This article is updated frequently as new student loan policy is announced. Please be sure to check back here for further information as it becomes available.
It's a busy time for student loan borrowers, and there have been many new updates affecting student loans. This article will give brief summaries on the following updates:
- Recent Staffing Cuts at The Department of Education
- New Executive Order Restructuring PSLF
- IDR Application Updates
- Consolidation Application Updates
- Recent Changes to the SAVE Repayment Plan
Recent Staffing Cuts at the Department of Education
On 3/11/25 The Department of Education announced that they were firing more than 1,300 staff members. This move reduced The Department of Education staff by half. It is expected that this is the first move in sweepy change to The Department of Education with more changes to come.
The Secretary of Education, Linda McMahon, has stated that these changes will not affect student loans, and this will not impede the departments ability to carry out its obligations. However, some effects that we are already seeing from borrowers are long wait times to connect to their servicer, and reduced support over the past several months.
We will be updating this article as more information is available.
New Executive Order Restructuring PSLF
On March 8th, 2025, President Trump signed an executive order attempting to begin the process of altering the eligibility terms of PSLF. The eligibility terms for PSLF were set by Congress. Under the Constitution, laws can only be substantively changed through Congress, via amendments or new laws. President Trump cannot alter the Education Department rules governing PSLF with just an executive order.
You can read more about the order here: https://bysavi.zendesk.com/hc/en-us/articles/39145998670739-New-Executive-Order-Around-PSLF-Eligibility
IDR Application Updates
As of February 27th, 2025, The Department of Education has temporarily removed the option to enroll in an Income-Driven Repayment (IDR) Plan, or recertify their current plan, from the StudentAid.gov website. Because of this, borrowers applying for an IDR should expect significantly longer processing times.
You can read more about these updates here: https://bysavi.zendesk.com/hc/en-us/articles/39066156076179-IDR-Application-Updates
Consolidation Application Updates
As of February 27th, 2025, The Department of Education has temporarily removed the option to complete a consolidation application on the StudentAid.gov website, however paper applications will still be processed. Borrowers cannot choose an Income Driven Repayment plan during the consolidation process at this time. Because of this, borrowers applying for a consolidation should expect significantly longer processing times.
You can find steps to complete a paper application here: https://bysavi.zendesk.com/hc/en-us/articles/31885922368147-How-to-complete-a-paper-consolidation-application
Recent Changes to the SAVE Repayment Plan
A recent federal court injunction has barred the Department of Education from implementing parts of the SAVE plan. As a result, borrowers who were already in the SAVE plan by July 17, 2024 will remain in forbearance and do not need to recertify at this time. This SAVE Forbearance will not count towards PSLF or IDR Forgiveness.
You can read more about these changes here: https://bysavi.zendesk.com/hc/en-us/articles/35376505528467-Recent-Changes-to-the-SAVE-Repayment-Plan