Summary
The Trump administration has changed how the Education Department calculates repayments for public service workers seeking student loan forgiveness. This change affects the cost of buybacks for borrowers using the Public Service Loan Forgiveness (PSLF) program by making them more expensive.
Key Facts
- The change was made by President Trump's administration.
- It impacts the Public Service Loan Forgiveness (PSLF) buyback program.
- Borrowers will no longer use the SAVE plan to calculate buyback payments.
- The new calculations use older repayment plans like Income-Based Repayment (IBR).
- IBR usually requires higher payments than the SAVE plan.
- This affects over 88,000 borrowers who used or considered the PSLF program.
- Borrowers might have to pay more to qualify for loan forgiveness.
- The change applies to deferments or forbearances starting on or after July 1, 2024.
