The US is experiencing a shift in student loan policies as President Joe Biden exits office. Borrowers of the 40 million federal student loans should take proactive steps now to prepare for potential changes under the new administration, led by President-elect Donald Trump.
Understand your remaining relief options, including the Public Service Loan Forgiveness (PSLF) program. Although the SAVE plan is uncertain, PSLF will likely survive due to its legislative basis and widespread support among lawmakers. Borrowers with existing loans can continue working towards forgiveness under this program.
New student loan repayment plans have been introduced, including the Pay As You Earn Repayment Plan and Income-Contingent Repayment Plan. These income-driven repayment plans adjust monthly payments based on income and family size, offering more affordable choices to tackle debt.
For borrowers facing financial struggles, deferments and forbearances may be available. An unemployment deferment is possible if out of work, while economic hardship deferments are offered for those receiving certain federal or state aid. Other lesser-known options include the graduate fellowship deferment, military service deferment, and cancer treatment deferment.
To ensure a smooth transition, it’s crucial to keep loan records up to date. Borrowers should check their loan status regularly and stay informed about any correspondence regarding their loans. Keeping detailed records of loan payments and current balance will aid in resolving any miscommunications or relief claims.
If issues arise with student loan servicers, borrowers can file complaints through the Education Department’s feedback system at Studentaid.gov/feedback or report concerns to Federal Student Aid’s ombudsman.
Source: https://www.cnbc.com/2025/01/02/student-loan-borrowers-take-these-steps-before-administration-changes.html