Student Loan Borrowers Face New Repayment Rules as Defaults Continue to Rise
Borrowers have 90 days to choose a new plan as default rates climb past $233 billion in delinquent federal student debt, officials said.
- On Wednesday, the Trump administration ended the SAVE repayment program, forcing millions of borrowers to select new payment plans as federal student loan repayment requirements restarted.
- The Trump administration says these broader reforms simplify federal student aid and address the $1.7 trillion national student loan debt burden, leading to the end of the income-based SAVE plan.
- According to Clare McCann of the Postsecondary Education and Economics Research Center, new graduate lending caps could push borrowers toward private lenders, potentially affecting 40% of students.
- Rep. Bobby Scott of Virginia criticized the restructuring, citing concerns that the Treasury Department lacks expertise in handling student aid functions.
- Borrowers face a 90-day transition period to select new repayment options, while Rep. Anna Paulina Luna proposes reducing interest rates to 2% to lower costs.
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16 Articles
Iowa Capital Dispatch
Leading Dem on US House education panel, advocates blast student loan changes
U.S. Rep. Bobby Scott, D-Virginia, speaks during a 2020 news conference in Washington, D.C. (Photo by Drew Angerer/Getty Images) WASHINGTON — Education experts and advocates warned Wednesday that the recent federal student loan system overhaul stemming from the GOP’s mega tax and spending cut law will drive borrowers to private lenders and could derail their higher education plans. U.S. Rep. Bobby Scott of Virginia, the top Democrat on the Hous…
Leading Dem on US House education panel, advocates blast student loan changes • West Virginia Watch
U.S. Rep. Bobby Scott, D-Virginia, speaks during a 2020 news conference in Washington, D.C. (Photo by Drew Angerer/Getty Images) WASHINGTON — Education experts and advocates warned Wednesday that the recent federal student loan system overhaul stemming from the GOP’s mega tax and spending cut law will drive borrowers to private lenders and could derail their higher education plans. U.S. Rep. Bobby Scott of Virginia, the top Democrat on the Hous…
This Prince George's County resident fears his dream career may be out of reach with new limits on graduate student loan borrowing
Hundreds of thousands of students accessing federal student loans will be impacted by new guidelines which restrict how much debt students can take on. The U.S. Department of Education says its to curtail overwhelming debt; students worry about the programs they can pursue.
Are Your Student Loans In Default? Here's What's Happening
Source: intek1 / Getty As a result of the Trump administration ending pandemic-era protections, student loan defaults have surged over the last year. According to AP, one in five federal student loan borrowers is currently in default on their loans. That means 9.5 million people are currently behind on their student loan payments by nine months or more. Out of $1.7 trillion in federally backed student loans nationwide, $233.3 billion is in defau…
DMV LOCAL REC SAVE Student Loan Deadline Begins for Borrowers
Millions of federal student loan borrowers, including many across the DMV, should keep a close eye on their mailboxes and StudentAid.gov accounts in the coming months. The U.S. Department of Education has begun notifying borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan that they must choose a new repayment option within 90 days of receiving their official notice. Those who don’t take action could be automatically mo…
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