WASHINGTON
More than 7 million student loan borrowers in the Biden-era SAVE plan will soon receive notices instructing them to select a new repayment plan, the Education Department said Friday, ending a nearly two-year legal reprieve.
Starting July 1, loan servicers will begin sending notices giving borrowers 90 days to switch plans.
The move follows a federal court ruling earlier this month that struck down SAVE, which has been in forbearance since July 2024.
For most borrowers, the available alternatives will mean significantly higher monthly payments.
Among those affected is Alexis Arredondo, a first-generation UCLA graduate who took on $40,000 in debt. After struggling to find full-time work in his field, he enrolled in SAVE upon graduating in 2024.
Now, he faces a difficult choice: pay more each month than he can comfortably afford or extend his repayment term and accrue more interest over time.
By James Kisoo
