Nearly 7 Million Student Loan Borrowers Remain in Defunct Biden-Era Payment Plan: Trump Official
Millions of student loan borrowers who've lingered in the SAVE plan are at risk of getting billed unaffordable payments and eventually falling into default.
TL;DR
- Nearly 7 million federal student loan borrowers are still in the defunct SAVE plan.
- Borrowers in the SAVE plan are accumulating debt and not progressing toward loan forgiveness.
- They risk being billed unaffordable payments and eventually falling into default.
- The Biden administration introduced SAVE in 2023, but legal challenges put it on hold.
- Millions were placed in forbearance during legal challenges, with a federal appeals court ordering the end of SAVE.
- Borrowers have a 90-day window after receiving notice to exit SAVE and select a new plan.
- Student loan debt in the U.S. exceeds $1.6 trillion, held by over 42 million Americans.
- Those remaining in the SAVE plan's payment pause will see their debt grow from interest.