Slate News What Next | What Happens To My Student Loans Now?
Mar 26, 2025
Danielle Douglas-Gabriel, a higher education reporter at The Washington Post, dives into the chaos surrounding student loans amid changes in the Department of Education. She discusses the fallout from Trump's executive order aimed at dismantling the department, leaving over 40 million borrowers in limbo. The conversation highlights the challenges of repayment options, particularly the problematic SAVE plan, and explores the emotional toll on frustrated borrowers. Danielle underscores the urgent need for systemic reform to enhance educational access and support for future students.
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FAFSA Website Downtime
- The FAFSA website, crucial for student loans, experienced intermittent downtime for about four hours.
- This was linked to the dismissal of a tech team responsible for managing the site's vendors, highlighting the impact of staff reductions.
Trump's Plan for Education Department
- President Trump announced his intention to eliminate the Department of Education, impacting student loan administration.
- He plans to move the student loan portfolio to the Small Business Administration, despite its capacity limitations.
Student Loan Repayment Challenges
- Due to legal challenges, access to income-driven repayment plans is currently frozen, potentially reverting borrowers to the standard 10-year plan.
- Borrowers struggling with payments are advised to request hardship forbearance from their loan servicer.