“Thesis designed by Congress [plans] To ensure that borrowers pay their loans, the Biden administration tried to illegally force taxpayers to pay the bill ”, the Secretary of Education Linda McMahon He said in a statement in July.
McMahon refers to the rescue payment plan promoted by income, which was created by the Biden administration and was so generous in its terms that the courts forced the department to put the plan on the ice, throwing much of the loan program.
The Department of Education has used legal uncertainty about salvation to justify the arrest of cancellation under ICR, Paye and IBR.
IBR was created by Congress and is not being legal challenged. But the department told NPR in July that the questions about the legality of Save had made it difficult to determine the eligibility for cancellation under IBR. As a result, many borrowers who are probably eligible for caneization still have to make payments.
“For any borrower who makes a payment after being eligible for forgiveness, the department will reimburse excessive payments when downloads resume,” the department told NPR in a statement this week. As for when could that be?
The department did not commit to a schedule: “IBR downloads will resume as soon as the department can establish the correct payment count.”
PSLF problems
The borrowers registered in the forgiveness of public service loans (PSLF) have also found delays. According to the judicial records, at the end of last month, the department had an accumulation of almost 75,000 cancellation applications under the PSLF “repurchase” program. That allows borrowers with 10 years of public service verified making qualification payments during the months they spent on tolerance or postponement.
In its modified demand, says the AFT, from May to August, the department received many more requests for repurchases that it processed. Each month, “the department received an average of 9,902 new applications, but only processed an average of 3,604”.
In a statement, the press secretary of the Department of Education, Ellen Kaest, says, with the PSLF “repurchase” program, the Biden administration was guilty of “arming a legal high plan for political purposes. The department is working on its Clogy Bacwogy clothes required 120 qualified employment payments.”
Processing these repurchase applications can take a long time, and the move of the Trump administration to Cut the Federal Student Assistance Office for half It may have slowed your efforts.
On January 1, 2026, tax changes will not apply to the forgiveness of the public service loan.
Many borrowers run the risk of non -compliance
More than 7 million borrowers are registered in Save and have not been forced to make payments, but the Trump administration Recently resumed interest accumulation In these loans, looking for Thrust borrowers In alternative plans.
But Judicial records show Registering in an alternative has a slow leg for months. In February, the department stopped temporarily accepting requests for all payment plans dependent on income, and thought it has resumed, more than one million were still pending at the end of August.
The Kaet of the Department of Education tells NPR that this Portfolio of Begen Begen orders for the previous administration, and that the department “is actively working with federal student loans and hopes to clear the Biden portfolio in the coming months.”
Amid all this confusion and uncertainty, the data suggest that many federal student loan borrowers They are not paying their loans.
“One in three federal student loan borrowers who are reimbursed at this time are at some crime,” says Daniel Mangrum, research economist of the Federal Reserve Bank of New York.
Which means that millions of borrowers now have a serious risk of non -compliance.
