Expectations for Student Loans Under the Trump Administration

As I’m sure you’ve seen, the results are in and the Trump Administration is scheduled to take control in early January. Here’s a quick summary of the most critical items we’ve been covering that impact PSLF candidates and organizations.

SAVE Repayment Plan
With the SAVE plan already blocked in court, we assume it will not remain an option; it was already at risk under Biden. Those currently in the SAVE forbearance will likely need to switch to another Income-Driven Repayment (IDR) plan once legal decisions are finalized. We expect IBR and PSLF to remain available as is, as they were passed into law by Congress, but the future of other IDRs remains uncertain.

Could PSLF Be Repealed?
Past administrations have proposed eliminating PSLF as well as capping its forgiveness, but this program remains in all Direct Loan Promissory Notes since 2007 (which we’re sure you all read…). But seriously, this is important because it means that future changes to PSLF will only affect new borrowers. THAT said, the aforementioned legal woes of some IDR plans may impact your PSLF savings moving forward. We will continue to keep you posted; in the meantime, stay the course in your current plan if you’ve already determined its your optimal path to forgiveness.

IDR Account Adjustment
The IDR Account Adjustment remains in progress, with completion expected this Fall. As a reminder, this adjustment provides retroactive credit toward IDR and PSLF forgiveness. We expect (and hope) the current administration will work to complete this as promised before the end of the year  and administration change in January.

PSLF Buyback Program
For those with eligible PSLF payments not qualified, a PSLF Buyback Program was announced earlier this year. This remains an option but hasn’t been rolled out pending the completion of the final IDR adjustment. Since this option is also critical for borrowers in the current SAVE forbearance (because this time doesn’t count towards PSLF the way past pauses have), we expect the “buyback” option to remain available. Borrowers having  “skin in the game” should maintain bipartisan support under Trump; the greater vatiable here will be how much the months will cost to buy back based on available IDR options after the pending court cases.

As always, we’ll keep you updated. For 1:1 support and strategic guidance, our team is here to help:

PSLF Analysis & Support Session: CLICK HERE

BenElevate Clients: If your employer is a BenElevate client, your HR can provide you the link to register with us at no cost.

‘til DEBT do us part,

About Author

Jason DiLorenzo

Jason is the Founder of BenElevate, an early stage fintech company working to address the student debt crisis by bringing to bear tools, expertise, and bespoke solutions to streamline student debt management for borrowers and employers.