460K Student Loan Borrowers Denied: Update You Should See Now

Politics

460K Student Loan Borrowers Denied: Update You Should See Now

by JV Charles, Senior Editor, JV News Nation

Hi, I’m JV Charles, the truth slinger at JV News Nation, where we serve up bite-sized news you can trust. I’m a proud conservative, a diehard Republican, and an all-in-all Trump supporter. This means I’m going to be as transparent and honest with you as I can be, no matter how much people want to sugarcoat the information to fit their agenda. 460,000 Americans are out of their minds and emotions right now because the federal government just denied them federal student loan repayment plans. This is straight-up Trump student loan policy in action, and it’s got people talking, crying, praying, and everything in between. I’m here to give you the breakdown of what is happening, tell you how the policy works, and help you with what to do if you’re one of the millions of people affected by the 460k student loan borrowers denied.

Key Takeaways

460,000 borrowers—or 31% of the 1.5 million applicants waiting for income-driven repayment plans—were flat out rejected due to Trump student loan policy.
The push is to consolidate federal direct student loans into two basic plans and cut other expensive programs like SAVE that are costing taxpayers a lot of money.
Alternatives such as student loan consolidation direct loans or Public Service Loan Forgiveness (PSLF) are available to help borrowers.
Student loan forgiveness lawsuits and Supreme Court student loan debt relief rulings are clouding things further than a divorce court
Understanding how do you apply for student loan forgiveness and avoiding pitfalls like student loan forgiveness and taxes can help you best.

Why 460K Borrowers Denied Student Loan Repayment?

The federal government flat out denied federal student loan repayment plans to 460,000 Americans. This doesn’t just affect 460,000 Americans, either—it affects a third of the 1.5 million Americans that applied for income-driven repayment plans, such as SAVE. Trump student loan policy doesn’t care about how many people are getting hurt by it—it’s in action as promised. The plan is to cut out all of the complex repayment plans and replace them with two simple, efficient plans. Plans such as SAVE are being deemed a burden on taxpayers and being axed by the Trump administration.

The SAVE Plan Flop

SAVE, which stands for Saving on a Valuable Education, was a program put in place by Biden’s Department of Education to ease borrowers’ regular student loan payments by capping it with an income-driven repayment. Trump student loan policy sees the plan as an injustice to the Treasury and the taxpayer. Right now, these SAVE borrowers are trapped in a constant holding pattern without landing gear or a chance at a legal runway due to student loan forgiveness lawsuits from borrowers and courts alike. The general consensus is that some people, like this Twitter user @lorenza71319 below, picked SAVE for their plan, assuming they would have the lowest normal student loan payment.

Courts Have Their Hands Full

The Supreme Court student loan debt relief rulings hit like a runaway truck to hopes of large-scale student loan forgiveness. Student loan forgiveness lawsuits from 2023 have brought to light that large scale student loan forgiveness debt relief must be approved by Congress. Student loan forgiveness lawsuits from borrowers are currently holding up the federal courts on whether or not forgiveness will happen at all. With that being said, the courts’ hands are full and relief is not coming.

Trump’s Plan Is Easy, Straightforward, and Handout Free

JV News Nation isn’t out to bash anyone here. Trump student loan policy simply states that anyone looking for student loan forgiveness should not have picked a particular plan. Instead of a bloated bureaucracy and free handouts, they will be moving forward with two newly proposed repayment options come fall 2025, pending the courts. Until then, Trump’s government is recommending student loan consolidation direct loans to combine multiple federal direct student loans into one repayment plan.

Watch Out for the Tax Trap

One of the major hidden stipulations of any income-driven plan is student loan forgiveness and taxes. Right now, any forgiven debt on an income-driven repayment plan is tax free through 2025. However, if things with Trump student loan policy shift and the courts land, there may be tax considerations that result in your tax bill jumping up tenfold. This is why I have some tax experts on speed dial for situations just like this.

Forgiveness Isn’t Dead

I know this next part sounds strange, but how do you apply for student loan forgiveness? If you work in the public sector, then there is a plan for you. It’s called Public Service Loan Forgiveness (PSLF), and it’s still very much alive. Click on this link to the Federal Student Aid government website to see if you qualify for student loan forgiveness and to apply. With summer coming up, you have time, but not a lot.

Grab the Wheel, Buckle Up, and Make a Plan

Whether you are part of the 460,000 or just worried about your federal student loan repayment, stop letting things control your fate. Take back your life and your wallet by following these steps:

1. Call Your Servicer Now

Call your loan servicer as soon as you possibly can. Whether it be MOHELA, Aidvantage, or another, call them and figure out what’s going on with your repayment plan. If they say it’s not available, ask about the student loan consolidation direct loans and the standard repayment to make sure your normal student loan payment won’t crush you financially.

2. Keep Watching the Screen

Student loans forgiveness is breaking faster than the next celebrity scandal. Student loan forgiveness lawsuits and Supreme Court student loan debt relief rulings have placed a huge cloud over borrowers wanting forgiveness, especially those who have jumped on the SAVE train. This is why it is important to have a news source that you trust to keep you up-to-date with what is happening with Trump student loan policy. That source is JV News Nation—straightforward, honest news with no hyperbole.

3. Scout for Other Alternatives

If you’re set on forgiveness, look into PSLF or other government programs. Visit the Federal Student Aid website and click the button above to learn more about how do you apply for student loan forgiveness. There is still time, but it won’t last long with the government making changes.

Conservatives Can Be Happy With This Decision

JV News Nation is made of people that work hard and take pride in what they do. We aren’t going to get on our high horses and condemn this decision—conservatives like Trump student loan policy. There is nothing more inexcusable than mass student loan forgiveness debt relief that is using taxpayer money. Condensing the process into two simple plans, and creating the student loan consolidation direct loans, puts the power of repayment in the hands of borrowers, not in the hands of politicians handing out free money.

TikTok Is Buzzing

The #studentloans hashtag on TikTok has accumulated 1.3 billion views in the app alone. It’s full of influencers like Blair Huddy, who are opening up about their own struggles with repayment and offering advice to their fans on how to handle it. It’s starting to become an issue of mental and emotional health with others in the community. The issue with social media and news sources is that you have to worry about half-truths, intentional misinformation, and people with an agenda that aren’t telling you the full story. To get the update on student loans forgiveness, all you have to do is go to JV News Nation—we don’t mince words.

FAQs

Why were 460,000 borrowers denied federal student loan repayment?

Trump student loan policy is streamlining, cutting out expensive programs like SAVE and replacing it with two simple plans that are more taxpayer friendly. That’s why 31% of all pending applicants were denied.

Can I still qualify for student loan forgiveness?

Yes. Public Service Loan Forgiveness (PSLF) is still available for those working in public sectors. Check out the Federal Student Aid website above to find out if you qualify.

What should I know about student loan forgiveness and taxes?

Forgiven debt is tax-free through 2025, but due to Trump student loan policy, there may be changes that could result in your taxes shooting through the roof. Check with a tax professional.