The Trump administration’s Department of Education abruptly removed two critical applications related to student loan forgiveness and repayment, throwing an already troubled federal student loan system into greater turmoil.
The department took down the online application portal for income-driven repayment, or IDR. IDR plans are repayment programs that allow borrowers to make payments based on a formula applied to their income and family size, with any remaining balance forgiven, typically after 20 or 25 years in repayment. The department also removed the online application to apply for a federal Direct consolidation loan. Both applications are critical for borrowers pursuing lower payments and loan forgiveness through IDR, as well as the related Public Service Loan Forgiveness (or PSLF) program.
The actions by the Department of Education appear to be in response to last week’s sweeping ruling from the 8th Circuit Court of Appeals, which extended and expanded a block on lower payments and student loan forgiveness under several IDR plans. Here’s the latest.
Read more at Forbes.
