With income-driven repayment plans paused, the student loan program is in chaos

It seems that no one is so sure what is happening to the student loan program right now.

Friday, a group of 25th anniversary wrote Education Secretary Linda MacMahon asks more information about the February decision of its agency to remove online applications for several popular income repayment plans. This step is a massive uncertainty for millions of borrowers, as it has allowed many to complete the annual necessary forms to keep suddenly bubbles.

“Borrowers have relevant to many of these plans, and this sudden and reckless operation means that millions of borrowers have less repayment measures and to manage their debt.

The Education Department did not respond to the request of Yahoo FINANCE. But the letter emphasizes the extent that the possessors in Washington remain in the dark on the Section plans. Consumer groups continue to fold equally.

“We are trying to get the Department of Education, just to ensure any kind of guidance for people working with borrowers and borrowers on how much of the student loan borrower support program. “I would say that the biggest problem is the lack of information at the moment.”

At the end of last month, the Faculty of Education closed its online application portal for repayment plans calculated on income, which owe them in a part of their earnings every month. A student is installed in a short post. On the top of Gavov, the agency reports that it removed the forms in response to the decision of the Federal Court of Appeal, which confirmed and expanded the termination of former President Biden.

Read more: What is the repayment plan on the income?

Closing online forms, the department has also blocked all its other income programs that use the same application, but were not part of the trial. Shortly afterwards, Washington Post Office said that the Education Department sent a memorandum to student loan employees who instructed them. Stop accepting or recycling Application of anytime in 90 days. According to the Senate letter on Monday, there is about 1 million outstanding applications.

As a result of the termination, former students who have problems paying their loans every month, to apply for more manageable repayment options, leaving them to lower credit points.