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What to know about student loan repayment plans and collections
The U.S. Education Department will move 7.5 million SAVE plan borrowers to other repayment plans and paused collections for those in default during the transition.
- Last December the U.S. Education Department agreed to end the SAVE income-driven repayment plan, stopping new enrollments and moving current SAVE enrollees to other plans.
- Soon after its launch the SAVE plan was challenged in court, creating legal uncertainty for borrowers, and President Donald Trump's 'Big Beautiful Bill' introduced new borrowing limits.
- Seven and a half million borrowers enrolled in SAVE must switch plans with timing currently unclear, and processing may slow since some income-driven repayment applications take longer with the loan consolidation process around 60 days.
- Last month the department delayed involuntary collections for borrowers in default, while more than 5 million Americans were in default as of September.
- The Education Department is expected to develop a transition plan as new loan limits take effect on July 1 amid challenges by 20 Democrat-led states, and borrowers should proactively enroll in other repayment plans, Kate Wood said.
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23 Articles
Coverage Details
Total News Sources23
Leaning Left8Leaning Right1Center10Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
L 42%
C 53%
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