"More than 5 million Americans were in default on their federal student loans as of September, according to the Education Department. Millions are behind on loan payments and at risk of default this year. Borrowers "genuinely struggle to afford their loans and then to hear that the administration is making it more expensive and taking away some of the tools and resources that help folks afford their loans is really, it's panic-inducing," said Winston Berkman-Breen, legal director at Protect Borrowers."
"If you're a student loan borrower, here are some key things to know: If you were enrolled in the SAVE plan The SAVE plan was a repayment plan with some of the most lenient terms ever. Soon after its launch it was challenged in court, leaving millions of student loan borrowers in limbo. Last December, the Education Department announced a settlement agreement to end the SAVE plan. What is next for borrowers who were enrolled in this repayment plan is yet to be determined."
Collections for federal student loans restarted, then were paused, creating uncertainty for borrowers. The SAVE repayment plan, originally lenient, ended with a settlement and left millions in limbo while future repayment terms remain unclear. President Donald Trump’s "Big Beautiful Bill" introduced graduate borrowing limits and raised challenges to the Public Service Loan Forgiveness program. More than five million Americans were in default as of September, and millions more risk default this year. The Education Department delayed involuntary collections until new repayment plans are finalized, but the timeline for those plans is still unclear and borrower outcomes remain uncertain.
Read at Fast Company
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