Posted on 05/26/2026 2:04:43 PM PDT by Libloather
Millions of student loan borrowers will need to switch to new repayment plans starting July 1 – and the plan you choose could make a huge difference in how much they owe each month.
Roughly 7 million people enrolled in the now-defunct Biden-era SAVE program will need to enroll in new plans as their payments resume after nearly two years in limbo.
President Trump’s One Big Beautiful Bill Act has cut down a handful of repayment options to just two, including the existing Income-Based Repayment plan, or IBR, and his new Repayment Assistance Plan, known as RAP.
“The benefit of this is pretty simple: You only have two options,” Erica Sandberg, a consumer finance expert at BadCredit.org, told The Post.
“When you’ve got fewer options, sometimes that can be a relief. Although I am hearing some people worrying about being able to afford their payments.”
Borrowers have been panicking since the change in plans could hike monthly bills by roughly $350, according to an analysis published late last year by advocacy firm Protect Borrowers.
Starting July 1, federal loan servicers will send notices to SAVE enrollees with deadlines on when they must take action. If borrowers do not select a replacement payment plan, the government will simply shift them into the standard IBR plan, which has been tweaked.
The IBR plan requires borrowers to pay 10% of their discretionary income toward their balance for 10 to 25 years, depending on the size of the loans. For loans that were taken out before July 1, 2014, borrowers will pay 15% of their discretionary income over 25 years.
Prior to the GOP bill, the standard plan used a 10-year repayment period, regardless of loan size.
(Excerpt) Read more at nypost.com ...
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Yeah, OUR money.
Since fed gov owns all these loans now a proper amnesty would be a reset to original principle at an agreed upon term. Some are so far in the hole that they will never be able to pay them back. It would give some hope and a road map out. Consumers are in the same boat as fed gov. Debt Jubilee of some sort is needed IMHO.
If I had turned that sentence fragment on an English composition exam, I would have gotten an “F.”
Just found out the PA degree will no longer be recognized as a professional degree and won’t be eligible for government loans. My oldest is graduating from NC State in December and is looking forward to PA school. My “doctor” is a PA. How the hell is that not a professional degree? I can’t tell the difference between her care and an MD. Meanwhile, Trump is going to let 300-600 THOUSAND Chinese in to attend school... Most likely with reduced tuition. WTF? Between this BS and AI, what the heck are the kids supposed to do as a career?
Agreed.
There are people in their 70s & 80s still paying, having their SS checks garnished.
Get all the money from the endowments of all these worthless colleges with their worthless degrees
They are designated non professionals like teachers and nurses to cap their student loan at about 80k. They will not make enough money to take on a heftier loan successfully.
The whole scam is a rat money laundering operation for the enrichment of leftist scum. It needs to be stopped.
There are second and third order effects as well, such as delaying or denying these folks the chance to buy a home, start a family, purchase automobiles etc. Their consumer spending is going to be impacted for years, maybe a lifetime.
I don't have any sympathy for student loan borrowers who quit making payments thinking Pedo Joe was going erase their debt.
Meh, they more or less led them on and it took the courts to stop it. If President Trump declared an income tax moratorium would you continue to remit income tax payments?
FedGov is partially responsible for this mess with the administration of the student loan business anyway. Freeing these people from the bonds of indentured servitude would probably do more to stimulate the economy than giving low interest money to banks to loan out anyway. Just my $.02
The Executive branch doesn't have that power and pedo joe did not have the power to wave student loans unless authorized by congress.
Not what I asked. Would you still remit income tax payments while you were waiting for it to play out? President Trump did not have the power to enact sweeping tariffs yet here we are.
You need to study the issue more closely, then.
And I have no skin in the game. Six kids, 6 bachelors degrees, no loans. Me, college and medical school, no loans. Wife, BSN, no loans.
One of my kids got "assigned" a student loan we never asked for, it took six months to get it removed.
This is a dirty, money laundering racket and it is certainly possible to accrue a large "student loan" debt without anything CLOSE to the disclosure you need to buy a car.
Agreed.
It becomes like indentured servitued.
Of course if it is required by law...
I have studied the issue. Life sucks then you die if cant pay your bills.
I think the government should allow a third option. Pay 5% of your income to the IRS for the rest of your life. After 45 years that leads to a lot more money and interest then paying every month for 10 to 25 years. The kids will not have to worry about making any payments and have no bad credit rating. IMHO.
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