What has changed with student loans under Trump

As of early 2025, the Trump administration has paused several student loan programs and reversed some policies from the previous administration. The most significant change is the halt of the Public Service Loan Forgiveness (PSLF) Limited Waiver, which had allowed borrowers to count past payments toward forgiveness even if they were made under the wrong repayment plan. That window closed in October 2023, but the administration has also frozen new income-driven repayment plan enrollments and suspended the SAVE repayment plan, which offered the lowest monthly payments available.

The administration has also ended the pause on federal student loan payments that began in March 2020. Borrowers are now required to resume making monthly payments on federal loans. Interest accrual has resumed, and late payments can again affect your credit score.

These changes do not affect private student loans, which are issued by banks and other lenders rather than the federal government. They also do not automatically cancel any debt you already owe — they change how you pay it and what programs you can use to reduce or forgive it.

Key Takeaways

  • Federal student loan payments are no longer paused and interest is accruing again, so you must resume making monthly payments or contact your loan servicer about a payment plan.
  • The SAVE repayment plan is currently frozen, meaning you cannot enroll in it, though borrowers already enrolled may keep their current terms depending on their servicer.
  • Public Service Loan Forgiveness under the Limited Waiver ended in October 2023, so you can no longer count past payments made under the wrong plan toward forgiveness.
  • Income-driven repayment plan enrollments are paused, so you cannot switch to a new income-based plan right now, though existing enrollments remain in effect.
  • Private student loans are not affected by these federal policy changes and continue to operate under their original terms.

What happened to income-driven repayment plans

Income-driven repayment plans tie your monthly payment to what you earn rather than to the total loan balance. There are four federal income-driven plans: PAYE (Pay As You Earn), REPAYE (Revised Pay As You Earn), IBR (Income-Based Repayment), and ICR (Income-Contingent Repayment). Under the Trump administration, new enrollments in these plans are currently frozen.

If you are already enrolled in an income-driven plan, your enrollment typically remains active and your payment amount stays the same until you are required to recertify your income. Recertification usually happens once per year. When you recertify, your servicer will recalculate your payment based on your current income. However, because new enrollments are paused, you cannot switch from one income-driven plan to another or enroll in a plan for the first time right now.

The SAVE plan, which was introduced in 2023 and offered the lowest monthly payments of any federal repayment option, is also frozen. Borrowers already in SAVE may keep their current payment amount, but the plan is not accepting new enrollees. If you want to move to an income-based plan while SAVE is frozen, you may be able to enroll in PAYE or IBR instead, depending on your loan type and your servicer's current policies — contact your servicer to ask what options are available to you.

How the payment pause ending affects you

The payment pause that began in March 2020 ended in September 2023, and borrowers have been required to make monthly payments since then. If you have not been making payments, your account is now in default or delinquent status, which damages your credit score and can trigger collection actions by your loan servicer.

If you stopped paying during the pause and have not resumed, contact your loan servicer immediately. You can reach them through your account on StudentLoans.gov or by calling the number on your loan statement. Tell them you want to set up a payment plan. Most servicers will work with you to create a plan that fits your budget, even if you have missed payments. You may also be able to request a forbearance or deferment, which temporarily pauses your payments while you get back on your feet.

Interest is now accruing on all federal loans again. This means your loan balance grows each month by the interest that accrues. If you make a payment, part of it goes toward interest and part toward the principal (the amount you originally borrowed). The longer you wait to pay, the more interest accumulates.

Public Service Loan Forgiveness and the Limited Waiver

Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance on your federal student loans after you make 120 may have access to payments while working full-time for a government agency or a nonprofit organization. The Limited Waiver, which ran from October 2021 to October 2023, allowed borrowers to count payments made under the wrong repayment plan or with the wrong loan type toward the 120-payment requirement.

The Limited Waiver has ended. If you did not submit your PSLF form during that window, you can no longer use the waiver to count past payments. However, PSLF itself still exists. You can still pursue forgiveness by making 120 may have access to payments going forward. To do this, you must work full-time for a government employer or a nonprofit organization, be enrolled in an income-driven repayment plan (once enrollments resume), and submit a PSLF form to your servicer every year or whenever you change employers.

If you work in public service and want to track your progress toward PSLF, use the PSLF Help Tool on StudentLoans.gov. This tool shows you how many may have access to payments you have made and how many you still need.

What you should do right now

First, log into your account on StudentLoans.gov and confirm your current loan balance, interest rate, and repayment plan. If you are not sure which servicer handles your loans, StudentLoans.gov will show you. Make sure your contact information is up to date so you receive notices about your loans.

Second, if you are not currently making payments, contact your servicer and set up a payment plan. If you cannot afford your current payment amount, ask about income-driven repayment options. Even though new enrollments are paused, your servicer may be able to place you on a temporary forbearance or deferment while you wait for enrollments to resume.

Third, if you work in public service and are pursuing PSLF, submit your PSLF form now if you have not done so recently. The form counts your may have access to payments and moves you closer to forgiveness. You can submit it once per year or whenever you change employers.

Fourth, stay informed about changes to federal student loan policy. The Trump administration's policies may change again, and Congress may pass new legislation. Check StudentLoans.gov periodically for updates, and sign up for email notifications from your loan servicer so you know when your payment is due.

Frequently Asked Questions

Do I have to start paying my student loans again?

Yes. The payment pause ended in September 2023, and all borrowers with federal student loans are required to make monthly payments. If you have not been paying, your account is delinquent and your credit score has been affected. Contact your servicer immediately to set up a payment plan or to ask about forbearance or deferment options.

Can I still get my student loans forgiven?

Federal forgiveness programs still exist, but some are frozen or have changed. PSLF remains available if you work in public service and make 120 may have access to payments. Income-driven repayment plans, which can lead to forgiveness after 20 to 25 years of payments, are currently frozen for new enrollments but remain active for existing borrowers. Check with your servicer about what forgiveness options are available to you right now.

What if I cannot afford my monthly payment?

Contact your servicer and explain your situation. You can request forbearance (pause payments for up to three years) or deferment (pause payments if you are unemployed or in school). You can also ask about income-driven repayment, which bases your payment on your income rather than your loan balance. Even though new enrollments are paused, some servicers may place you on a temporary plan while you wait.

Will the SAVE plan reopen?

The SAVE plan is currently frozen, and there is no announced date for when new enrollments will resume. If you want to enroll in an income-based repayment plan now, ask your servicer whether PAYE or IBR are available to you. Check StudentLoans.gov periodically for updates on when SAVE and other programs may reopen.

Are private student loans affected by these changes?

No. Private student loans are issued by banks and other lenders, not the federal government, and are not affected by Trump administration policies or federal student loan programs. Your private loan terms remain the same, and you must continue making payments according to your loan agreement.