Education Department Shifts Millions to Costliest Loan Plan if They Stay in SAVE
Updated
Updated · The Washington Post · Sep 11
Education Department Shifts Millions to Costliest Loan Plan if They Stay in SAVE
3 articles · Updated · The Washington Post · Sep 11
Summary
Millions of federal student loan borrowers will be moved into the most expensive repayment option in coming months if they do not leave the SAVE plan.
SAVE — a low-cost Biden-era program the Trump administration fought to end — has become a trap for some borrowers because the exit process has been glitchy.
Higher monthly payments could hit borrowers who fail to act soon, even as technical snags complicate switching into other repayment plans.
The move marks a sharp turn in federal student loan policy, replacing a subsidized repayment path with a costlier default for borrowers still stuck in the system.