Student Loan Updates for April 2025
Spring may be in the air, but clarity around student loans is still nowhere in sight. With lawsuits flying, guidance lagging, and new proposals from every corner of Washington, borrowers are rightfully feeling overwhelmed. That’s why we’re here: to break it all down, provide the facts, and help you navigate what’s next. If any of these updates apply to you and you’re unsure what to do, reach out to us for a consultation. We’re here to help you make sense of the chaos.
AFT and SBPC Sue Trump Administration Over IDR Access
We’ve seen lawsuits successfully block several of President Biden’s major student loan initiatives. Now, the tables have turned. On March 18th, the American Federation of Teachers (AFT) and the Student Borrower Protection Center (SBPC) filed a lawsuit against the Trump administration and the Department of Education (DOE), alleging that borrowers have been improperly denied access to all IDR plans.
Technically, we understand why the IDR application needed to come down temporarily following the SAVE ruling. The DOE had to rework the forms to remove the SAVE plan, along with forgiveness under PAYE, and ICR. But some suspect the delay was strategic, allowing time for Congress to finalize a new, single repayment plan to replace them all.
The good news? IDR applications came back online a few days later. The bad news? As of this writing, processing is still frozen. Internal sources suggest that functionality should return in weeks, not months, but if it doesn’t, a court hearing is scheduled for April 15th. We’ll be watching closely.
IDR Recertifications: Know Where You Stand
If you missed our March 28th update on recertification guidance, now’s the time to catch up, especially if you’re not in SAVE forbearance. The rules have shifted, and depending on your recertification date, you may need to take action… or you may be fine doing nothing at all (yes, really).
If you’re still hanging out in SAVE purgatory, hang tight. We expect more guidance soon. Until then, we’ve got your back. Check out our detailed breakdown.
DOE Launches New Rounds of Neg-Reg
I’m sure that speaking the language of a student loan expert is nowhere on your wish list. But this term is worth knowing: Negotiated Rulemaking (Neg-Reg) is how the DOE proposes formal changes to federal loan programs. And it’s happening again.
The DOE just announced a new round of Neg-Reg sessions focused on, “ways to streamline higher education regulations and federal assistance programs to create efficiencies for students, institutions, and key stakeholders, as well as ideas to improve the Public Service Loan Forgiveness Program, the Pay As You Earn (PAYE) Repayment plan, and the Income-Contingent Repayment (ICR) plan.”
We knew the DOE would need to release new IDR guidance after the SAVE ruling. While Neg-Reg is the appropriate way to go about it, unfortunately this process can take months. But borrowers (especially those in the SAVE plan) need answers now.
Additionally, the DOE hasn’t always followed the recommendations from these sessions. Meanwhile, Congress is cooking up its own IDR and PSLF changes, which may render the entire Neg-Reg effort moot. Let’s just hope someone is coordinating these two lanes of reform before they crash into each other, because the last thing anyone needs is conflicting guidance. We’ll keep you posted.
Join the Movement: Speak Up for Loan Forgiveness Grad Plus Loans
We’re not in the habit of calling readers to action unless it really matters, but this one does.
The latest congressional budget proposal includes some deeply concerning measures, such as eliminating Grad PLUS loans and restricting PSLF and IDR forgiveness. These changes would directly impact your ability to pursue (and afford) a career in medicine or public service.
If that hits close to home, make your voice heard.
The Association of American Medical Colleges (AAMC) is gathering stories from medical students, residents, educators, and practicing professionals. These real-world experiences will be shared with lawmakers to protect and preserve essential programs like Grad PLUS and PSLF.
Final Thoughts
We know this month’s newsletter covers a lot of moving pieces, but that’s the student loan landscape right now. Between lawsuits, paused applications, and shifting repayment options, it’s never been more important to stay informed.
If you’re unsure where you stand or what your next move should be, let us help. Book a consultation with one of our advisors and get personalized guidance tailored to your career and loan profile.
Brandon Barfield is the President and Co-Founder of Student Loan Professor, and is nationally known as student loan expert for graduate health professions. Since 2011, Brandon has given hundreds of loan repayment presentations for schools, hospitals, and medical conferences across the country. With his diverse background in financial aid, financial planning and student loan advisory, Brandon has a broad understanding of the intricacies surrounding student loans, loan repayment strategies, and how they should be considered when graduates make other financial decisions.
