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Trump's Student Loan Overhaul: Millions Face New Challenges

7/26/2025

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Summary

Story summary

President Trump enacted the One Big Beautiful Bill Act, impacting nearly 43 million federal student loan borrowers.
The law terminates the Biden-era SAVE plan, limits borrowing, and simplifies repayment options to two plans.
Interest will resume for SAVE participants, with a year-long transition to the new Repayment Assistance Plan (RAP).
Borrowers can still use the Income-Based Repayment (IBR) plan, but forgiveness processing is currently paused.
The Education Department is criticized for insufficient clarity and support for borrowers amid these changes.

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Story summary

President Trump enacted the One Big Beautiful Bill Act, impacting nearly 43 million federal student loan borrowers.
The law terminates the Biden-era SAVE plan, limits borrowing, and simplifies repayment options to two plans.
Interest will resume for SAVE participants, with a year-long transition to the new Repayment Assistance Plan (RAP).
Borrowers can still use the Income-Based Repayment (IBR) plan, but forgiveness processing is currently paused.
The Education Department is criticized for insufficient clarity and support for borrowers amid these changes.