WASHINGTON (AURN News) — The SAVE student loan repayment plan ended this year after a federal court order following legal challenges from Republican-led states. Since July 1, roughly 7 million affected borrowers have been receiving notices giving them 90 days to choose a new repayment plan.
Borrowers must choose a new plan within that 90-day window or be automatically placed in a fixed-payment plan that could mean a much higher monthly bill. For borrowers notified July 1, that deadline arrived Sept. 29.
For many borrowers, the alternatives aren’t just pricier — they represent a completely different financial reality.
In one case profiled by Truthout, a borrower who paid as little as $35 a month under SAVE would see her cheapest replacement option rise to $285 a month.
For that same borrower, income-driven options that would qualify for Public Service Loan Forgiveness would cost between $693 and $733 a month.
On top of that, borrowers have reported serious servicing errors. Some have been incorrectly told they were in default, while others have seen qualifying payment counts toward loan forgiveness drop without notice or explanation.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @ebonymcmorris & @aurnonline.
