court ruling, have removed some income-driven repayment plan applications, which have been crucial for borrowers experiencing financial hardship.
These changes primarily affect individuals who were seeking to recertify their income in order to stay enrolled in these plans.
“This especially hurts anyone who’s lost their jobs, including federal workers,” said Natalia Abrams, founder and president of the Student Debt Crisis Center.
Challenges Faced by Borrowers
One of the most pressing concerns for borrowers is the removal of recertification forms for student loan repayment plans, which are essential for confirming their financial situations and family sizes.
Without access to these forms, borrowers risk losing their enrollment in income-driven repayment plans, putting them in danger of facing higher monthly payments they may not be able to afford.
“It’s been wave after wave of bad news for student borrowers,” said Aissa Canchola Bañez, policy director at the Student Borrower Protection Center.
Bañez also advised borrowers to stay proactive about their recertification deadlines, stating:
“Get a sense of when your recertification deadline is and get a sense of what options are available to you if the form is not available online to recertify your income.”
For those struggling to navigate the system, Bañez suggested reaching out to legal resources.
“Try saying something like, ‘I need your help to understand how to get into an affordable repayment option, which I’m entitled to under the law.”
Additionally, for those facing financial hardship, Bañez recommended exploring options for
What Should Borrowers do Now?
Borrowers currently enrolled in student loan income-driven repayment plans should take steps to stay informed about their recertification deadlines. Experts recommend contacting loan servicers to confirm what options are available if online recertification forms are unavailable.
For those struggling with the process, reaching out to state representatives and legal resources can provide additional support.
Impact on Public Service Workers
The changes are particularly concerning for public service workers like Jessica Fugate, a government relations manager for the city of Los Angeles. Fugate, who has been working for the government for nearly a decade, was only months away from qualifying for the Public Service Loan Forgiveness program, which forgives outstanding loans after 120 payments. She was hoping to switch to an income-driven repayment plan before the Trump administration’s changes took effect.
“It’s the most affordable option to repay my loans while living in Los Angeles working for the government on a government salary,” said Fugate.
As of February, Fugate was notified that her application had been received but was left unsure about when she would hear back about her approval.
What Are Public Service Workers Facing?
Another public service worker, Debbie Breen, who has worked in the nonprofit sector for over 10 years, is also impacted by the changes. Breen, like Fugate, was in the process of switching to an income-driven repayment plan to have her payments count toward Public Service Loan Forgiveness.
She expressed concern over the loss of this opportunity, saying
“I was months away from ending this nightmare,” she said
“Now I don’t think that’s going to happen. I’m kind of in panic mode because I know that if they stop income-driven repayment plans, I don’t know that I’m going to be able to afford the payments each month.”
