Important Student Loan Updates to Know Before the New Year
As the new administration prepares to take office, significant changes are on the horizon for student loan borrowers. With President Trump returning to the White House, policies introduced under the previous administration are expected to shift, leaving many borrowers uncertain about their repayment plans and forgiveness opportunities. Here’s what you need to know to prepare before the year ends.
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1. The SAVE Plan In Limbo
The SAVE plan is currently unavailable due to ongoing legal challenges. Borrowers enrolled in SAVE are temporarily in forbearance, with no required payments or interest accrual during this period.
To maintain progress toward forgiveness, borrowers should explore alternatives like Income-Contingent Repayment (ICR) or Pay As You Earn (PAYE). These plans are reopening for enrollment starting December 15, 2024, and will remain available until July 1, 2027.
Acting now by transitioning to a different repayment plan can help you avoid disruptions, especially if you’re pursuing forgiveness under programs like (PSLF). Stay informed and consider these alternatives to ensure your repayment strategy stays on track.
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2. Public Service Loan Forgiveness (PSLF) Is Under Scrutiny
While the PSLF program is protected by law and cannot be repealed without congressional approval, discussions about limiting its availability for future borrowers continue. Borrowers currently pursuing PSLF should stay on track, ensuring they meet all qualifying criteria to avoid complications under any future changes. Those not yet enrolled should act now to secure eligibility before policies shift.
3. Income-Driven Repayment (IDR) Programs May Be Restructured
The new administration may consolidate or modify IDR plans, potentially increasing payment percentages or extending repayment terms. Borrowers on IDR plans should monitor policy updates closely and consider locking in their current plan before any changes take effect.
4. Borrower Defense to Repayment Claims May Slow
Borrower defense applications, which provide relief to borrowers defrauded by their schools, are expected to face slower processing times under the new administration. If you’re eligible for borrower defense, submitting your application before January could increase the chances of timely review and approval.
5. Parent PLUS Loans Could Face New Rules
Parent PLUS borrowers may see changes to consolidation strategies, particularly double consolidation, which allows borrowers to access more beneficial repayment plans. If you’re considering this option, acting sooner rather than later could be advantageous.
Watch Out for Payment Errors
Adding to the challenges borrowers face, recent reports reveal that some lenders have pulled incorrect payment amounts from borrowers' accounts. This has caused financial stress and budgeting difficulties for affected borrowers, highlighting the need for vigilance in monitoring your account activity.
What Borrowers Should Do Before 2025
To prepare for these upcoming changes, take these proactive steps:
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Review Your Current Plan: Understand your repayment terms and explore alternatives if you’re on SAVE or other plans at risk of being repealed.
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Submit Any Applications Now: For PSLF credit adjustments, borrower defense claims, or IDR plan enrollment, act before the new year to avoid delays.
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Stay Informed: Monitor policy updates closely as new regulations are introduced.
How TitanPrep Can Support You
Managing student loans during uncertain times isn’t just overwhelming—it could potentially cost you thousands if you don’t have a clear plan. But you don’t have to face it alone. TitanPrep specializes in helping borrowers stay ahead of shifting policies and secure repayment strategies that protect their financial future.
With our proven expertise, we’ve guided Thousands of borrowers toward financial relief, helping them save money and achieve their goals. Whether you’re exploring forgiveness options, adjusting your repayment plan, or looking to lower your monthly payments, our team is here to make the process simpler.