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Updated 1d ago
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Trump Education Department to shift 7.5M off unlawful Biden student loan repayment plan
The Department of Education is directing 7.5 million borrowers to exit the SAVE plan after it was deemed unlawful. Borrowers must transition to legal federal repayment plans as the government seeks to streamline programs. These changes are tied to the One Big Beautiful Bill Act.
What changed
The Department of Education has begun issuing guidance for borrowers to exit the unlawful SAVE plan.
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Trump Education Department to Move 7.5 Million Borrowers Off SAVE Plan
confidence 90%The Department of Education is directing 7.5 million borrowers to exit the SAVE plan after it was deemed unlawful. Borrowers must transition to legal federal repayment plans as the government seeks to streamline programs. These changes are tied to the One Big Beautiful Bill Act.
What's confirmed:
- The Department of Education is moving 7.5 million borrowers off a Biden administration student loan repayment plan ruled unlawful.
- The U.S. Department of Education has begun issuing guidance for borrowers in the SAVE Plan to exit and enter a legal federal student loan repayment plan.
- Federal student loan changes including restructured repayment options start July 1.
- The overhaul is tied to federal regulations from President Donald Trump's One Big Beautiful Bill Act.
Still unconfirmed:
- An amended lawsuit argues that borrowers in the SAVE plan should not be forced into other repayment plans.
- Borrowers in SAVE face a deadline in late 2026 to change their repayment plans.
- The 2026 changes include the rollout of RAP and Tiered Standard plans and the return of the tax bomb for forgiveness after 2025.