{"id":13119,"date":"2025-04-07T20:59:24","date_gmt":"2025-04-07T20:59:24","guid":{"rendered":"https:\/\/finderica.com\/?p=13119"},"modified":"2025-04-07T20:59:24","modified_gmt":"2025-04-07T20:59:24","slug":"we-explain-whats-going-on-with-student-loans-right-now","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=13119","title":{"rendered":"We Explain What\u2019s Going On With Student Loans Right Now"},"content":{"rendered":"\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload clicker_number\" style=\"position: absolute; height: 1px; width: 100%\" alt=\"ScoreCard Research\" data-count=\"104.245.38.58,104.245.38.58, 172.68.175.31\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\"><\/p>\n<p>Among many other questions inspired by the rapid fire actions of President Donald Trump\u2019s final term, many Americans are asking <em>What\u2019s going on with student loans??<\/em><\/p>\n<p>During his tenure, former president Joe Biden launched several plans for broad and targeted student loan relief, inviting critique and legal challenges from Republican-led states and organizations. Biden\u2019s first attempt at forgiveness for low-income borrowers was stopped in court, and his second attempt at broad forgiveness was held up and has been abandoned by the new administration.<\/p>\n<p>Biden\u2019s seemingly successful relief action, the implementation of the Saving on a Valuable Education (SAVE) plan for lower-cost income-driven repayment, has been tied up in courts since last fall. Around 8 million borrowers were able to qualify for the plan before it was put on hold. That leaves our loans \u2014 and our financial plans \u2014 in limbo until the courts and the Department of Education (ED) decide exactly what we owe.<\/p>\n<p>Recent headlines about student loan court cases and actions against the Department of Education, jumbled among the administration\u2019s other actions, make it tough for borrowers to parse exactly how student loan debt will impact our finances going forward.<\/p>\n<p>While some big questions are still unanswered, here\u2019s an overview of the state of federal student loan repayment right now.<\/p>\n<p><em><strong>Make money easier.\u00a0Sign up\u00a0for The SS\u2019s newsletter today.<\/strong><\/em><\/p>\n<div class=\"thepe-top-of-post\" id=\"thepe-1848460249\">\n<div class=\"adBorder\" id=\"thepe-1005441441\">\n<h3>50 Effortless Methods to Boost Your Income This Week<\/h3>\n<p>If you needed extra money, like, yesterday, you\u2019ve come to the right spot.<\/p>\n<p>Our team has compiled a <a href=\"https:\/\/partners.thepennyhoarder.com\/50-ways-sdyn-prt\/?aff_id=384\" target=\"_blank\" rel=\"noopener\">list of creative ways<\/a> you can fatten your bank account this week.<\/p>\n<p>This is a long list, so don\u2019t get overwhelmed. Go ahead and start now, but be sure to bookmark this post so you can easily return later. We\u2019ll keep it updated as offers changes or expire.<\/p>\n<p><a href=\"https:\/\/partners.thepennyhoarder.com\/50-ways-sdyn-prt\/?aff_id=384\" target=\"_blank\" rel=\"noopener\">Check it out!<\/a><\/p>\n<\/div>\n<\/div>\n<h2 class=\"wp-block-heading\"><strong>Income-Driven Repayment Plans Are Still in Effect<\/strong><\/h2>\n<p>Some folks mistakenly believe income-driven repayment (IDR) has been eliminated, but it hasn\u2019t. Plans changed when the Biden administration enacted the SAVE plan, and some elements of these plans are in dispute. But if your loans are already in one of these income-driven repayment plans, it\u2019s still valid:<\/p>\n<ul>\n<li>Pay As You Earn (PAYE)<\/li>\n<li>Income-Contingent Repayment (ICR)<\/li>\n<li>Income-Based Repayment (IBR)<\/li>\n<li>Saving on a Valuable Education (SAVE)<\/li>\n<\/ul>\n<h3 class=\"wp-block-heading\"><strong>What\u2019s new:<\/strong><\/h3>\n<ul>\n<li><strong>SAVE court action:<\/strong> The SAVE plan is being challenged in court and is effectively on hold until decisions are made. While it\u2019s on hold, loans already in SAVE are in an interest-free forbearance \u2014 you don\u2019t owe a monthly payment, and your loans don\u2019t accrue interest.<\/li>\n<li><strong>No new IDR applications:<\/strong> The IDR online application is unavailable, so borrowers can\u2019t apply for a new IDR plan at this time.<\/li>\n<li><strong>IDR forgiveness is on hold:<\/strong> A court order in February prevents ED from granting forgiveness after the 20- or 25-year period stipulated under SAVE, PAYE or ICR. You\u2019ll be moved into interest-free forbearance if you reach the forgiveness milestone for those plans during this hold. (IBR was created by a separate act of Congress that\u2019s unaffected by the court order, and forgiveness is still being processed for that plan.)<\/li>\n<\/ul>\n<p><strong>More From The SS:<\/strong> Get Your Finances Together This Year With One of Our Favorite Budgeting Apps<\/p>\n<div class=\"tph-custom-content-section\">\n<h2 class=\"tph-heading\">Not Sure What&#8217;s Going on With Student Loans? Make Easy Money in the Meantime<\/h2>\n<div class=\"tph-content\">\n<p>You may not know where you stand with student loans right now. It\u2019s scary to not know what\u2019s happening, but if you\u2019re looking for ways to make extra money in the meantime, we can help. These are some of our favorite ways to make quick cash.<\/p>\n<\/div>\n<\/div>\n<h2 class=\"wp-block-heading\"><strong>Public Service Loan Forgiveness Is (Technically) Untouched<\/strong><\/h2>\n<p>Public Service Loan Forgiveness, the relief program for teachers, nurses and other government or nonprofit workers, has been a target for reform by Republicans in Congress. But they haven\u2019t made a move on the program yet.<\/p>\n<p>You can still apply for PSLF once you\u2019ve made 120 qualifying payments (10 years of repayment). Even though your loans must be in an IDR plan to qualify for PSLF, this program is unaffected by the court order blocking forgiveness for IDR plans, because \u201cforgiveness\u201d is explicitly laid out in the law that created it.<\/p>\n<div class=\"adBorder\" id=\"thepe-283671182\">\n<h3>Drowning in Expenses?<\/h3>\n<p>Maybe you\u2019re scrambling after your car broke down. Or you got a medical bill you weren\u2019t expecting. Or inflation has finally pushed your budget over the edge. Take a breath. You don\u2019t need to go it alone.<\/p>\n<p>When money is tight, <a href=\"https:\/\/partners.thepennyhoarder.com\/when-money-is-tight-sdyn-prt\/\/?aff_id=384&amp;aff_sub3=when-money-is-tight-sdyn-prt\/&amp;aff_sub4=191825\" target=\"_blank\" rel=\"noopener\">these resources<\/a> can help you manage unexpected expenses without stress.<\/p>\n<\/div>\n<h3 class=\"wp-block-heading\"><strong>What\u2019s new:<\/strong><\/h3>\n<ul>\n<li><strong>Loans in SAVE could be in limbo:<\/strong> Months spent in forbearance don\u2019t count toward your 120 payments. If you\u2019re due to be eligible for forgiveness in the next few months and your loans are in forbearance under SAVE or for any other reason, consider moving to another payment plan to continue your progress. Considering IDR applications are unavailable, you\u2019ll have to speak with your loan servicer about your options.<\/li>\n<li><strong>PSLF buyback:<\/strong> If you\u2019ve reached 120 months of qualifying employment but your loans were in forbearance or deferment for any of that time because of the pandemic pause or court orders, you can \u201cbuy back\u201d credit by paying what you would have owed during those months, so you can apply for forgiveness. If your payments would have been $0 during those months, you can still apply for the buyback program to be moved toward forgiveness.<\/li>\n<li><strong>Customer service might be hard to come by:<\/strong> The first borrowers became eligible for forgiveness under PSLF during Trump\u2019s first term, and we can extrapolate from that experience that administration of this program is likely to be haphazard. Less than 2% of applicants were approved for forgiveness under Trump. The program was overhauled in 2021, and the Biden administration granted forgiveness to more than 1 million borrowers. Keep your own clear records of eligible employment and payments, and prepare financially to continue payments in case forgiveness takes longer than expected.<\/li>\n<\/ul>\n<p><strong>More From The SS: <\/strong>What is Debt Consolidation \u2014 And Should I Consider It?<\/p>\n<h2 class=\"wp-block-heading\"><strong>The Department of Education Is Intact but Hindered<\/strong><\/h2>\n<h4 class=\"wp-block-heading\"><strong>Trump\u2019s executive order:<\/strong><\/h4>\n<p><strong> <\/strong>On March 20, Trump signed an executive order instructing the Education Secretary \u201cto the maximum extent appropriate and permitted by law, take all necessary steps to facilitate the closure of the Department of Education.\u201d<\/p>\n<p>Neither the president nor anyone in the administration has the legal authority to eliminate the Education Department, because the agency was created by an act of Congress. The Associated Press reported that Republican lawmakers said they\u2019ll introduce legislation to close the department, while Democrats promise to oppose it.<\/p>\n<p>A statement from Secretary of Education Linda McMahon suggested ED will continue to support student loan programs, saying the department \u201cwill continue to support K-12 students, students with special needs, college student borrowers, and others who rely on essential programs.\u201d<\/p>\n<p>However, the order itself said the Education Department \u201cmust return bank functions to an entity equipped to serve America\u2019s students.\u201d The order is otherwise brief and doesn\u2019t include any details on how McMahon might legally facilitate the closure of the department outside of an act of Congress.<\/p>\n<p>What changes might actually come for student loans is unclear at this point. ED, in fact, doesn\u2019t operate like a bank, as the order suggests. Student loans are managed by servicers dedicated to that purpose that coordinate with the department.<\/p>\n<p><strong>More From The SS:<\/strong> <a href=\"https:\/\/partners.thepennyhoarder.com\/smarten-up-americans-prt\/\" target=\"_blank\" rel=\"noreferrer noopener\">Smarten Up, Americans. No Offense But Millions of Us Haven\u2019t Used These Money Secrets<\/a><\/p>\n<h4 class=\"wp-block-heading\"><strong>Layoffs at ED:<\/strong> <\/h4>\n<p>Prior to the recent executive order, on March 11, ED announced a \u201creduction in force\u201d that placed nearly half of the department\u2019s employees on administrative leave beginning March 21 and immediately removed them from their offices due to an alleged security concern.<\/p>\n<p>The announcement of these layoffs was quickly met with a lawsuit against McMahon, which awaits a court date. For context, several other actions by this administration are being challenged in court. Dozens have been blocked by federal courts, including some of those involving mass firings at government agencies. Those cases may be appealed to the U.S. Supreme Court, which recently ruled against Trump\u2019s dismantling of USAID, the first of the cases it\u2019s heard on the administration.<\/p>\n<p>Student loan experts have expressed concern about the department\u2019s ability to continue to process loan, repayment plan and forgiveness applications with a hobbled workforce. You\u2019ll still rely primarily on your servicer for any questions, but you can likely expect delays and confusion as those remaining at the agency attempt to handle the job.<\/p>\n<p><strong>More From The SS: <\/strong>Is InboxDollars A Legitimate Way To Make Money in 2025?<\/p>\n<div class=\"adBorder\" id=\"thepe-1892973514\">\n<h3>We Dare You to Take Control of Your Debt<\/h3>\n<p>Up for a debt challenge?<\/p>\n<p>In 10 days, <a href=\"https:\/\/partners.thepennyhoarder.com\/organize-your-finances-prt\/?aff_id=384&amp;aff_sub3=organize-your-finances-prt\/&amp;aff_sub4=191929\" rel=\"false noopener\" target=\"_blank\">these 10 practical steps<\/a>\u00a0could help you get back on the right financial track.<\/p>\n<\/div>\n<h2 class=\"wp-block-heading\"><strong>Student Loan Delinquencies Are Hitting Credit Scores (Hard)<\/strong><\/h2>\n<p>Some federal student loan borrowers have seen their credit scores unexpectedly plummet since Feb. 1.<\/p>\n<p>Newsweek reported last month on several borrowers whose credit scores had dropped by up to 200 points because of reported activity on student loan accounts. Credit scores are suddenly taking a hit because Feb. 1 likely marked the first day servicers started reporting missed payments since payments were paused due to the pandemic in March of 2020.<\/p>\n<p>That pause ended in October of 2023, but ED under Biden implemented a 12-month \u201con-ramp\u201d period in which payments were due, but missed payments wouldn\u2019t carry the usual consequences \u2014 including credit reporting. That on-ramp period ended on September 30 of last year, so servicers started tallying missed payments as usual. After 90 days, loans are considered delinquent, and servicers can report that to credit bureaus. That 90-day period would have hit at the end of January.<\/p>\n<p><strong>More From The SS: <\/strong>The 28 Best Side Hustles: Our Top Picks to Help You Make More Money<\/p>\n<h3 class=\"wp-block-heading\"><strong>Steps to take<\/strong><\/h3>\n<p>If you\u2019re worried about the impact of student loan payments on your credit score, here\u2019s what you can do:<\/p>\n<ul>\n<li>Check your credit score through an app like Credit Sesame or Credit Karma to see if a student loan delinquency has been reported.<\/li>\n<li>Check your account with your student loan servicer for the status of your loans. You can <a href=\"https:\/\/studentaid.gov\/manage-loans\/repayment\/servicers#your-servicer\" target=\"_blank\" rel=\"noopener\">find out which company services your loans here<\/a>.<\/li>\n<li>If your loans are delinquent or in default, work with your servicer on a plan to get them current. You can usually get loans out of default with a monthly payment that\u2019s much lower than your current payment plan.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\"><strong>Where to Find Help with Student Loans<\/strong><\/h2>\n<p>We\u2019re still waiting for final information on the fate of SAVE plans, forgiveness under IDR, how PSLF will shake out during this term and whether various actions against ED will stand up in court.<\/p>\n<p>In the meantime, keep an eye on the monthly payments you owe. Contact your servicer if you have any questions about your repayment plan or status. Log into your account with your servicer, and make sure your contact information (especially your email address) is up to date \u2014 this is the best way to get updates on any actions that impact the status of your loans.<\/p>\n<p>For the latest updates on SAVE actions, check studentaid.gov\/saveaction.<\/p>\n<p>For help with applying for and repaying student loans, get free advice and guidance from experts at EdVisors or The Institute of Student Loan Advisors.<\/p>\n<p><strong>More From The SS: <\/strong><\/p>\n<div class=\"adBorder\" id=\"thepe-639274532\">\n<h3>Need a Hand With Bills?<\/h3>\n<p>Listen, we know it\u2019s tough out there. But there\u2019s no shame in asking for help.<\/p>\n<p><a href=\"https:\/\/partners.thepennyhoarder.com\/ask-for-money-sdyn-prt\/?aff_id=384&amp;aff_sub3=ask-for-money-sdyn-prt\/&amp;aff_sub4=191831\" target=\"_blank\" rel=\"noopener\">These companies<\/a> make it easy to help yourself and your bank account.<\/p>\n<\/div>\n<p><em>Dana Miranda is a Certified Educator in Personal Finance and author of YOU DON\u2019T NEED A BUDGET. She writes <\/em><a href=\"https:\/\/www.healthyrich.co\/\" target=\"_blank\" rel=\"noopener\"><strong><em>Healthy Rich<\/em><\/strong><\/a><em>, a newsletter about money for misfits.<\/em><\/p>\n<div class=\"thepe-bottom-of-post\" id=\"thepe-389290423\">\n<div class=\"adBorder\" id=\"thepe-884490309\">\n<h3>5 Companies That Send People Money When They\u2019re Asked Nicely<\/h3>\n<p>When you log into your bank account, how do your savings look? Probably not as good as you\u2019d like. It always seems like an uphill battle to build (and keep) a decent amount in savings.<\/p>\n<p>But what if your car breaks down, or you have a sudden medical bill?<\/p>\n<p><a href=\"https:\/\/partners.thepennyhoarder.com\/nice-companies-prt\/?aff_id=384\" target=\"_blank\" rel=\"noopener\">Ask one of these companies to help\u2026<\/a><\/p>\n<\/div>\n<\/div>\n<p>        <!-- ACF Financial Disclaimer --><\/p>\n<p>        <!-- End ACF Financial Disclaimer --><\/p>\n<p>        <!-- Newsletter Signup Form --><\/p>\n<div class=\"mobile-ad-units\">\n<div class=\"unit\">\n<p>                        <img fetchpriority=\"high\" width=\"486\" height=\"437\" src=\"https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125533\/cards-dark.jpg\" class=\"attachment-full size-full\" alt=\"\" decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125533\/cards-dark.jpg 486w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125533\/cards-dark-360x324.jpg 360w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125533\/cards-dark-300x270.jpg 300w\" sizes=\"(max-width: 486px) 100vw, 486px\">\n                                <\/div>\n<div class=\"unit\">\n                                    <a href=\"https:\/\/t.thepennyhoarder.com\/aff_c?offer_id=7631&amp;aff_id=408\" target=\"_blank\" rel=\"sponsored noopener\" class=\"aff_id_override\"><br \/>\n                        <img width=\"486\" height=\"437\" src=\"https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125329\/auto-insurance-light.jpg\" class=\"attachment-full size-full\" alt=\"\" decoding=\"async\" srcset=\"https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125329\/auto-insurance-light.jpg 486w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125329\/auto-insurance-light-360x324.jpg 360w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2025\/03\/18125329\/auto-insurance-light-300x270.jpg 300w\" sizes=\"(max-width: 486px) 100vw, 486px\">                    <\/a>\n                                <\/div>\n<\/p><\/div>\n<div class=\"newsletter-signup-wrapper-for-digioh\">\n<div class=\"col-xs-12 newsletter-wrap flex-row\">\n<div class=\"container flex-container\">\n<div class=\"col-xs-12 new-newsletter-form\">\n<p class=\"text-subheading\">Ready to stop worrying about money?<\/p>\n<p class=\"text-get-daily\">Get the SS Daily<\/p>\n<p class=\"email-privacy-policy-blurb-white\">\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<p>        <!-- End Newsletter Signup Form --><\/p><\/div>\n<p><a href=\"https:\/\/www.thepennyhoarder.com\/debt\/whats-going-on-with-student-loans\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Among many other questions inspired by the rapid fire actions of President Donald Trump\u2019s final term, many Americans are asking What\u2019s going on with student loans?? During his tenure, former president Joe Biden launched several plans for broad and targeted student loan relief, inviting critique and legal challenges from Republican-led states and organizations. Biden\u2019s first<\/p>\n","protected":false},"author":1,"featured_media":13120,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[221],"tags":[3857,469,308,339],"class_list":{"0":"post-13119","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-debt","8":"tag-explain","9":"tag-loans","10":"tag-student","11":"tag-whats"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/13119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13119"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/13119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/13120"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}