Student-loan borrowers risk being forced into the most expensive repayment plan if they don't take action this month
The deadline for the first batch of student-loan borrowers to transition off the SAVE repayment plan is approaching at the end of September.
President Donald Trump's administration is mandating that student-loan borrowers switch out of the SAVE repayment plan by September 29, 2023, or risk being forced into the standard repayment plan with the highest monthly payments. The SAVE plan, introduced under the Biden administration, provided more affordable payments and a faster path to debt relief.
The current administration has ended the SAVE program, and servicers have been notifying borrowers of their 90-day window to select an alternative repayment plan. If borrowers fail to switch plans, they will automatically be moved to the standard repayment plan. Some borrowers are already experiencing significantly higher monthly bills after transitioning off the SAVE plan.
A lawsuit has been filed to stop the forced transfers of borrowers from the SAVE plan if they do not switch within their allotted time. Democratic lawmakers have advocated for extending the deadline for borrowers to move off the SAVE plan, arguing that they deserve sufficient time, information, and support to make an informed decision and continue paying down their loans.
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