The Next 4 Years of Student Loans: Major Changes Are Coming

With Trump’s unexpected victory in the popular vote and key swing states, and a likely Republican majority in Congress, significant changes to student loan policies may be on the horizon. We’ll look at possible shifts in Public Service Loan Forgiveness (PSLF) that could make it harder to qualify, and the potential elimination of the Saving on a Valuable Education (SAVE) plan. We’ll discuss recent court rulings that could reshape repayment strategies, like the 8th Circuit Court decision on the Income-Contingent Repayment (ICR) statute. We'll also touch on political dynamics influencing these changes, including Republican and Democratic strategies, the implications of past proposals like the Prosper Act, and what borrowers need to consider moving forward.

Key moments:
00:00 Introduction
04:48 Likely elimination of the SAVE plan — when should you consider switching to a different repayment option?
09:09 Republicans are making their own IDR plan and how past proposals threatened borrowers
20:10 Loan forgiveness potential might be more generous than we think
25:29 Potential for major policy changes under Trump’s second term

#SAVEplan #StudentLoans #StudentLoanPlanner

[driverkpk]

How about everyone pays but do something with the predatory interest rates. Flat 2% and no compounding??

[redpill-finance]

At what point do we hold universities accountable for abusing access to sovereign debt. This entire program has been used as a way to enrich Universities and their constituents. Let’s audit their spending and get tuition down!!

[vladislavfomin]

I just wanted to say thank you for breaking things down and discussing all the possibilities while expressing humility about not knowing exactly where we will go. Thank you, you are my favorite go-to resource!

[NellBell-nb]

Mohela claims they are not processing ANY IBR/IDR/ICR applications at this time so its impossible to switch to the IBR program.

[bethanystoppel]

If he eliminates the Department of Education and goes back to having private banks handling loans then most of this will disappear as options anyway. He doesn't care about following laws, obviously.

[Etharel]

Why does this channel keep telling people to switch to IBR???? THEY ARE NOT PROCESSING ANY PLAN CHANGES

[jonpolen]

Thanks man. Appreciate you breaking this down. Y'all doing great work

[dpo]

Please answer the burning question that everyone is concerned about.... do you think the IDR Account Adjustment will still be completed?

[roguelily]

I'm very scared of losing my IBR. I cannot afford standard payments and I will have to default. I can barely afford with IBR but standard would be absolutely impossible.

[marystockton]

Again Thank you so much for putting this information out, I look forward to it weekly.... Keep up the awesome work!

[bez]

Well what happens if the DOE is abolished? Because that’s what on the chopping block.

[theGHSV]

One important factor in all this which is not addressed in this video: IDR Account Adjustment.

Especially for borrowers who recently consolidated, the question is will we see that adjustment officially hit our accounts before 1/20? Planning on whether to pursue forgiveness or not may be extremely dependent on when/if borrowers get the adjustment they were promised when consolidating.

[urahotmess]

When can we expect the circuit court’s decision? That will definitely determine if I stay on SAVE vs going back to old IBR.

[Workman.darren]

Hey there! This is great information. I have been seeing that the new administration may get rid of the Department of Education. If our loan counts are tied to the department of education, such as the office of Federal Student Aid, what would happen to our loan counts? Servicers aren't allowed to (or so they say) check our loan count for PSLF. What would this do? I have 22 payments left on PSLF and I am getting nervous every time I hear this.

[dolphindddd]

One theory I have, but can't say for sure since I am not a lawyer, is that if the 8th circuit gets rid of most of the ICR statute, it may be a bit easier for a student loan borrower to prove hardship in a bankruptcy court. You should find someone who can look into this theory that I have.

[AsombrosaArabian]

My husband is 5 payments away from 25 year IDR Forgiveness and does not qualify for IBR. Thoughts for us?

[susannewatkins]

Hi, trying to help my niece with her loans, have listened to several of your tapes, still don’t understand very well, nor does she. Considering private counsel with you just to make sure all is in order and correctly done before we pay off the loans. How do I move forward to have that counsel?

[mariapecot]

Im on save and will be at 120 payments next month. At that point I will recertify and then apply for a buyback but am concerned about the timing of things…is there any risk in also applying to IBR as a back up strategy? I have concerns about paperwork being processed after Jan 6…

[christophermattheis]

And yet people are still borrowing money. Stop lending money for education.

[dougspaeth-cook]

@travis can you explain the republican interest/principal subsidies in more detail?