Trump official to restart interest payments for 8 million student loans next month
Nearly 8 million borrowers for federal students who joined the Sadad program during the Biden era will see the interest that accumulates on their debts again, even as their payments are stopped due to a continuous legal battle.
Starting August 1, the benefit in accumulating on the loans currently registered in Save precious education, or memorizePayment plan, The Ministry of Education announced on Wednesday. About 7.7 million borrowers were recorded in the plan, which was created under Biden’s management in 2023 and facing an immediate reaction from the conservatives.
In fact, the future of the payment plan was Legal forgetfulness for several monthsAfter a lawsuit filed by seven states led by the Republic. While the lawsuit is run, the borrowers registered in the plan did not have to pay the payments, and the interest was not due. Now, the interest will be restarted, although registered borrowers still do not need payments, says the Ministry of Education. This means that their balance may grow while they are waiting for the lawsuit to play – and when patience ends, borrowers will need to pay monthly payments on new loan groups.
Student borrower protection center, student loan defense group, Estimates This model borrower will cost $ 3500 a year, or $ 300 per month, at interest payments.
A plan to keep some low -income borrowers allowed $ 0 per month on their loans. Debt can be tolerated after 25 years of payment, even if this monthly payment has never increased.
But the Trump administration takes a significant different approach to the federal students ’loans for its predecessor. Comprehensive forgiveness – cornerstone in Biden approach – outside the table.
“The Congress designed these programs to ensure that the borrowers pay their loans, yet the Biden administration tried to force the taxpayers illegally to pay the bill instead,” said US Secretary of Education Linda McMahon.
The Ministry of Education is encouraged to save borrowers to register in a different payment plan. She says she will start reaching affected borrowers.
In addition to restarting the accumulation of attention, the education department The groups have been resumed On late loans in May. Nearly $ 282 million of groups have received the underdeveloped federal students ’loans from late June, according to a press release. She says she expects Wage efforts are employees To start later this summer.
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