Shifting federal student loan policies leave borrowers wondering what's best | Law of The Land
The Trump administration's changes to available federal student loan repayment plans, along with new Parent Plus loan and graduate school borrowing caps went into effect July 1, leaving many borrowers wondering what's in their best interest as legal challenges against overhaul continue to play out in court.
On Monday's edition of the "Sound of Ideas" hosted by Stephanie Haney, we'll look at the student loan lending landscape in the latest installment of our "Law of The Land" series, where we explore how the law affects our everyday lives.
Currently the Biden-era Saving on a Valuable Education (SAVE) plan is no longer available, causing concern for people who worry about not being able to make higher monthly payments under its replacement, the Repayment Assistance Plan (RAP), which may also increase the so-called marriage penalty for couples who file their taxes together rather than as individuals.
There is some good news for federal loan borrowers who were defrauded, as a lawsuit that was first filed against the Trump administration in 2019 has finally been settled, giving relief to 450,000 people by canceling their student loan debt after they were misled by the schools they were enrolled in.
On the private loan side, experts worry that the rise in online education programs coupled with federal borrowing limits may increase predatory lending practices, as people cobble together financing for their education.
