Student loan debtors brace for double pressure from Trump’s BBB, as Biden relief ends
The post Student loan debtors brace for double pressure from Trump’s BBB, as Biden relief ends appeared on BitcoinEthereumNews.com. Monthly student loan bills are about to blow up for millions of borrowers, thanks to Biden’s interest-free payment break ending, and Trump’s new policy stepping in. That means people who’ve been paying nothing or very little might soon owe double what they’re used to. Starting August 1, the SAVE plan’s interest freeze officially ends. This means anyone still enrolled and not paying enough to keep up with interest will watch their balance grow again. This is a big change from the past year, when millions were shielded from interest while legal fights dragged on. The Department of Education kept borrowers in forbearance under SAVE while the courts sorted things out, but now that’s over. The SAVE plan, which stands for Saving on a Valuable Education, had nearly 7.7 million enrollees, according to the Education Department’s statement earlier this month. It was a soft pillow for many. Payments were tied to 5% of your discretionary income, and interest didn’t grow as long as you made your monthly payments. But that safety net’s gone. “SAVE was incredibly generous,” said Scott Buchanan, who runs the Student Loan Servicing Alliance. He’s not wrong. Compared to what’s coming, SAVE was basically a gift. Borrowers now need to find another repayment plan. And fast. The Department of Education says people in SAVE should move to something “legally compliant,” like the Income-Based Repayment (IBR) Plan. Secretary of Education Linda McMahon made that clear in a press release. Buchanan backed it up, saying IBR is “the best plan for almost everyone” now that SAVE is toast. Trump’s RAP plan coming in 2026, but offers no guarantee Trump’s so-called “Big Beautiful Bill” will completely phase out most existing income-driven plans down the line. In their place, a new plan called the Repayment Assistance Plan (RAP) is set to launch…
The post Student loan debtors brace for double pressure from Trump’s BBB, as Biden relief ends appeared on BitcoinEthereumNews.com.
Monthly student loan bills are about to blow up for millions of borrowers, thanks to Biden’s interest-free payment break ending, and Trump’s new policy stepping in. That means people who’ve been paying nothing or very little might soon owe double what they’re used to. Starting August 1, the SAVE plan’s interest freeze officially ends. This means anyone still enrolled and not paying enough to keep up with interest will watch their balance grow again. This is a big change from the past year, when millions were shielded from interest while legal fights dragged on. The Department of Education kept borrowers in forbearance under SAVE while the courts sorted things out, but now that’s over. The SAVE plan, which stands for Saving on a Valuable Education, had nearly 7.7 million enrollees, according to the Education Department’s statement earlier this month. It was a soft pillow for many. Payments were tied to 5% of your discretionary income, and interest didn’t grow as long as you made your monthly payments. But that safety net’s gone. “SAVE was incredibly generous,” said Scott Buchanan, who runs the Student Loan Servicing Alliance. He’s not wrong. Compared to what’s coming, SAVE was basically a gift. Borrowers now need to find another repayment plan. And fast. The Department of Education says people in SAVE should move to something “legally compliant,” like the Income-Based Repayment (IBR) Plan. Secretary of Education Linda McMahon made that clear in a press release. Buchanan backed it up, saying IBR is “the best plan for almost everyone” now that SAVE is toast. Trump’s RAP plan coming in 2026, but offers no guarantee Trump’s so-called “Big Beautiful Bill” will completely phase out most existing income-driven plans down the line. In their place, a new plan called the Repayment Assistance Plan (RAP) is set to launch…
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