President Trump’s Administration has made recent changes to the Student Loan Program
MARYLAND – The recent changes at the Department of Education, have caused some confusion around student loans, and a local expert gives us the breakdown.
SAVE Plan
The Department of Education submitted a court filing addressing married student loan borrowers who file taxes separately, clarifying that spousal income won’t be factored into a borrower’s monthly payments. However, if you’re currently enrolled in the Saving on a Valuable Education or SAVE Plan, your payments could rise.
SBA
Millions of student loan borrowers haven’t made a student loan payment since 2020, and Salisbury Chamber of Commerce President Bill Chambers tells us 42 million Americans hold a federal student loan. “There’ll be far less opportunities, even though civic service, and government service to have these loans either eliminated or partially forgiven.”
Chambers says that Trumps plan won’t make it easy. President Trump, “I’ve decided that the SBA the Small Business Administration, headed by Kelly Loeffler, terrific person, will handle all of the Student Loan portfolios. We have a portfolio that’s very large, lots of loans.”
President Trump shifted the portfolio of roughly $1.6 trillion from the Education Department to the Small Business Administration. Chambers say this could create a strain. “What worries us here at the chamber is, having the SBA be the administrator of these outstanding loan balances, might be a great idea but the SBA is also cutting positions, so how is that going to play out?”
D.O.E.
The White House produced an Executive order that says in part, ” It stops taxpayer funds from subsidizing through loan forgiveness activities that advance illegal immigration, terrorism, child abuse, discrimination, and public disruptions.” Chambers has a suggestion.
“The federal government really ought to think about privatizing the entire student loan program. If you’re a student and possess a loan at either currently a student at Wor- Wic, UMES, or Salisbury University or you’re a graduate of any college/university in the country, Pay close attention to the new rules that will be coming out of the Trump administration.”
President Trump however, disagrees. “For 4 years they said we’re going to cut the debt on colleges and schools and all of those. We’re going to cut the debt, student loans– it failed. All that work, and all that talk for nothing it failed.”
Public Comment
The department of education has invited the public to weigh in on improving the Public Service Loan Forgiveness program, the Pay As You Earn Repayment plan and the Income-Contingent Repayment plan. To calculate your student loan payment options, use the Federal Student Loan Simulator.
Members of the public who want to provide improvement feedback can do so on April 29th at the DOE’s Barnard Auditorium in Washington, or at a virtual hearing on May 1st. Click here to sign up.
