Are Key Student Loan Forgiveness and Repayment Plans About to See Big Changes?

Got any suggestions for improving the federal student loan program and its forgiveness options? The Department of Education wants to hear them.

The department announced in a press release today that it will invite public feedback on ways to streamline higher education regulations and federal aid programs. It specifically asked for ideas for improving the Public Service Loan Forgiveness (PSLF) program, the Pay As You Earn (PAYE) Repayment plan and the Income-Contingent Repayment (ICR) plan.

“This process will focus on how the Department can rightsize Title IV regulations that have driven up the cost of college and hindered innovation,” Acting Undersecretary James Bergeron said in the press release.

The department will host two public hearings: an in-person meeting on April 29 at the Department of Education’s Barnard Auditorium in Washington, and a virtual hearing on May 1, although the link provided is currently broken.

You can also submit written comments through the Federal eRulemaking Portal at www.regulations.gov. You’ll need the docket ID to search for the document where you can submit your comments. The document has been sent to the Office of the Federal Register but has not yet been scheduled for publication, according to an unofficial copy of the Intent to Establish Negotiated Rulemaking Committees. 

This move to gather feedback may be in response to President Donald Trump’s March 7 executive order to limit eligibility for the Public Service Loan Forgiveness program, a debt relief plan that wipes out student loan balances for eligible teachers, nurses and other public servants after 10 years of on-time payments.

Millions of student loan borrowers have been left in limbo after a federal court blocked the Saving for a Valuable Education debt repayment plan. PAYE and ICR plans are available again after applications were temporarily frozen, but the forgiveness component for both plans is still unavailable. Millions more restarted payments after a pandemic forbearance period ended last fall.

Trump also issued an executive order last month to start dismantling the Department of Education and announced that the Small Business Administration would “immediately” begin handling the entire federal student loan portfolio.

We’ll keep you updated as more details are released.