Key Student Loan Deadline Is Approaching for 6 Million Borrowers
Around 1.5 million of the 7.5 million borrowers previously enrolled in SAVE already selected a new repayment option.
As the Trump administration concludes the Biden-era SAVE repayment plan, millions of federal student loan borrowers face an important deadline of September 29. According to the Department of Education, around 6 million borrowers have yet to switch their repayment options. The SAVE plan, which aimed to make loan payments more affordable, was eliminated by the Trump administration.
Borrowers who don't act by the deadline could face significantly higher monthly payments. The SAVE plan, launched during the Biden administration, lowered monthly payments based on income and family size, but it was challenged in court and ultimately ended. The transition away from SAVE has been fraught with issues, including incorrect billing statements and confusion about borrowers' account statuses.
As the deadline approaches, borrowers are advised to compare their options to avoid higher payments and delays in forgiveness programs.
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