Department of Education Suspends Certain Student Loan Forgiveness Programs Following Court Ruling

Department of Education Suspends Certain Student Loan Forgiveness Programs Following Court Ruling

PORTSMOUTH, N.H. — Federal student loan borrowers are facing confusion as the U.S. Department of Education halts the acceptance of applications for some student loan repayment and forgiveness plans.

A federal court order has paused the implementation of the SAVE Plan, along with other income-driven repayment plans aimed at loan forgiveness. These plans calculate monthly payments based on income and family size, offering forgiveness after 20 years of payments.

Those currently enrolled in the SAVE Plan or other affected income-driven repayment programs will now enter general forbearance until payment calculations can be correctly adjusted. During this forbearance period, interest will not accrue, but the time spent in forbearance will not count toward loan forgiveness.

Heather Hoyt, a borrower, shared that her student loan balance has doubled due to accrued interest. While she had deferred payments and consolidated her loans in hopes of forgiveness, this pause could impact her long-term plans. "One thing hinges on the other," she said. "But if this gets thrown in there, that's going to be hard."

The Student Debt Crisis Center, a nonprofit organization, warned that millions of borrowers could be affected by the court's decision. Sabrina Calazans from the center estimated that eliminating the SAVE Plan could raise monthly payments by $200, and without income-driven repayment forgiveness, many borrowers may face indefinite repayment periods.

Hoyt, who has worked hard to rebuild her credit and improve her financial situation, expressed concern that these changes could jeopardize the progress she’s made. "I don’t think it's fair to offer something and then take it away," she said.

Calazans advised borrowers to keep detailed records of their loan balances, payments, and interest rates in case they need to advocate for themselves.

The Federal Student Aid office has provided online resources to assist affected borrowers. While online loan consolidation applications are unavailable, paper consolidation applications can still be submitted.

Tags;

demure,
demure trend,
very demure trend,
give me my money trend,
just give me my money trend,
what is demure trend,
what is the demure trend,
demure meaning,
demure trend meaning,
bta trend,
i love your daughter trend,
gimme my money trend,
nice try diddy trend,
legging legs trend,
hey brother trend,
who started the demure trend,
what is the very demure trend,
where did the demure trend come from,