Student Loans and Higher Education Policy

The U.S. Education Department says more than 7 million federal student loan borrowers enrolled in President Biden’s SAVE income‑driven repayment plan will start getting notices Friday directing them to move into different repayment plans after the 8th Circuit Court of Appeals struck SAVE down earlier this month. Borrowers in SAVE have been in forbearance since July 2024 while lawsuits proceeded, but interest has been accruing since a ruling last summer blocked implementation, meaning some now owe more than when payments paused. Beginning July 1, loan servicers will give affected borrowers 90 days to select from existing repayment options, most of which will mean higher monthly payments because the most generous terms — payments as low as 5% of discretionary income and quicker forgiveness for smaller balances — are now off the table. Under Secretary of Education Nicholas Kent, reflecting the Trump administration’s stance, said “the days of unlawful loan forgiveness are behind us” and emphasized that borrowers are responsible for repayment, while advocates warn millions will face a renewed affordability crunch just as new rules also phase out unemployment and economic‑hardship deferments for future borrowers. The move caps years of political back‑and‑forth in Washington over student‑debt relief and signals a decisive shift away from Biden‑era efforts to ease repayment burdens, a change that’s already drawing alarm from borrower groups on social media who describe feeling “whiplash” from constantly changing rules.