Student Loan Planner Will Trump and Musk End the Department of Education?
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Feb 11, 2025 Could the disappearance of the Department of Education shake up your student loans? Discover how changes to programs like Public Service Loan Forgiveness and Income-Driven Repayment could impact borrowers. Get pro tips on managing your finances in uncertain times, including strategies for tax filing and when to consider refinancing. The discussion also touches on how political shifts might reshape loan policies and the importance of understanding debt-to-income ratios.
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Department of Ed's Stability
- The Department of Education's elimination is unlikely due to its established nature and size.
- It differs from agencies like CFPB, which are newer and face ongoing legal challenges to their existence.
Potential for Increased IDR Scrutiny
- The Department of Education is likely to be audited, potentially revealing inefficiencies like many borrowers on IDR paying nothing.
- This audit could lead to forced repayments to increase revenue.
Prepare for Income Recertification
- Borrowers should prepare for income recertification, as the government might enforce repayments.
- Consider how your 2024 tax return will be filed to avoid payment spikes.