Student Loan Borrowers Must Act Soon Before Automatic Enrollment into Higher-Payment Plan
Millions of federal student loan borrowers enrolled in the SAVE (Saving on a Valuable Education) repayment plan must act quickly before an impending deadline set by the Trump administration. Those who do not switch to another income-driven or affordable repayment option may face significantly higher monthly payments, as they will be automatically placed into a standard fixed-payment plan starting October 1. The Department of Education has begun notifying borrowers in waves over a rolling 90-day period that started on July 1 for some. As of March, nearly seven million borrowers remained enrolled in SAVE with an average debt close to $55,000. Many have not made payments due to legal challenges and interest accumulation during the program's suspension. Borrowers are advised to check their loan servicer accounts immediately to confirm deadlines and update contact information to ensure they receive notices via email or mail. Applications for new repayment plans can be submitted through studentaid.gov, though delays in processing may occur.
Topics: debt_repayment education policy_change