Trump Administration Launches New Student Loan Portal For Borrowers in Default, Extends Interest Rate Cut Deadline
The U.S. Department of Education and the U.S. Department of the Treasury launched the Defaulted Loans Support Center on Wednesday, a new online portal to help borrowers with defaulted federal student loans understand their options and return to repayment. New Portal Details The portal, part of the ED-Treasury Federal Student Assistance Partnership, replaces the department’s paper-based process, letting borrowers apply online to rehabilitate or consolidate defaulted loans, make payments, and review discharge options at StudentAid.gov. “This landmark announcement is a historic step toward breaking up the federal education bureaucracy while streamlining critical resources for student loan borrowers in default,” said U.S. Secretary of Education Linda McMahon. The department said the partnership brings Treasury’s financial and operational expertise into federal student aid programs that millions of American borrowers rely on. U.S. Treasury Secretary Scott Bessent said the center “marks an important early achievement” of the partnership. The department said loan rehabilitation approvals have risen 69% and consolidations out of default have risen 95% since the partnership launched less th
S. S. Department of the Treasury launched the Defaulted Loans Support Center on Wednesday, a new online portal to help borrowers with defaulted federal student loans understand their options and return to repayment. gov.
S. Secretary of Education Linda McMahon. The department said the partnership brings Treasury’s financial and operational expertise into federal student aid programs that millions of American borrowers rely on. S.
Treasury Secretary Scott Bessent said the center “marks an important early achievement” of the partnership. The department said loan rehabilitation approvals have risen 69% and consolidations out of default have risen 95% since the partnership launched less than six months ago. Read Also: OpenAI President Greg Brockman Pulls Planned Second $25 Million Donation to AI Super PAC, Says He Felt 'Terrible': Report Rate Reduction Deadline Extended Separately, the department announced Tuesday that it extended the enrollment deadline for its temporary 1-percentage-point interest rate reduction by three months, to Dec. 31, from the original Sept.
30 cutoff. Nearly 2 million borrowers have enrolled in autopay to access the benefit so far, Under Secretary of Education Nicholas Kent said. “We are excited to see millions of borrowers take advantage of this temporary benefit, which is already driving up repayment rates,” Kent said. Borrowers who enroll by the new deadline will keep the reduced rate through June 30, 2028; those already in default must consolidate their loans and enroll in a new repayment plan before accessing autopay.
25-point autopay discount, applying to Federal Direct Loans originated after July 1, 2012. Rep. ” Disclaimer: This content was produced with the help of AI tools and was reviewed and published editors. Read Also: Trump Media Trending After Filing Merger Paperwork with TAE Technologies Image via Shutterstock