SAVE Plan Ends: Student Loan Borrowers Switch Repayment

0:00Over 7 million student loan borrowers enrolled in the SA plan now got a switch to a new repayment option, according to the Education Department. A federal court knocked down the plan earlier this month, forcing this big shift. Starting July 1, loan servicers will send out notices and waves every two weeks, giving folks 90 days to pick something else. The longest enrollees get hit first, so get ready if you've been on it a while. SAV was a Biden push for easier terms, like payments at just 5% of discretionary income and forgiveness after 10 years for loans under $12,000. Now, most will face steeper monthly bills, and interest has been piling up since last summer. Trump's team is firm, saying borrowers got to pay back what they took, no more free passes. Critics fire back at this ramps up the affordability mess, leaving people with lousy choices in bigger debt stress. Meanwhile, other tweets are coming, like no more deferments for unemployment on new loans over the next couple years.

1:02Keep an eye on your servicer, and plan your move to stay ahead of the curve. Stay informed with Dallas News Today, AI-powered updates. I'm Corey with The Story.