Biden’s New Repayment Plan, Loan Servicing Changes, and Forthcoming Forgiveness Regulations

The suspension of student loan payments is quickly approaching its end, and it is highly unlikely that President Joe Biden will grant another extension. This means that over 40 million borrowers will have to resume repayments after more than three years – a truly unparalleled situation.

The situation is further complicated by the fact that the student loan environment has undergone significant changes since before the pause, affecting various aspects such as loan servicing, repayment, and forgiveness programs. Advocacy groups for borrowers are worried that these substantial shifts, even if well-intentioned, may lead to confusion and mistakes, ultimately resulting in an increase in defaults.

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