The new reality for student loan borrowers

Nearly 43 million Americans have federal student loan debt. Their borrowing totals more than $1.8 trillion. That’s according to the Education Data Initiative.

Now, the federal student loan system is facing significant changes under the Trump administration.

One of the biggest differences is the end of the Saving on a Valuable Education, or SAVE plan, started by President Joe Biden. The income-driven program offers low monthly payments and an expedited path to loan forgiveness. 

Republicans challenged the plan in court where it’s still tied up, leaving the 7.7 million enrollees in limbo.

How is the Trump administration overhauling the federal student loan system? And what does this mean for the tens of millions of current and future borrowers?

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