Student Loan Forgiveness
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X @Forbes
Forbes· 2025-07-11 14:47
The Trump administration got one step closer to implementing sweeping rules that would revoke student loan forgiveness eligibility after the Department of Education completed a series of public hearings last week. (Photo: Saul Loeb/AFP via Getty Images)https://t.co/xtmuIKVPIT https://t.co/hs0QcHWaG7 ...
Trump administration agrees to resume student loan forgiveness. Here's how to apply.
Yahoo Finance· 2024-01-26 22:29
Core Insights - The article discusses the changes to income-driven repayment (IDR) plans and loan forgiveness for federal student loan borrowers due to President Trump's One Big Beautiful Bill (OBBB) [1][16] IDR Plans Overview - Approximately 29% of federal loan borrowers are enrolled in IDR plans, which base monthly payments on a percentage of discretionary income and offer repayment terms of 20 or 25 years [2] - Current IDR plans include Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE) [5][10] Payment Examples - A borrower with $20,000 in Grad PLUS Loans at an 8.9% interest rate would pay $226 monthly under a standard plan, but only $96 under PAYE, with forgiveness after 20 years [3] Future Changes to IDR Plans - Significant changes to IDR plans will take effect in July 2026, transitioning to a single Repayment Assistance Plan (RAP) for new borrowers, requiring 30 years of payments for forgiveness [5][16] - Current borrowers must transition to IBR, RAP, or standard repayment by July 1, 2028, as ICR and PAYE will be phased out [18] Parent PLUS Loan Borrowers - New Parent PLUS Loan borrowers after July 1, 2026, will not be eligible for ICR or loan forgiveness through IDR plans [19] - Current Parent PLUS borrowers must consolidate loans and enroll in ICR before the deadline to maintain eligibility for forgiveness [20]