Trump Administration Challenges Student Loans: New Decisions

New Move Against Students Who Took Loans from Trump Administration

In the United States, the Trump administration has decided to terminate the income-driven repayment program, which was implemented during the presidency of former President Joe Biden and helped millions of debtors in repaying their student loans, as part of an agreement with Republican states.

Statement Regarding the Program's Closure

The U.S. Department of Education announced that new registrations would be halted and pending applications would be rejected, citing the program as "illegal." In the statement, it was noted that the program would be closed as part of the agreement with Republican states and existing debtors would be directed to alternative repayment methods.

Legal Proceedings and Objections

The Attorney General of Missouri, Catherine Hanaway, reminded that in a lawsuit filed in March 2024 with the states of Florida, Georgia, North Dakota, Ohio, Oklahoma, and Arkansas, they argued that Biden’s administration plan was "excessively generous and illegal." Hanaway stated, "The Biden administration’s imposition of taxpayers’ burdens with others' debt was unlawful by ignoring legislative authority."

Devastating Consequences for 8 Million Debtors

The president of the Student Debt Crisis Center, Natalie Abrams, indicated that the decision would have "devastating" consequences for approximately 8 million student loan borrowers. The repayment plan implemented during former President Biden's term had reduced monthly payments for some borrowers to nearly zero.

Current Situation and Statistics

There are approximately 43 million people with student loan debt in the United States, with the total debt exceeding 1.6 trillion dollars. The tightening of debt conditions means new challenges for many students.