The U.S. Department of Education has put a freeze on student loan borrower defense laws that were supposed to go into effect this past July. Education Secretary Betsy DeVos has delayed implementation of these laws until 2019, giving the department time to write new laws which will replace the Obama-era regulations.
In July, DeVos ordered a delay of the borrower defense laws first put into the works by the Obama Administration. Meanwhile, thousands of student loan claims were waiting in the wings to be processed by DeVos’ Department of Education. Now, it is November – DeVos has effectively put a hold on student borrower defense laws until July 2019, and more than 65,000 student loan claims remain unprocessed by the Department of Education.
What This Means for Student Loan Borrowers
If you are a current or former student who has filed a student loan claim with the federal government, it is still unclear when your claim will be processed. Since Betsy DeVos became the Trump Administration’s head of the Department of Education, the department has not processed any new claims. Meanwhile, many of the loans connected to these claims continue to accrue interest –this added debt alone amounts to more than $143 million.
Whether or not you have filed a claim with the government for your student loans, your plan of action is the most important tool at your disposal. Getting all the facts and exploring the unique options available to you could mean the difference between a reduced payment plan, or having your student debt forgiven entirely. At Student Debt Relief, we’re in the industry – we’re watching everything coming out of the Department of Education and bringing significant updates to you on our student debt news feed. Stay tuned!