SAVE Plan Canceled: Millions of Student Loan Borrowers Face Repayment

0:00Over 7 million student loan borrowers enrolled in the SAVE plan will start getting notices this Friday, urging them to pick a new repayment. Option. A federal appeals court struck down the plan earlier this month, ending a key Biden initiative aimed at easing debt burdens. These folks have been on pause, or forbearance, since July 2024, while court sorted out the challenges. The SAVE plan cut payments to just 5% of discretionary income and sped up forgiveness for smaller loans under $12,000. Meanwhile, the Trump administration is drawing a hard line, stressing that borrowers must repay what they took out, with no more giveaways on. Forgiveness. Many now face higher balances after interest piled up over the past year. Starting July 1, loan services will send notices and waves every two weeks, giving everyone 90 days to switch plans. Those in SAVE the longest get word first, with payments likely resuming by summer. Barwars should keep an eye on their mail and accounts to avoid surprises, as this shift marks a new push toward standard repayment across the board.

1:05From your city, powered by AI, this is Canada News Today. I'm Corey with The Story.