Education Department’s Upcoming Changes to Student Loan Repayment Plans

Millions of federal student loan borrowers are dealing with issues in the repayment process. Soon, if borrowers do not transition from a now-discontinued low-cost repayment plan, they will face increased payments.

The Education Department plans to move these borrowers into the most expensive repayment option available. This change affects those who are currently enrolled in the Saving on a Valuable Education (SAVE) plan. This program, introduced during the Biden administration, is no longer active.

The Trump administration had previously pushed to eliminate this lower-cost plan. With the potential transition looming, borrowers need to take action to avoid the impact of higher payments.