Student Borrower Town Hall: Navigating Relief, Repayment, & Your Rights

Last week, the 2025 Community Action Council hosted a Student Borrower Town Hall alongside the Project on Predatory Student Lending (PPSL) and hundreds of borrowers from across the country. Together, we surfaced the real challenges facing student borrowers—covering repayment, relief, and financial impact—and shared practical steps for moving forward.

If you missed it, check out the recording below or learn more in the presentation here. Keep reading for the takeaways on current repayment options, resources for defaulted and delinquent borrowers, and upcoming changes to the federal student loan system. 

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Here are the highlights:

1. Understanding Your Loans & Knowing Who to Trust

• Start with studentaid.gov for federal loan details and applications.

• Request your free annual credit report for a full picture of your loans.

• Find your loan servicer and log into your portal for billing and payment specifics.

2. Learn Your Payment Options

• Discharge (Cancellation)

• Public Service Loan Forgiveness (PSLF)

• Total and Permanent Disability (TPD)

• Qualifications based on VA benefits, SSDI, or certification from your medical provider

• Income-Driven Repayment

• An umbrella term for the four plans (SAVE, IBR, PAYE, ICR) that let you set payments based on income. Learn about the options available here and the future of each plan in our presentation here.

• Consolidation

• Combine one or more federal loans into a new “Consolidation Loan,” unlocking new repayment plans and loan cancellation programs your old loans don’t qualify for. Be aware that this can also eliminate certain benefits and can’t be undone – so research the pros and cons first.

• Deferment & Forbearance

• Short-term pause, but interest often accrues and are not good long-term solutions

• Bankruptcy

• Full or partial discharge on federal and private loans

3. Parent PLUS Reminders

There are special rules for Parent PLUS Borrowers, who are only eligible for IDR through consolidation, and then only ICR. Keep in mind these critical deadlines and reminders:

• Consolidate by June 30, 2026 (Parent PLUS only with Parent PLUS)

• Enroll in IDR by June 30, 2028

• Never mix Parent PLUS with non-Parent PLUS loans

4. Be Aware of Delinquency and Default

• Delinquency: For Direct Loans, you are delinquent after missing a payment, but negative credit reporting happens after 90 days of missed payments. Timelines vary for other loans.

• Default: For Direct Loans, you are in default after 270 days of missed payments. Default has serious consequences, including wage garnishment, tax refund seizures, and potential federal benefit offsets – and also harms your credit.

5. Stay Up-To-Date on Sweet v. McMahon

The Sweet v. McMahon (formerly Cardona) case challenges the Department of Education’s refusal to process borrower defense claims. Since April 2024, the court has been holding regular status conferences to monitor the implementation of $6 billion in settlement relief for the borrower defense  The Department is currently reporting that discharges and refunds are at substantial completion for the Automatic Relief Group and Decision Groups 1 and 2.

• Sweet Class: To receive discharges, refunds where applicable, and deletion of credit tradelines according to set schedule.

• Sweet Post-Class: To receive decisions under 2016 regulations by January 28, 2026.

Q&A Callouts

PPSL attorneys answered a few important and frequently asked questions. Check them out below.

• “Do parents need a separate BD application submitted for Parent PLUS loans, or are they covered under the student's?”  → Yes, the parents have to file a separate BD application to be eligible for relief.

• “I’m in SAVE—what now?” → Stay if you can’t pay, but switch to another IDR plan if you want to progress toward forgiveness.

• “Should I consolidate?” → Only with a clear purpose, and remember to never mix Parent PLUS.

• “Will I owe taxes on discharge?” → Federal tax relief applies through Dec. 31, 2025. Beyond that, consult a tax professional.

The fight for higher education justice continues. PPSL will keep working alongside borrowers to make sure the system works for everyone – because the law is on our side. Stay involved by signing up for PPSL’s newsletter and following us across our social platforms here!

Learn more about our 2025 Community Action Council here, the fight for borrower defense here, and real student stories here.