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Federal Shift Raises Concerns for Student Loan Borrowers

3/20/2026

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Trump Ends Payment Pause
  • The U.S. Department of Education transferred responsibilities to other agencies including the Department of Labor.
  • The shift raises questions about the federal role.
  • Congress rejected funding-cut proposals, preserving federal support.
  • More than 500,000 student loan borrowers face a backlog in accessing income-driven repayment plans, with no debt forgiveness reported in February 2025.
  • U.S. President Donald Trump plans to end the payment pause this spring, raising concerns about defaults.
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