Millions of student loan borrowers have gotten temporary relief as income driven repayment (IDR) plan recertification dates have been pushed back.
Borrowers on IDR plans have been waiting for the last month to see if they can keep their monthly payments the same amid President Donald Trump‘s decision to dismantle the Department of Education (ED).
Newsweek had reached out to the Department of Education for comment via email on Friday.
Why It Matters
Trump directed Education Secretary Linda McMahon to take “all necessary steps to facilitate the closure of the Department of Education and return education authority to the States,” according to the White House.
While shutting down the entire department will require congressional approval, the president’s executive order will “greatly minimize” the agency, according to White House press secretary Karoline Leavitt.
Borrowers in IDR plans have also seen higher monthly payments amid the changes at the ED, with some reporting monthly payments increasing by hundreds or more.
What To Know
Federal Student Aid announced this week new guidance for loan servicers to move their recertification dates back for those affected by the department’s processing pause to at least February 2026.
Borrowers in IDR plans are required to recertify their income and family size every year to calculate their monthly student loan payment.
While IDR applications still are not being processed at this time, borrowers already enrolled in the plans will not see a payment hike as a result of the new guidance.
Former President Joe Biden‘s administration’s Saving on a Valuable Education (SAVE) plans also previously saw their recertification dates extended as the plan faces legal challenges.
Borrowers who are waiting on their submitted applications to be approved for an IDR plan will still be in processing forbearance until application processing is resumed.
Meanwhile, Trump announced on Friday that Kelly Loeffler at the Small Business Administration (SBA) will take over federal student loans from the ED, stating it would go into effect “immediately.”
The president added that he believes the student loans will be serviced “much better” by the SBA than in the past.
Chip Somodevilla/Getty Images
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “For student loan borrowers who are already enrolled under an Income Driven Repayment program, this is a big win. We’ve seen in recent weeks how headlines have been dominated by borrowers who found their monthly payments to now be dramatically higher due to these programs winding down or completely ending. Pausing recertification efforts until 2026 helps in a number of ways. First, it puts those borrowers at ease and gives them a timeline for recertification. The extension also gives the loan providers additional time to see what proposed government changes will shake out and how they’ll impact their processes.”
What Happens Next?
Biden-era student loan forgiveness plans like the Public Service Loan Forgiveness (PSLF) and SAVE continue to be in jeopardy amid Trump’s administration’s efforts to significantly restrict the ED.
Congressional approval is likely necessary for the ED to be fully dismantled, but the scope of its influence is limited under Trump’s executive order issued Thursday.
States are also likely to lose federal funding for K-12 schools. How much each state relies on the federal government varies significantly.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
