"Student Loan Nightmare: Botched Rollout of Biden's Plan Leaves Borrowers Paying More"
Originally Published 2 years ago — by Fortune
The rollout of President Biden's new income-driven repayment (IDR) plan for federal student loans has been botched, causing confusion and frustration for borrowers. Many applicants, including Juniper, have experienced discrepancies between the repayment plans shown on the Federal Student Aid website and those provided by loan servicers. At least 420,000 borrowers have had their payment calculations miscalculated, and the total number of affected borrowers could be much higher. The U.S. Department of Education is working to rectify the errors and has placed affected borrowers in forbearance until the payment amounts are corrected. The newly created Saving on a Valuable Education (SAVE) plan, touted as a more affordable option, has been particularly affected. Borrowers will be offered refunds for any recent payments, and time spent in forbearance will count toward loan forgiveness programs. The botched rollout has left borrowers frustrated and questioning the lack of planning and preparation by loan servicers and the Department of Education.