Trump Alters Student Loan Policies, Increases Payments for Millions

Recent changes to the U.S. Department of Education under President Donald Trump are causing significant turmoil for student loan borrowers. The administration's decision to halt income-driven repayment plans has resulted in rising monthly payments for many, with estimates suggesting increases from $500 to $5,000. As the department undergoes major restructuring, including significant layoffs, access to affordable repayment options has been severely limited, leaving borrowers uncertain about their financial futures. The American Federation of Teachers has filed a lawsuit against the Department of Education, arguing that these changes violate federal law and deny borrowers access to affordable repayment plans. Additionally, the suspension of repayment programs, combined with the transfer of student loans to different agencies, could lead to further complications and errors in processing payments. The overall impact of these changes is expected to exacerbate the financial stress faced by millions of borrowers nationwide.