Federal student loan borrowers are facing changes to their repayment plans as the Trump administration’s One Big Beautiful Bill Act takes effect. The changes, which became official on July 1, mark the end of the Biden-era SAVE Plan and introduce new repayment options.
Understanding the Changes
The new rules did away with previous income-driven repayment plans, replacing them with new Income Driven Plans. These plans will assign a monthly payment based on the borrower’s annual income and family size. Borrowers can estimate their monthly payment using the Federal Student Aid website’s Repayment Calculator.
To select a new repayment plan, borrowers must submit an application online and confirm their current annual income with either their most recent tax return or recent payment stubs. The Public Service Loan Forgiveness program is still available to those employed full-time by certain government or nonprofit organizations.
Borrowers are advised to contact their loan servicer to review their options and update their contact information. With seven different federal student loan service providers, knowing who is servicing the loan is key to processing the new application.
Original reporting: San Antonio Report — read the source article.
