New York – He Trump administration Recent changes to student loans are causing frustration and confusion to some borrowers.
In response to a February court ruling that blocked some biden era programs, the Department of Education It has eliminated online and paper requests for income -based payment plans.
“This especially harms anyone who has lost their works, including federal workers,” said Natalia Abrams, founder and president of the Student Debt Crisis Center. “A few months ago, they would have been able to obtain a reimbursement plan based on the revenue of zero dollars.”
The elimination of application materials has also caused confusion around the rectification process for borrowers who are already registered in payment plans, experts say. Income -based payment plans take into account the finance and size of the family of the borrower in calculating the monthly payments, but the borrowers must periodically demonstrate that they still qualify.
In addition to uncertainty dismissals in the Department of Educationwhich supervises the federal loan system. The Federal Website for Student Loans and Financial Aid, Studentaid.gov, suffered a interruption of hours On Wednesday, but the department has said that it will continue to fulfill its commitments.
“It has been a wave after wave of bad news for borrowing students,” said Amsa Sanghola Bañez, policy director of the student protection center.
Here is some orientation for those with student loans.
All borrowers currently registered in Revenue Payment Plans must “have an idea of when their deadline for recertification is and have an idea of what options are available if the form is not available online to rectify their income,” Bañez said.
Recertification confirms the financial situation of a borrower. With some currently available forms, borrowers who cannot complete that process could be in danger.
If the borrowers are already in a income -based payment plan, they should still be allowed to remain in that payment plan if they can rectify their income.
Abrams said it is also a good idea to take screenshots of the current state of your account on the Student Help website.
The specific resources of the state state already available for borrowing students. Congress members have teams responsible for helping constituents if they have problems with a federal agency or struggling to contact a federal student loan administrator.
The borrowers can communicate with their representatives in Congress and open a social work file going to their website or calling their office.
“Try to say something like: ‘I need your help to understand how to enter an affordable payment option, to which I am entitled under the law,” Bañez said. “‘Although this federal department has eliminated these requests, I need your help.”
Despite the thinning of the Department of Education and the dismantling of President Donald Trump of the Consumer Financial Protection OfficeLoan administrators must still consider the financial situation of a borrower, Bañez said.
“You can see if you can get temporary tolerance or a postponement of payments for financial difficulties,” he said.
State general prosecutors also receive consultations with borrowing students.
Jessica Fugate, Government Relations Manager of the City of Los Angeles, said it was less than a year of forgiveness of student loans under the public service loan forgiveness of the Biden era, which forgives outstanding loans after 120 payments.
However, with an ongoing judicial challenge to his former savings payment plan, Fugate hoped to change to a income -based plan before Trump assumed the position. She requested in January.
“It is the most affordable option to pay my loans while living in Los Angeles who work for the Government with a government salary,” said Fugate, 42. “And it would mean that my payments counted for forgiveness.”
As of February, Fugate notified that his request was received and that he had been notified from his status, but did not say when he would know if he was approved.
“And when I called recently, the machine said there was a four -hour wait,” he said.
With payment plans based on Limbo, Fugate is not sure what your options are and you hope to have your federal loans behind it.
“I have been working for the government for almost 10 years. After that time, you don’t do it for glory, ”he said. “I have spent most of my career gathering other people. I don’t care to serve people. I feel that this was an agreement they made with the public, for what we are owed. And we are many of us. And we are not just numbers. “
Debbie Breen, 56, works at an agency on healthy aging in Spokane, Washington. Breen said he has worked in the non -profit sector for more than 10 years and that almost all those years had for the forgiveness of public service loans.
Breen was also in the rescue plan of the Biden era, which means that it was placed in tolerance when the challenge of the court was maintained to that plan. Like esfugate, he had planned to change to a income -based payment plan so that his payments count for forgiveness.
“I was months to finish this nightmare,” he said. “Now I don’t think that will happen. I am in panic mode because I know that if they stop the reimbursement plans driven by income, I do not know if I will be able to pay the payments every month. “
Breen said he has two children who also have student loans.
“They are dealing with the same,” he said. “It’s scary. It is absolutely terrifying. “
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