Student Loan Planner What the Stop Work and Dept of Ed Closure Order Mean for You
Mar 11, 2025
A potential shutdown of the Department of Education has put loan processing on hold, causing concern for borrowers awaiting repayment plan approvals and forgiveness updates. The discussion dives into the implications of this disruption on student loan strategies. It also highlights the historical push to close the department since 1979 and emphasizes the importance of borrower awareness during this chaotic time. Listeners are advised on how to navigate their applications amidst this uncertainty, encouraging a cautious approach.
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Department of Education Closure
- Republicans have wanted to close the Department of Education since 1979.
- Student loan policy isn't their main priority, though.
Impact of the Stop-Work Order
- The stop-work order affects income-driven repayment (IDR), forgiveness, and consolidation.
- The Department of Education is using a court ruling as justification to potentially restrict SAVE plan and other options.
House GOP Budget Bill
- The House GOP is pushing a budget reconciliation bill to address expiring Trump tax cuts.
- This bill aims for $300 billion in student loan program savings, including potentially ending the SAVE plan and future forgiveness.