The Donald Trump administration has removed access to the online application forms for several widely-used student debt repayment plans, leaving millions of Americans with outstanding loans with no options. Borrowers seeking to enroll in income-driven repayment plans (IDR), which limit monthly payments based on income, are now unable to submit their applications through the US Department of Education’s website. The online consolidation application has also been taken down.
This sudden action follows a federal appeals court ruling earlier this week that extended the pause on President Joe Biden’s Save program—an income-driven plan designed to forgive debts after just 10 years of payments. Since last summer, Biden’s initiative has been on hold due to a lawsuit filed by a coalition of Republican state attorneys general. Approximately 8 million borrowers who had enrolled in the Save program now find their loans in limbo.
The consequences of this removal are particularly troubling for those already in income-driven repayment plans, as they face uncertainty about how to file their annual income certification paperwork. Furthermore, the timeline for restoring access to these critical payment plan applications remains unclear.
The abrupt cessation of these vital options has raised alarm among debtors and student loan advocates alike. Critics have expressed frustration that the removal of payment plan access was not addressed in prior litigation and have pointed out the Department of Education’s lack of transparency regarding its decision. Instead, the department has opted for a subtle notification via a banner on the StudentAid.gov website.
In response, the Student Borrower Protection Center (SBPC), a non-profit organization focused on alleviating student debt, condemned the administration’s choice. “Shutting down access to all income-based repayment plans is not what the 8th Circuit ordered—this was a decision made by the Trump Administration that will inflict significant hardship on millions of working families,” read their statement. “President Trump campaigned on lower costs, but once again has chosen a path that will ensure the greatest possible harm to the monthly budgets of everyday working families.”
