Forgiveness for some but maybe not for others is what President Donald Trump’s student loan forgiveness plan is amounting to, which is sowing uncertainty for borrowers, experts said.
In a big win for borrowers last month, the Department of Education agreed with the American Federation of Teachers to process student-loan forgiveness applications for borrowers who reached payment thresholds on an income-contingent repayment plan or the Pay As You Earn plan as long as the plans remain in effect. Trump plans to phase out the plans by July 1, 2028. Income-based repayment plans also are eligible for forgiveness.
Celebrations quickly faded when less than two weeks later the department issued a rule critics say would curb Public Service Loan Forgiveness (PSLF). The rule, effective July 1, allows ED to exclude forgiveness for those who work at organizations it believes engage in “criminal activity.”
Read more at USA Today.
