The delay in the student’s bottom will soon become a greater problem for borrowers

• The Ministry of Education works through the accumulation of income -based payment requests.

• Defenders urge rapid treatment before borrowers face new taxes on the remission of student loans next year.

• Delayed debt dilution was also delayed by income -based payment plans until winter.

The watch is characterized by the management of President Donald Trump to work through Forgiveness of the student accumulation.

Since Trump took office, the Ministry of Education has been handling a large number of income -dependent payment requests and its files in order to forgive the debt, known as re -purchases, linked to additional payments for Public service loan forgiveness The program, before the changes in these plans enter into force next year.

The accumulation of treatment began during the era of former President Joe Biden due to the legal challenges against the income -based payment plan. During the resumption of treatment in early January, the Trump administration filed a lawsuit from defenders of unnecessary delay.

The Ministry of Education said In the presentation of the August court 1.3 million income -dependent payment plans are suspended from July 31, along with 72,730 PSLF requests to obtain credit towards tolerance coming from additional payments. The ongoing accumulated prompted the American Federation of Teachers to amend a complaint that was previously submitted in a collective lawsuit on September 17, and urged the administration to cancel the loans of borrowers who have fulfilled their payment threshold through their payment plans or PLF.

The file said: “On this rate, borrowers may have to wait for years to receive the benefits that must be provided to them.”

This is in particular time, and the deposit added, because the loan through income -dependent payment plans will again be taxed starting from January 1, 2026. It is because the 2021 item in the American rescue plan that made tax exempt is exempt from taxes. Borrowers who search for forgiveness under these plans may face thousands of dollars in tax bills, depending on the late amount, if it is not approved by the end of the year.

Millions of borrowers were loan students in a state Changes in payment plans It was blocked in the “Great Great” Law of Trump. This means that borrowers can face Monthly monthly payments And new taxes on any mitigation next year, while the administration is moving forward with its plan to fix the student loan payment system.

AFT said that one of the plaintiffs had paid her loans for more than 25 years, and despite reaching the threshold of forgiveness, the administration did not address its satisfaction. She continued to pay $ 700 to avoid falling into delinquency, and you will face a tax commitment if her dilution is not treated this year.

Here is what we know about the outstanding changes of borrowers in the federal students ’loans.

Do you have a story to share on student loans? Contact this reporter in asheffey@busINESINSIDERER.

Trump’s Ministry of Education has made it clear that its priority is to ensure that borrowers focus on payment, not forgiveness. In this context, Trump’s spending law reformed the payment system by eliminating the current payment plans and replacing it with two options: a standard payment plan and a new payment plan for payment, which allows the loan remission after 30 years.

The law also emptied former President Joe Biden SaveWhich would allow tolerance after less than 10 years of payments. Department Restart the interest fees For 8 million borrowers, they joined the rescue on August 1, and recommended that registered borrowers turn into a new payment plan, such as income -based payment plan.

However, income -based payment also faces delaying treatment. The administration published a notice during the summer, saying that the continuous litigation with the savings plan is to prevent it from preventing it IBR treatment. He said he is working to ensure a minute of IBR payments – a process that you do not expect to complete until the winter of 2025.

Senator Bernie Sanders led some of his colleagues in Send a message To Linda McMahon, Minister of Education at Trump, about IBR delays. They wrote that if the administration does not act quickly to treat relief, “borrowers who should obtain forgiveness before the end of the tax exemption may face significant tax bills to reduce the debt that should have been granted to them without a punishment.”

Understanding with relief and payment He has borrowers on the brink of the abyss. Justin Kroll, a 42 -year -old borrower registered in Save, previously told Business Insider that he wanted to pay his paid, but the changing policies make this difficult.

“We want to take care of our responsibilities,” he said. “We just want a system that we can count and be able to plan financially for our future and endeavors there.”

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