Student loans have become a major focus following recent changes to student loan reforms previously championed by former President Joe Biden.
According to Forbes, the Trump administration’s Department of Education has taken down the online application portals for income-driven repayment (IDR) plans and federal Direct consolidation loans.
IDR plans allow borrowers to make payments based on their income and family size, with any remaining balance forgiven after 20–25 years. The removal of these applications directly impacts borrowers seeking lower payments and loan forgiveness, including those in the Public Service Loan Forgiveness (PSLF) program.
The department’s decision follows a ruling from the 8th Circuit Court of Appeals that expanded an injunction on reduced payments and loan forgiveness under several IDR plans. This ruling blocks key provisions of the Saving on a Valuable Education (SAVE) plan, as well as forgiveness under income-contingent repayment (ICR) and Pay As You Earn (PAYE), putting those programs at risk. However, the income-based repayment (IBR) plan, which was separately established by Congress, remains unaffected.
Meanwhile, Republican lawmakers are pushing to eliminate the SAVE plan, which had lowered some borrowers’ payments to $0, and to consolidate existing IDR options into two plans for loans issued after June 30, 2024. They estimate this restructuring could save $127.3 billion over a decade. However, an analysis by The Institute for College Access & Success warns that these changes could increase the average student loan payment by nearly $200 per month.
