"Millions of student-loan borrowers could soon be forced off a key repayment plan - and debt relief is on the line. On Thursday, a group of Democratic lawmakers, including Sens. Jeff Merkley, Elizabeth Warren, Sheldon Whitehouse, and Tim Kaine, led their colleagues in raising concerns regarding the Department of Education's proposed settlement to end the SAVE student-loan repayment plan. Over 7 million borrowers are enrolled in SAVE, which was created by former President Joe Biden and intended to give borrowers cheaper monthly payments with a shorter timeline to loan forgiveness."
"Trump's "big beautiful" spending legislation called for eliminating SAVE by 2028, and this settlement would accelerate that timeline. The lawmakers wrote in a letter to Education Secretary Linda McMahon that borrowers are likely to face "significant hurdles" switching to a new plan, and those enrolled in the Public Service Loan Forgiveness program - which forgives student debt for government and nonprofit workers after 10 years - are at heightened risk."
Over seven million borrowers are enrolled in SAVE, a repayment plan designed to lower monthly payments and shorten the timeline to loan forgiveness. Litigation paused SAVE in 2024, and a proposed Department of Education settlement would eliminate SAVE sooner than the previously planned 2028 phaseout, requiring affected borrowers to transfer to an existing plan with higher monthly payments. Democratic senators warned that abrupt transitions could create significant hurdles, risk delaying or disrupting Public Service Loan Forgiveness for government and nonprofit workers, and force public servants into untenable payment increases. The department said borrowers would have a limited time to begin repayment once SAVE ends.
#student-loans #save-repayment-plan #public-service-loan-forgiveness #department-of-education-settlement
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