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The Donald Trump administration has taken down the online application form for several popular student debt repayment plans, causing confusion among borrowers and likely creating complications for millions of Americans with outstanding loans.
Those seeking payment plans are unable to access the applications for income-driven repayment plans (IDR), which cap what borrowers must pay each month at a percent of their earnings, as well as the online application to consolidate their loans on the US Department of Education website.
The quiet removal came after a federal appeals court decision earlier this week that continued a pause on Joe Biden’s Save program, an income-driven plan for loan forgiveness that would have forgiven debts after as few as 10 years of payments.
Biden’s Save program has been on hold since last summer after a group of Republican state attorneys general brought forward a lawsuit against the forgiveness features. As a result, about 8 million borrowers who enrolled in Save before it was halted currently have their loans in limbo as the litigation is ongoing.
It is currently unclear how borrowers who were already enrolled in income-driven plans are supposed to submit their annual paperwork to certify their incomes. It is also uncertain when or if the payment plan applications will be back up on the website.
The continued setbacks in the path towards student loan forgiveness has caused concern among those with debt, and loan forgiveness activists. Critics also point out that removing payment plan options was not a part of the previous litigation.
There is also criticism towards the Department of Education’s decision to quietly remove the applications rather than announcing it, with the department opting instead to post a banner on StudentAid.gov.
The Student Borrower Protection Center (SBPC), a non-profit dedicated to eliminating student debt in the US, released a statement in response to the sudden removal.
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“Shutting down access to all income-based repayment plans is not what the 8th Circuit ordered—this was a choice by the Trump Administration and a cruel one that will inflict massive pain on millions of working families,” the statement says.
It goes on to say: “President Trump campaigned on lower costs, but once again has chosen a path that will ensure the greatest possible harm to the monthly budgets of everyday working families.”
