7 Million U.S. Borrowers Must Leave SAVE by July 1, Facing 90-Day Repayment Plan Switch
Updated
Updated · WRAL News · Jun 24
7 Million U.S. Borrowers Must Leave SAVE by July 1, Facing 90-Day Repayment Plan Switch
3 articles · Updated · WRAL News · Jun 24
Summary
Up to 7 million borrowers enrolled in SAVE must choose a new federal student loan repayment plan starting July 1, with servicers giving them 90 days to act.
Borrowers who miss that window will be automatically placed into the Standard Repayment Plan or a new Tiered Standard Plan, replacing a program that had cut some monthly bills to $0.
About 250,000 North Carolinians are affected, and advocates warn of a coming "default cliff" for borrowers who moved, missed notices or have never resumed repayment before.
SAVE had calculated discretionary income at 225% of the federal poverty level, producing lower payments than other income-driven plans; alternatives now include IBR, PAYE, ICR and the new Repayment Assistance Program.
The shift closes a Biden-era plan that also delivered $144 million in early debt cancellation to 10,150 North Carolinians, as the Education Department under Trump stresses that borrowers must repay their loans.