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‘Frustration, anger, confusion’: Trump administration leaves millions without clear path to paying off student loans

العالم
The Guardian World
2026/03/21 - 11:00 505 مشاهدة

Court’s decision to eliminate Save plan and internal shuffling on who handles what when it comes to student loans presents new challenges for borrowers

Many Americans with student debt are again facing future upheaval after a federal appeals court recently ordered the end of a Biden-era student loan repayment program, known as the Saving on a Value Education (Save) Plan, a move that coincided with another grim revelation: new education department data shows that by the end of 2025, 7.7 million borrowers had defaulted on $181bn in federal student loans.

The Save plan, which was launched in 2023, is an income-driven repayment program created with the goal of cutting undergraduate loans in half, bringing some borrowers’ monthly payments to $0, and offering early forgiveness for low-balance borrowers. Shortly after the program was announced, Republican attorneys general across the country sued to get it killed, arguing that it was an overstep of executive power and imposed heavy taxpayer costs.

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