Trump’s Student Loan Forgiveness Program Halted: What Students and Recipients Should Know
On August 12, 2020, the U.S. Department of Education announced that it would no longer accept applications for student loan forgiveness under the Student Temporary Exemptions with Forbearance program, also known as the "Borrower’s Defense to Repayment" (BDR) program. This decision comes after the Trump administration announced that it would stop accepting new applications for the program, effective immediately.
What is the Borrower’s Defense to Repayment (BDR) program?
The BDR program allowed students to apply for loan forgiveness if they attended schools with invalid, misleading, or deceptive marketing practices, leading to their inability to complete their education or earning a degree. If approved, borrowers could potentially have up to 100% of their federal student loans forgiven.
Why did the Trump administration stop accepting applications?
The Trump administration cited a filing by the department’s Office of Inspector General (OIG) that questioned the program’s legitimacy, citing concerns about its viability and the millions of dollars spent so far on administrative costs. The administration also claimed that the program’s structure was too flawed and vulnerable to fraud.
What does this mean for students and recipients?
For those who had already filed applications, the Department of Education will continue to process and review their claims. However, new applications will no longer be accepted, and existing applications may be denied or delayed. Those who had previously received approval or had their loans forgiven under the program will not be affected.
What can students and recipients do next?
If you had already submitted an application under the BDR program, here are some steps to consider:
- Monitor your email and mail: Keep an eye on your email and mail for updates on your application status.
- Contact the Department of Education: If you have questions or concerns, reach out to the Department of Education’s Federal Student Aid Information Center at askfactors.gov or call 1-800-4-FED-AID (1-800-433-3243).
- Review other possible options: There may be other options for loan forgiveness, such as Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness (TLF). Research these programs to see if you may be eligible.
- Stay informed: Keep up-to-date with developments on potential changes to federal student loan programs and interest rates.
As the student loan landscape continues to evolve, it’s crucial for students and recipients to stay informed and proactive in managing their education debt. If you have any questions or concerns, don’t hesitate to seek guidance from the Department of Education or a financial advisor.
Conclusion
The halting of the BDR program may be a setback for some, but there are still opportunities for loan forgiveness and relief available. By understanding the current landscape and exploring alternative options, students and recipients can take control of their financial future. Stay vigilant, and stay informed.
