Student Loan Chaos? Here’s What Trump’s Orders Mean—And How We Can Help
Student Loan Chaos? Here’s What Trump’s Orders Mean—And How We Can Help
If you’re feeling overwhelmed by all the news about student loans lately, you’re not alone.
At Tariq Law PC, we work with people just like you—folks trying to stay afloat while juggling bills, student loans, and now, a wave of confusing changes coming from Washington.
Recent executive orders from former President Trump are putting over 40 million borrowers on uncertain ground. If you’re worried about loan forgiveness, repayment plans, or being targeted by debt collectors, here’s what’s happening—and how we can stand by your side.
💥 What’s Going On With Student Loans?
In the last few weeks, there have been major shake-ups:
One executive order pushes to eliminate the Department of Education and shift student loan responsibilities to the Small Business Administration (yes, really). That move still needs Congressional approval—but it’s already causing a lot of confusion.
Another executive order could limit who qualifies for student loan forgiveness, especially under programs like Public Service Loan Forgiveness (PSLF)—a lifeline for teachers, nurses, public defenders, and others in nonprofit or government jobs.
And the administration has reportedly told servicers to pause applications for income-driven repayment plans, including the popular SAVE Plan. That means fewer options for borrowers looking for affordable monthly payments.
At the same time, over 9 million borrowers could see their credit scores drop in early 2025 just for missing payments after the pandemic pause ended. That’s not just frustrating—it can impact your entire financial future.
💬 What Does This Mean for You?
As Abby Shafroth of the National Consumer Law Center put it:
“The recent rollback of student loan protections is already creating confusion and chaos for borrowers trying to stay current on their loans.”
Here’s what we’re seeing on the ground:
More lawsuits from debt collectors
Wage garnishment and frozen bank accounts
Damaged credit
Lost access to federal repayment help
If you’re feeling the pressure or getting threatening calls or letters, don’t wait. At Tariq Law PC, we know how to fight back. We’ve helped borrowers defend against unfair debt collection and push back against abusive or premature loan enforcement—and we’re ready to help you too.
🧐 Breaking Down the Executive Orders
Let’s take a closer look at what’s actually changing—and why it matters.
1️⃣ Eliminating the Department of Education
This executive order wants to slash the Education Department’s workforce by half and eventually shut it down altogether. The plan is to shift student loan oversight to the Small Business Administration—a surprising choice, to say the least.
Why this matters:
Groups like the NAACP and labor unions are fighting this in court, saying the move could:
Cut off Pell Grants and other support
Make it easier for predatory schools to take advantage of students
Strip away vital oversight from loan servicers
We’re keeping a close watch on this, especially since we often step in when loan servicers break the rules or push borrowers into default illegally.
2️⃣ New Limits on Public Service Loan Forgiveness (PSLF)
If you work in public service, PSLF might be your best shot at loan forgiveness. But Trump’s order suggests disqualifying borrowers who work for organizations with a so-called “illegal purpose”—a vague phrase that could unfairly target nonprofits, LGBTQ+ groups, immigration services, or DEI-focused organizations.
What you need to know:
Right now, PSLF is still available, and no changes are active yet. But the uncertainty is real. If you’re in the middle of applying—or worried you could lose eligibility—we can help you understand where you stand and fight back if your application is denied.
3️⃣ Freezing the SAVE Plan and Income-Driven Repayment Options
The SAVE Plan, launched in 2023, was designed to make payments more manageable by factoring in income and family size. But the Trump Administration has:
Ordered servicers to stop processing applications
Removed application forms from federal websites
That’s left many borrowers in limbo—unable to lower their payments and vulnerable to collections. A lawsuit from the American Federation of Teachers is challenging this move, but in the meantime, many borrowers are stuck.
At Tariq Law PC, we’ve already helped clients get paused applications moving again, appeal unlawful denials, and block collection attempts while the dust settles.
✅ You’ve Got Options—And We’re Here to Help
If your loans are piling up, you’re getting calls from collectors, or you're just unsure what all this means for your future, you don’t have to go it alone.
At Tariq Law PC, we:
Defend borrowers from student loan lawsuits
Stop harassment from debt collectors
Fight for your rights under federal and state law
Help you understand your repayment and forgiveness options
📞 Call us today for a consultation.
We’ll walk you through your rights, your options, and how we can help protect your finances—and your peace of mind.
