SAVE plan

Millions of borrowers are facing higher monthly payments as the government dismantles the SAVE plan, an income-driven repayment option. This change is contributing to a surge in student loan defaults, as borrowers struggle to get their lives back on track.

Lawsuits are challenging President Donald Trump's student-loan repayment changes, including a narrowed definition of professional degrees and restrictions on the Public Service Loan Forgiveness program. Key provisions took effect on July 1, but courts have blocked others, citing potential harm to borrowers and healthcare workers. The Education Department faces legal battles over borrowing caps and eligibility limits.

Student loan servicers have started informing borrowers they have 90 days to exit the Biden-era SAVE plan. The article highlights the initiation of this process but does not specify further details about the plan's implications.

Student-loan borrowers in the SAVE repayment plan began receiving notices on July 1 to switch to new repayment plans within 90 days. Servicers like EdFinancial and Nelnet are notifying borrowers in waves, with some having until May 2027 to transition. The SAVE plan was eliminated via a court settlement, and borrowers are being directed to the Repayment Assistance Plan (RAP) or standard repayment options.

Federal student loan changes effective July 1 include the end of the Biden-era SAVE plan, new graduate loan limits under Trump's 'Big Beautiful Bill,' and potential payment increases for borrowers. Around 9 million Americans are in default, and borrowers in the SAVE plan must switch repayment plans within 90 days of notification.

The Trump administration is ending the Biden-era Save student loan repayment plan, requiring over 7 million borrowers to switch repayment options. The change follows a 2026 federal court ruling deeming the Save plan unconstitutional and the 2025 Trump administration's One Big Beautiful Bill Act, which overhauls the student loan repayment system.

Student-loan borrowers are encountering significant changes starting today, with their repayment plans potentially being phased out. Notices for the SAVE plan will be sent in July, while other repayment plans are either being phased out or introduced.

Student loan repayment plans face significant changes starting July 1, including the end of the SAVE Plan and the introduction of two new repayment options. Borrowers must switch to the Tiered Standard Plan or the Repayment Assistance Plan, with Parent PLUS borrowers facing stricter repayment terms and loan caps.

The U.S. Department of Education will temporarily reduce student loan interest rates by one percentage point for borrowers enrolled in auto pay from July 2026 to June 2028. Current auto pay users will receive an additional 0.75 percentage point reduction, totaling a 1% cut, to help accelerate debt repayment and improve the federal loan portfolio's health.

The U.S. Education Department will temporarily reduce student loan interest rates by one percentage point for borrowers using auto pay from July 2026 to June 2028. Existing auto pay users will receive an additional 0.75 percentage point reduction, and the policy aims to help borrowers pay down balances and strengthen the federal loan portfolio. The benefit is estimated to cost the agency $6 billion and applies to loans originated after July 1, 2012.

The U.S. Education Department will temporarily reduce federal student loan interest rates by one percentage point for borrowers enrolled in auto pay from July 1, 2026, through June 30, 2028. Borrowers already using auto pay will receive an additional 0.75 percentage point reduction, with the change aimed at helping borrowers pay down balances and strengthen the loan portfolio.

The U.S. Education Department will temporarily reduce interest rates for federal student loan borrowers enrolled in auto pay by 1% from July 1, 2026, through June 30, 2028. Borrowers already using auto pay will receive an additional 0.75% reduction, with the benefit costing the agency $6 billion. The announcement precedes broader changes to the federal student loan system, including new repayment plans and loan limits.

The U.S. Education Department will temporarily reduce student loan interest rates by 1 percentage point for borrowers using auto pay from July 2026 to June 2028. Existing auto pay users will receive an additional 0.75 percentage point reduction, with the benefit estimated to cost $6 billion. The announcement precedes broader changes to federal student loan policies starting July 1, including new repayment plans and loan limits.

Over 250,000 student loan borrowers in Illinois must choose a new repayment plan by July 1 as the SAVE plan ends. The plan, launched in 2024 under President Biden, faced legal challenges from Missouri and six other Republican-led states, leading to its elimination. Critics argue its removal will disproportionately affect Black borrowers, women, and lower-income individuals who benefited most from the program.

Federal student loan changes effective July 1, 2026, require borrowers to switch repayment plans, face new loan limits, and address the end of the SAVE plan. Borrowers must check their repayment status on studentaid.gov and act within a 90-day window to transition from the discontinued SAVE plan.

Nearly 7 million student loan borrowers remain in a defunct Biden-era payment plan, according to a Trump official. Borrowers in the SAVE plan face potential unaffordable payments and risk default.

Student-loan borrowers on the SAVE plan will receive notices to transfer to a new repayment plan by July, with automatic placement into more expensive options if no action is taken. The Department of Education warns payments will likely increase under the new plans, while over 60 lawmakers urge borrowers to be placed in cheaper alternatives.

Democratic lawmakers led by Sen. Elizabeth Warren urged the Education Department to provide student-debt relief to eligible borrowers and halt the transfer of defaulted accounts to the Treasury. They criticized Trump's student-loan changes, including the elimination of the SAVE plan and new repayment rules, which they argue could increase defaults. Over 7.7 million borrowers were in default by 2025, with lawmakers seeking to pause involuntary collections and clear backlogged applications.

More than 7 million borrowers will need to find a new repayment option for their federal student loans as the current SAVE plan is set to expire. The new plan they choose may also disappear quickly, adding uncertainty for borrowers.

More than 7 million borrowers on the SAVE plan will need to find a new federal student loan repayment option, as their current plan may soon be replaced. The new repayment plan they choose could also be short-lived.