Student Loans Under Trump: Top 5 Things Borrowers Need to Know Now

The student loan landscape is changing rapidly, creating confusion and stress for millions of borrowers. Many are struggling with rising monthly payments, unclear paths to loan forgiveness, and nowhere to turn for help. With so much uncertainty, understanding the facts can be overwhelming. This blog will break down the latest changes and help you understand your current options.

Understanding the facts is critical. Here’s what you need to know about navigating student loans based on what is publicly known as of March 26, 2025.

Top 5 Things Borrowers Need to Know

1. Applications for Income-Driven Repayment Plans Are Available Again 

• Online Income-Driven Repayment (IDR) plans and consolidation applications reopened today (March 26), however the processing won't start immediately and borrowers may need to wait months for their applications to process. 
• If you’re a borrower looking to enroll in an IDR plan for the first time or switch plans, you can apply online HERE.  It's important to note that until your application is processed, you need to make payments unless your loans are in forbearance.
• If you're already on an IDR plan, you’re lucky. You can continue to benefit from lower payments.
  

2. Recertification of Income Deadlines Have Been Extended 

• Annual income recertification is required to maintain eligibility for reduced payments under an IDR plan.
• However, the DoE has temporarily stopped processing recertifications.
• If you’re currently enrolled in an IDR plan, your recertification anniversary will be extended until at least February 2026.  It may take several weeks for your loan servicer to move your recertification date.

3. Public Service Loan Forgiveness (PSLF) Is Still Available

• Employees working in eligible public service jobs — including non-profit healthcare, public education, and government — can still pursue loan forgiveness under PSLF. 
• Recent actions, however, have made it harder to get started by closing applications to all qualifying IDR plans. Only Pay As You Earn (PAYE), Income-Based Repayment (IBR), Income-Contingent Repayment (ICR) and the Standard (10-year) Plans count toward loan forgiveness.  
• It is important to continue to submit a PSLF Certification Form annually to confirm your qualifying employment and track your progress toward forgiveness. Access the form HERE.

4. Forbearance and Deferment Options Can Provide Temporary Relief

• If you qualify, deferment is typically the better option because it allows you to pause payments without accruing interest on any subsidized loans. Qualification depends on your loan type and personal situation.
• Forbearance also stops payments but comes at a higher cost since interest continues to accrue on all loan types.
• Contact your loan servicer to explore your eligibility for either option.

5. FAFSA® Is Still Open for Federal Student Aid

• Submitting the Free Application for Federal Student Aid (FAFSA®) ensures you remain eligible for federal grants, scholarships, and loans.
• Many states and colleges also use FAFSA data to determine financial aid awards.
• Deadlines vary, so start the process now at studentaid.gov.

Take Action Now

If you’re among the 43% of student loan borrowers behind on payments, it’s essential to act quickly. Consequences for missed payments—including credit score hits, delinquency, and potential wage garnishment—are escalating.

The coming months will bring further developments, so be proactive in managing your loans. Stay updated, review your options, and take steps to protect your financial future.

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