Student Loan Forgiveness Plan Faces Sudden End: What's Next for Borrowers?

The Trump administration has taken a big step to end a popular student loan forgiveness plan. This plan, called SAVE, helped over 7 million people manage their student loans. The administration says it's stopping this plan because it believes it's not fair to taxpayers. The SAVE plan was created by the Biden administration after the Supreme Court blocked another debt relief program. It offered $0 payments for those earning $16 an hour or less and lowered monthly payments for many others. But now, the Trump administration says it's ending this plan because it thinks it's unfair to those who didn't go to college or have already paid off their loans. The Department of Education will now help borrowers find new repayment plans. However, some worry this change will cause confusion and higher payments for many people. The administration says it's protecting taxpayers, but critics argue it's making life harder for those struggling with student debt. Meanwhile, Trump's new bill, the One Big Beautiful Bill Act, plans to replace current repayment plans with two new ones starting in 2026. This includes a standard repayment plan and a new income-based plan called the Repayment Assistance Plan (RAP). The end of the SAVE plan is a big change for millions of borrowers. It's important for them to understand their options and find a new repayment plan that works for their situation.