Big changes come to federal student loan repayment plans

The Department of Education removed two key loan repayment applications for student loan borrowers. NBC10 Responds reporter Tracy Davidson explains what this means and has tips for tackling your outstanding loans.

UPDATE: A spokesperson from the Department of Education released the following response to our report:

 “A federal Circuit Court of Appeals issued an injunction preventing the U.S. Department of Education from implementing the SAVE Plan and parts of other income-driven repayment (IDR) plans. The Department is reviewing repayment applications to conform with the 8th Circuit’s ruling.

“As a result, the IDR and online loan consolidation applications are currently unavailable. In the meantime, borrowers can still submit a paper loan consolidation application. The Department updated information for borrowers on StudentAid.gov, including the page about court actions related to SAVE.”