Trump tells 7 million student loan borrowers to pick a new repayment plan - or risk being placed in an expensive one
Source: The Independent
Friday 27 March 2026 15:00 EDT
Over 7 million student loan borrowers enrolled in a Biden-era repayment scheme have been ordered to pick a new plan or risk being automatically placed on one vastly more expensive.
Borrowers enrolled in the Saving on a Valuable Education plan, known as SAVE, will begin receiving notices about switching to other ways to repay starting Friday, according to the Department of Education. The Trump administration has long targeted SAVE, which was struck down by a federal court last week.
Loan servicers will now begin issuing notices giving borrowers 90 days to select a new repayment plan, department officials said. They will then resume making payments as soon as this summer.
Around half of those on the SAVE plan have incomes low enough to qualify for its zero-dollar monthly payment. A standard plan would see them ordered to pay fixed payments over 10 years, leading to huge increases. The Independent has contacted the Department of Education for comment.
Read more: https://www.the-independent.com/news/world/americas/us-politics/trump-student-loan-repayment-plans-save-b2947324.html
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