U.S. Dismantles SAVE Student Loan Plan for 7 Million Borrowers, Forcing New Repayment Choices
Updated
Updated · The New York Times · May 25
U.S. Dismantles SAVE Student Loan Plan for 7 Million Borrowers, Forcing New Repayment Choices
4 articles · Updated · The New York Times · May 25
About 7 million borrowers enrolled in the Biden-era SAVE plan will have to pick a new federal repayment option or be assigned one by the government.
July 1 is the key date: loan servicers will begin sending notices and deadlines as the Trump administration rolls out repayment changes mandated by last summer’s tax-and-policy law.
SAVE borrowers have had payments frozen for nearly 2 years after Republican attorneys general challenged the plan, leaving many in legal limbo until its formal dismantling.
The overhaul reaches beyond SAVE, adding 2 new repayment programs while phasing out several existing ones and potentially raising monthly bills for borrowers already facing higher living costs.
Will the Treasury's takeover of student loans cause chaos for millions of borrowers?
How will eliminating the Grad PLUS loan program reshape the future of graduate education?
With loan forgiveness now taxable, is the new 30-year repayment plan truly affordable?