Trump’s student loan changes leave borrowers before increasing repayments Trump Administration

Many of the almost 43 million Americans with federal debt for federal studies see their carefully budgeted monthly payments in the middle of Donald Trump’s educational overhaul in the United States.

In the past few weeks, the Trump administration has closed applications for all income-driven repayment plans (including those that were not blocked according to courts) and limited those who are entitled to forgiveness for public service loans (PSLF). This program awards the government loans and selected non -profit workers after they have completed 10 years of service and have made minimum payments for 10 years.

“The student loan system was broken when President Biden was responsible. Everything we have seen since President Trump is an attempt to deliver fewer rights and fewer resources for working people with debts and to increase the cost of living, ”said Mike Pierce, Managing Director of the Student Lower Protection Center.

“Things are worse than ever, and nothing is on the table that makes life better for people with student loans.”

Jordan, a public English teacher in Redding, California, and his wife, who also works in public education, have student loans of $ 200,000. The couple, who recently welcomed a second child, bought a house to accommodate their growing family. An even higher student loan payment every month was not a consideration when she recorded a mortgage, he said.

“We assume payments of 600 US dollars – that is what Save (saving for valuable training) should do, which we can absorb to a certain extent. But if we submit income -related payments, I don’t know what will happen, ”said Jordan, 37,.

“Today I tried to calculate what will happen and the calculators do not work on the website. I couldn’t even tell you real numbers if I wanted to. “

With a new mortgage and new childcare of more than 15,000 US dollars for the salary of a teacher, Jordan and his family are thin.

He said, “It was alarming, but I tried to get into the Zen mode. I will just move my money and I think you wait for you to find out how I can garnish my wages if I have money at all. I don’t know. What should I do? “

Aaron, a pharmacist in Ohio, was looking for a second job when Trump was elected to prepare for higher monthly payments.

“I’m nervous about it. I basically knew what would happen to the Save plan on the election night. It would disappear. I did a second pharmacist job in which I filled out some (pro -re -nata hours), ”said Aaron, 47,. “I’m still looking for additional hours to try to pick up.”

Aaron picked up around $ 180,000 loans to cover the costs of teaching and living for him and his family. With the Save Plan and PSLF, he expected that he paid $ 700 a month and had his loan awarded after 10 years since he worked for the state. Without an income -related repayment plan as an option, he fears a possible monthly payment of 1,800 US dollars for the next 30 years in a standard extended repayment plan without chance for forgiveness.

“The more you go to school, have an advanced conclusion, the more you earn more about your life. You pay more taxes. Not just income taxes, but property taxes, sales taxes, everything else. So it’s a pretty good business to invest in someone to go to school, ”he said. “I don’t see (credit forgiveness) as a handout, what people try to say:” Well, you know, I didn’t go to school, so I shouldn’t pay for anything. “Yes, but if I told you about all the trains for which I shouldn’t pay for, you could play this game all day.”

Reina Chilton-Mayer is a housewife and supervisor of her disabled young son. Although her husband has had a master’s degree and a stable income for many years, the unstable rental market, together with the costs for maintaining care, left with few options, she said. They and the student loans worth 140,000 US dollars have burdened them so that they are thinking about their debts for the first time.

“I hate to long for something. It could have a career effect for my husband, ”said Chilton-Mayer, 44,. “If you wanted to change the job, there will of course be financial background examinations. So we are not 100% about whether we will do it or not, but at the end of the day it is only important to make ends meet every month. “

Ebrahim Ghazali, the head of pediatrics in a clinic in Springfield, Massachusetts, has only a year left of payments until the rest of his loans were given on PSLF. The recent changes to federal loans of the federal government have made his payments and made it uncertain about the future of his debts.

“With these huge student loans, my payments were almost 2,000 US dollars a month. When I got the Save plan, he brought it to 600 and 700 US dollars a month, which I can budget much better, ”said the 41 -year -old Ghazali.

But now, with the application websites, he said that he was “unable to move down towards forgiveness and with the application page. I can’t restart it in another repayment plan. I am not even sure whether my current employment will count on repayment at this time. “

When the potential shift of the Ministry of Education occurs, Pierce found that “the worst things that could happen at the moment are already happening, and we do not have to wait for the educational department to sleep around the cover chairs on the Titanic”.

“Borrowers have the right to make payments based on their income,” he said. “You have the right to terminate your debts that you work in the public service and these rights were closed by President Trump.”