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The Trump administration is reportedly considering selling portions of the federal government’s $1.6 trillion student loan portfolio, The Guardian reports. Senior officials in the Education and Treasury Departments have discussed a potential student loan debt sale, focusing on high-performing loans, and have met with financial industry representatives to gauge interest and feasibility, according to the outlet. About 45 million Americans currently hold federal student loans. Experts warn that transferring loans to private investors could limit oversight, borrower protections, and the government’s ability to cancel or forgive debt. Daniel Zibel, vice president and chief counsel at the National Student Legal Defense Network, described the idea as “complex and unprecedented,” as The Guardian notes. He told the outlet, “The system for student debt is incredibly complicated. For the administration to do this in a way that lives up to the protections that exist in the law for student loan...
Student-loan forgiveness resumes for millions of borrowers after months on hold. According to Business Insider, the U.S. Department of Education has resumed processing student-loan forgiveness for people enrolled in income-based repayment (IBR) plans. Over the past week, many borrowers began receiving emails from the department confirming they’ve met the required number of payments and now qualify for loan discharge. The messages, which had the subject line “You’re eligible to have your student loan(s) discharged,” said that the department is working with loan servicers to process the relief “over the next several months.” Income-based repayment is designed to make student-loan payments more manageable by tying monthly payments to a borrower’s income and family size. After 20 or 25 years of consistent payments, the remaining balance is eligible for forgiveness. According to Business Insider, as of mid-2025, about 2 million borrowers were enrolled in IBR plans. The Department of...
Millions of federal student-loan borrowers are stuck in limbo as changes to repayment and forgiveness programs under President Donald Trump’s administration face delays. Advocates and lawmakers warn that if the Department of Education does not speed up its processing, borrowers could soon be hit with unexpected tax bills on debt relief. According to Business Insider, the Department of Education reported that as of July 31, more than 1.3 million income-driven repayment (IDR) applications were pending, along with 72,730 requests for Public Service Loan Forgiveness (PSLF). These backlogs stem from ongoing litigation and policy shifts tied to the administration’s overhaul of student-loan repayment. The delays come at a critical time. A temporary provision in the 2021 American Rescue Plan made student-loan forgiveness tax-free, but that protection expires on Jan. 1, 2026. If borrowers’ forgiveness applications are not processed by then, the amounts forgiven could be taxed as income,...
In the latest twist to the nation’s student debt crisis, the U.S. Department of Education has quietly suspended student loan forgiveness under the Income-Based Repayment (IBR) plan, Forbes reports. According to the outlet, the department confirmed earlier this month that it paused processing student loan discharges for IBR borrowers. This includes those who’ve already reached their 20- or 25-year forgiveness milestone. IBR Is Not Part of the Court Battle — So Why the Pause? IBR forgiveness is not affected by the current lawsuits challenging other federal student loan programs, though it does — like them — determine a borrower’s monthly payment based on that person’s income and family size. According to Forbes, last year, several Republican-led states sued the Biden administration to block the Saving on a Valuable Education (SAVE) plan, a newer income-driven repayment option. Federal courts responded by halting SAVE and forgiveness under two older plans, Income-Contingent Repayment...
President Donald Trump’s administration is moving to overhaul the Public Service Loan Forgiveness (PSLF) program. The proposed changes, according to ABC News, could block debt relief for thousands of public and nonprofit workers, including those who work for organizations supporting immigrant communities, transgender youth, and diversity and inclusion efforts. The Department of Education’s draft rule would allow officials to disqualify entire organizations from PSLF if they’re involved in so-called “illegal activities” the department has defined. Critics argue that the vague language used could become a political tool, particularly against groups focused on equity, identity, or civil rights. “That’s definitely an indicator for me that this is politically motivated and perhaps will be used as a tool for political punishment,” Betsy Mayotte, president of the Institute of Student Loan Advisors and reviewer of the rule, said in an interview with ABC News. What PSLF Was Designed To Do...
Editorial Note: Opinions and thoughts are the author’s own and not those of AFROTECH™. This week, former wrestling promoter and current Education Secretary Linda McMahon published an Op-Ed in the Wall Street Journal announcing the Trump administration’s plans to begin collecting on defaulted student loans. However, as we’re on the brink of experiencing a recession thanks to President Donald Trump’s trade war, this act runs the risk of contributing to an economic slowdown, according to ABC News. Beginning on May 5, around 5 million borrowers who have defaulted on their student loans will be sent to collections. When they are sent to collections, the federal government will seize federal tax refunds, even garnish wages and other forms of income to pay off the debt. Many borrowers cannot afford a student loan payment, which is why they defaulted in the first place. Federal loans also have high interest rates, which this current administration has shown no interest in lowering to...
President Donald Trump has laid off various staffers working at the Department of Education. As AFROTECH™ previously reported, President Trump had interest in dismantling the department. This would greatly reduce its role in the country’s education, which includes managing $1.6 trillion in federal student loan programs, overseeing K-12 school grants, and implementing civil rights law for federally funded schools. “This is an assault on every young American who went to public school like me,” Ro Khanna, U.S. representative from California’s 17th congressional district, said during a February news conference in San Jose, CA. “This is an assault on every American family who has someone who is disabled and needs the IDEA (The Individuals with Disabilities Education Act) program to provide education. This is an assault on every neighborhood in America that has a public school that gets Title 1 funding.” He continued, “This is an assault on every child who gets school lunches in America....
There has been a quick turn of events that will impact millions of borrowers. As AFROTECH™ previously reported, President Joe Biden’s student loan forgiveness plan was given the green light to be put into action on Oct. 2, 2024, by U.S. District Judge Randall Hall, who represents the Southern District of Georgia. NBC News reports the plan had been under a temporary restraining order that was a result of a lawsuit against Biden and Education Secretary Miguel Cardona. It was brought forward by the states of Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio. Hall was willing to allow the temporary restraining order to expire, and this was based on his belief that the Southern District of Georgia order “failed to show an injury that is concrete, particularized, actual, or imminent.” “Without standing, the Court finds it proper to dismiss Georgia as a party to the suit for lack of subject matter jurisdiction and turns to Defendants’ arguments related to venue,” he...
Students and borrowers waiting on President Joe Biden’s student loan forgiveness plan may soon breathe a sigh of relief. According to NBC News, the president’s plan can move forward after a judge ruled Wednesday, Oct. 2, 2024, for a temporary restraining order against it to expire. U.S. District Judge Randall Hall, in his order from the Southern District of Georgia, said Georgia lacked standing to challenge the plan because it did not demonstrate any “concrete” or “imminent” injury. “Without standing, the Court finds it proper to dismiss Georgia as a party to the suit for lack of subject matter jurisdiction and turns to Defendants’ arguments related to venue,” he wrote, per NBC. Hall also concurred with the federal government’s stance that the venue was improper, stating that a plaintiff without standing cannot create a venue where it wouldn’t otherwise exist. He determined that the “most equitable result” would be to transfer the case to a district with the proper venue,...
North Carolina’s Fayetteville State University has landed a whopping donation set to support its students further. WTVD-11 reports that the HBCU received an anonymous donation of $750,000. The donation will aid Fayetteville State University’s free summer school called 30/60/90. The outlet details that the summer school program works to assist students with decreasing their student debt. What’s more, it focuses on students earning their degrees early. According to the summer school program’s website, the scholarship covers two courses or up to seven credit hours for undergraduate students, one course or up to three credit hours for graduate and doctoral students in the College of Education, book rental fees, other fees, and on-campus housing and meals. “The financial aid, they help me,” Deborah Cathcart, a rising sophomore student at Fayetteville State University, said per WTVD-11. She continued, “It helps me so much…this school, they introduce such an easy and just a practical way...
Far before Nia Long could fathom becoming a mother, she was putting in work to ensure that her future children would be able to live out their collegiate dreams. An actress best known for starring in cult classics like “Soul Food,” “The Best Man,” and “Love Jones,” Long is the mother of two sons, 23-year-old Massai Z. Dorsey II and 12-year-old Kez Sunday Udoka. During a fireside conversation hosted by Ally Financial during the 2024 American Black Film Festival, Long opened up about her journey to motherhood and how smart financial savings helped her put her eldest son through college without the help of any loans. At one point during the panel, “Money and Mindfulness: A Conversation with Nia Long,” the actress was asked what her values regarding her finances are. “One of the things is [that] I started saving for my children before I became a mother,” she recalled. “I took $3,000 and I just put [it] in this account. I was like, ‘I’m never touching that.’ And it allowed me to get my...
