The Trump administration’s recent changes to student loans are causing frustration and confusion for some borrowers.
In response to a February court ruling that blocked some Biden-era programs, the Education Department has taken down online and paper applications for income-driven repayment plans.
“This especially hurts anyone who’s lost their jobs, including federal workers,” said Natalia Abrams, founder and president of the Student Debt Crisis Center. “A few months ago, they would have been able to get on a zero-dollar income-driven repayment plan.”
The removal of application materials also has caused confusion around the recertification process for borrowers already enrolled in repayment plans, experts say. Income-driven repayment plans take a borrower’s finances and family size into account when calculating monthly payments, but borrowers must periodically demonstrate they still qualify.
Adding to the uncertainty are layoffs at the Education Department, which oversees the federal loan system. The federal website for student loans and financial aid, StudentAid.gov, suffered an hours-long outage Wednesday, but the department has said it will continue to deliver on its commitments.
“It’s been wave after wave of bad news for student borrowers,” said Aissa Canchola Bañez, policy director at the Student Borrower Protection Center.
Here’s some guidance for those with student loans.
Check with your loan servicer and know your options
All borrowers currently enrolled in income-driven repayment plans should “get a sense of when your recertification deadline is and get a sense of what options are available to you if the form is not available online to recertify your income,” Bañez said.
Recertification confirms a borrower’s financial situation. With some forms not currently available, borrowers who are unable to complete that process could be in jeopardy.
If borrowers are already on an income-driven repayment plan, they should still be allowed to remain on that repayment plan if they can recertify their income.
Abrams said it’s also a good idea to take screenshots of your account’s current status on the student aid website.
What other resources are available?
State-specific and state-level resources are available for student borrowers. Congress members have teams charged with helping constituents if they are having trouble with a federal agency or struggling to contact a federal student loan servicer.
Borrowers may contact their representatives in Congress and open a casework file by going onto their website or calling their office.
“Try saying something like, ‘I need your help to understand how to get into an affordable repayment option, which I’m entitled to under the law,’” Bañez said. “‘Even though this federal department has taken down these applications, I need your help.’”
Despite the thinning of the Education Department and President Donald Trump’s dismantling of the Consumer Financial Protection Bureau, loan servicers still must consider a borrower’s financial situation, Bañez said.
“You can see if you can get temporary forbearance or a deferment of payments for financial hardship,” she said.
The state attorneys general also take inquiries from student borrowers.
What are affected borrowers saying?
Jessica Fugate, a government relations manager for the city of Los Angeles, said she was less than a year from student loan forgiveness under the Biden-era Public Service Loan Forgiveness program, which forgives outstanding loans after 120 payments.
With an ongoing court challenge to her former SAVE payment plan, though, Fugate hoped to switch to an income-driven plan before Trump took office. She applied in January.
“It’s the most affordable option to repay my loans while living in Los Angeles and working for the government on a government salary,” said Fugate, 42. “And it would mean my payments counted towards forgiveness.”
As of February, Fugate notified that her application was received and she had been notified of its status, but they didn’t say when she would know if she was approved.
“And when I called recently, the machine said there was a four-hour wait,” she said.
With income-driven repayment plans in limbo, Fugate isn’t sure what her options are and hopes to one day have her federal loans behind her.
“I’ve been working for the government for almost 10 years. After that much time, you don’t do it for the glory,” she said. “I’ve spent most of my career giving back to other people. I don’t mind serving people. I just feel this was an agreement they made with the public, and so we’re owed that. And it’s a lot of us. And we’re not just numbers.”
Debbie Breen, 56, works at an agency on healthy aging in Spokane, Washington. Breen said she has worked in the nonprofit sector for more than 10 years and that nearly all those years counted toward Public Service Loan Forgiveness.
Breen also was on the Biden-era SAVE plan, which means she was placed in forbearance when the court challenge to that plan was upheld. Like Fugate, she had planned to switch to an income-driven repayment plan to have her payments count towards forgiveness.
“I was months away from ending this nightmare,” she said. “Now I don’t think that’s going to happen. I’m kind of in panic mode because I know that if they stop income-driven repayment plans, I don’t know that I’m going to be able to afford the payments each month.”
Breen said she has two kids who also have student loans.
“They’re dealing with the same thing,” she said. “It’s scary. It’s absolutely scary.”
Since taking office on 20 January this year, Donald Trump’s new administration has been buzz sawing its way through government agencies and departments with the help of the new Department of Government Efficiency, or DOGE. Thousands of federal employees have been fired, offices closed and whole departments eliminated.
Social Security has not been spared despite Trump saying: “Social Security will not be touched.” DOGE has posted on its ‘Wall of Receipts’ 47 offices that will be closed and so far at least 7,000 employees have been given pink slips, but there are reports that perhaps as much as half of its once 60,000-strong workforce could be shed. Now a new concern for Social Security beneficiaries has arisen, a change in how the Social Security Administration claws back overpayments that could mean severe economic hardship for affected beneficiaries.
Social Security overpayments could mean no payment soon
The Social Security Administration announced in a blog post earlier this month that it was reinstating the default overpayment withholding rate from 10% to 100% of a person’s monthly benefit starting 27 March.
This will only affect Social Security overpayments after that date and not those that occurred before 27 March which will remain at 10% under the withholding rate for “improper” payments established in 2024. The withholding rate will also remain at 10% for overpayments made to Supplemental Security Income beneficiaries.
What happens to Medicare if your Social Security check is clawed back?
One of the major concerns with this change to withholding rates is how it will affect Medicare payments. Most seniors have their Medicare Part premiums automatically deducted from their monthly Social Security benefit. The Social Security Administration has not clarified whether it will allow beneficiaries to have their Medicare premium deducted from benefits before withholding for any overpayment.
On the contrary, and without allowing seniors to set up another payment method, it could result in those affected losing their healthcare through Medicare.
What should you do if you’ve received an overpayment from Social Security?
If a beneficiary has received an overpayment from Social Security, the SSA will send them a notice but withholding will not begin until at least 30 days have passed from the date of notification. They will be able to appeal or ask for a waiver, and while it is being considered the SSA will not claw back any overpayment from your monthly benefits.
If you disagree with the overpayment amount, you can file an appeal using SSA form 561. On the other hand, if you believe there has been an error due to no fault of your own (the burden of proof to determine who is at fault for the error now rests with the SSA), or the repayments would result in you not being able to meet your living expenses, you have the right to ask for a waiver through SSA form 632.
How do Social Security overpayments occur?
Overpayments are exceeding rare accounting for less than 1% of payments made by the Social Security Administration. A 2022 report from the Social Security Office of the Inspector General estimated that the agency made around 73,000 overpayments the previous year. While there is always room for improvement, this represents only a small fraction of the over 864 million payments made annually by the agency.
Typically, overpayments are a result of beneficiaries failing to update their earnings data or inform the SSA about other changes that could affect the amount of benefit they are eligible to receive. “Improper” payments, as they are called by the SSA, can also be the result of miscalculation by staff at the Social Security Administration itself.
They most commonly occur for those receiving disability payments (SSDI) or Supplemental Security Income (SSI). But they can also occur for widowed people who begin collecting their Social Security payments when eligible but are still receiving survivor benefits at the same time. Additionally, seniors who continue to work after they begin claiming Social Security benefits bump up against the earnings limit.
Those who haven’t reached full retirement age, age 67 for Americans born after 1960, workers lose $1 of their Social Security payments for every $2 they earn above the current $23,400 limit. The limit greatly increases for those who are over the full retirement age, currently set for 2025 at $62,160. For every 3 dollars you earn over that limit, the SSA deducts $1 in benefits.
The DOGE Dividend stimulus checks remain a hot topic, but as debates over public spending progress, their future looks increasingly uncertain. Despite the initial excitement, the proposal to pay $5,000 to every American household as part of government spending cuts still has no clear path in Congress.
The idea of DOGE checks was born earlier this year under the newly created Department of Government Efficiency (DOGE), with the aim of reducing public spending, an initiative backed by billionaire Elon Musk.
James Fishback, CEO of Azoria, presented the proposal and suggested a DOGE Dividend: a $5,000 per household rebate funded by the savings generated by DOGE by reducing public spending.
Fishback stated on social media that "taxpayers deserve a DOGE Dividend: 20% of the savings generated should be returned to American workers. It was their money, from the beginning." This proposal gained momentum when Musk hinted that he would consult the idea with the White House.
According to Fishback, payments would begin after the completion of the DOGE mission in 2026, with projected savings of $2 trillion, half of which would go toward debt reduction.
Political division over DOGE stimulus checks
Although some politicians have shown interest, the proposal has divided Congress. House Speaker Mike Johnson rejected the idea as fiscally irresponsible. During the 2025 Conservative Political Action Conference (CPAC), Johnson commented: "Politically, it would be fantastic for us because we would all get a check. But our brand as conservatives is fiscal responsibility. We have to pay the credit card."
For her part, Republican Representative Celeste Maloy expressed concern about the effects the checks could have on inflation, saying that the sensible thing to do would be to use the savings to reduce the deficit.
Public support for DOGE checks
Despite opposition in Congress, public support for DOGE checks remains strong. According to a survey conducted by JL Partners, 67% of registered voters support the measure, with 46% saying they are strongly in favor and only 7% opposed. Support was higher among Republican voters, with 60% in favor, compared to 39% of Democrats and independents. In addition, young people aged 18-49 and workers expressed greater support for the proposal.
What is the current situation with the DOGE Dividend?
Despite popular support and backing from figures such as Musk, the future of DOGE checks remains uncertain. The lack of consensus among Republicans has stalled the proposal's progress, as concerns about debt and inflation continue to dominate the debate.
While in his first term, Trump approved stimulus checks during the COVID-19 crisis, the current context is different. The idea of DOGE checks continues to be discussed, although it has not yet been determined whether they will materialize.
If you've already filed your tax return, it's normal to be wondering when you'll receive your refund. One of the most common questions is the exact time the IRS makes deposits. Don't worry, we bring you the answer and everything you need to know to be ready and not despair.
What time does the IRS deposit refunds?
Although the exact date of your refund may vary depending on several factors, the deposit time does not change much. The IRS usually makes deposits at midnight, between 12 and 1 a.m. This means that, if your refund is processed that night, you will see it reflected in your bank account in a few hours.
However, there is one important thing to keep in mind: processing times may vary depending on the bank. Although the deposit is made at midnight, your bank may take up to five business days to show the funds. But don't worry, it is most common for you to have access to your money on the same day as the deposit.
How do tax refunds work?
If you paid more taxes during the year and made your deductions properly, it's time to get that difference back! Even if you didn't pay taxes, you can get a refund if you qualify for any refundable credit, such as the child tax credit or the earned income credit.
This may seem obvious, but remember that to get a refund you need to file your tax return first. You have up to three years to file, so if you forgot to do so in previous years, there is still time.
How long does it take to get your refund?
In general, the IRS processes refunds for electronic (e-file) returns in up to 21 days. If you sent your return by mail or made an amendment, the process may take longer, up to four weeks or more. If there is an error on your return or if you made an amendment, the wait time could be even longer.
In addition, if you claim the Earned Income Tax Credit (EITC) or the Child Tax Credit, your refund is likely to take a little longer due to additional checks.
How can you check the status of your refund?
If you filed your return electronically, you can check the status of your refund online using the IRS's "Where's My Refund?" tool. Results are usually available within 48 hours after filing your return.
If you made an amendment, you should wait up to three weeks to check the status of your return, and the process can take up to 16 weeks to complete.
If you want to know when you will receive your refund, use the "Where's My Refund?" tool and be patient while the IRS processes everything.