Millions of American student loan borrowers are facing sharply increased monthly repayments after Donald Trump's administration closed applications for income-driven repayment plans and restricted eligibility for public service loan forgiveness. The moves have created widespread uncertainty and financial strain among borrowers, many of whom had budgeted carefully under previous plans.
Jordan, a public high-school English teacher in Redding, California, and his wife, also a public educator, have combined student debt of $200,000. They recently bought a house and welcomed a second child. Their monthly payments are set to rise from $600 under the Save plan to an unknown amount after the administration halted the plan. “I couldn’t even tell you real numbers if I wanted,” he said.
Aaron, a pharmacist in Ohio, began seeking a second job after the election. He owes $180,000 and had expected to pay $700 a month under the Save plan with forgiveness after ten years through public service loan forgiveness. Without an income-driven option, he fears payments of $1,800 a month for 30 years with no chance of forgiveness. “I don’t see [loan forgiveness] as a handout,” he said.
Reina Chilton-Mayer, a homemaker and caregiver for her disabled teenage son, said she and her husband are considering defaulting on $140,000 in combined student loans. “It just comes down to making ends meet every month,” she said. Mike Pierce of the Student Borrower Protection Center said: “Things are worse now than they’ve ever been, and nothing is on the table that will make life better for people with student loans.”
