Student Loan Forgiveness Changes

Changes to the Public Service Loan Forgiveness program may make it more expensive for some borrowers to access debt forgiveness. The new policy, introduced by the Trump administration, affects borrowers who use the buyback option to get their debt cleared. The changes may lead to higher bills for borrowers who have missed payments due to forbearance or deferment. The Education Department will no longer calculate offers using the SAVE plan for borrowers who had a deferment or forbearance on or after July 1, 2024. A key date to watch is the implementation of the new policy, which could have a significant impact on borrowers who are relying on the Public Service Loan Forgiveness program. Borrowers should review their options and consider submitting a buyback request before the changes take effect to minimize their costs.