Trump and student loan forgiveness

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[baddog]

49 minutes ago, Big girl said:

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 President Donald Trump is not forgiving student loans broadly; in fact, his administration has rolled back or limited multiple programs that offered loan forgiveness

. The administration's focus has been on tightening eligibility and resuming loan collections, with the official stance that there will be no mass forgiveness. 

Here is a summary of the changes to student loan forgiveness under the current Trump administration:

• Income-Based Repayment (IBR) resumed: On October 4, 2025, the Education Department resumed loan forgiveness under the long-standing IBR plan, which it had paused over the summer. This restart affects borrowers who have made payments for 20 or 25 years. The department stated that IBR was not affected by legal challenges that blocked other income-driven repayment (IDR) plans.
• Other IDR forgiveness plans are frozen: Due to court injunctions upheld in February 2025, the Biden-era Saving on a Valuable Education (SAVE) plan and other IDR plans like Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) are frozen. Interest accrual resumed for SAVE borrowers on August 1, 2025, and payments made during this period do not count toward forgiveness.
• New Repayment Assistance Plan (RAP): A new law, the "One Big Beautiful Bill Act," signed in July 2025, will replace most existing IDR plans with a new Repayment Assistance Plan (RAP), effective July 1, 2026.
  • Higher payments: For most borrowers, RAP is expected to result in higher monthly payments than previous IDR options, since it is based on gross income rather than discretionary income.
  • Longer repayment: The new plan will require 30 years of repayment before any remaining balance is forgiven.
• Restrictions on Public Service Loan Forgiveness (PSLF): In March 2025, President Trump signed an executive order to restrict eligibility for PSLF. The order directs the Education Secretary to exclude organizations that engage in what the administration defines as "substantial illegal purpose" activities, such as those related to immigration or gender-affirming care.
• Defaulted loan collections resumed: The administration restarted the collection of defaulted student loans in May 2025, ending a five-year pause. This action includes resuming wage garnishments and the withholding of tax refunds.
• No mass forgiveness: The Trump administration has clearly stated its opposition to broad student loan forgiveness, arguing that it is unfair to taxpayers and that borrowers must repay their loans.