Thousands of student loan borrowers in the USA will face increased monthly payments as the interest-free program ends and new policies take effect.
End of the SAVE Program
Starting August 1, the SAVE (Saving on a Valuable Education) program ends, which previously kept nearly 7.7 million individuals from paying interest. This year, many borrowers were shielded from increasing debts, but now they face the reality of growing balances.
Trump's New Policy and RAP Plan
The new Repayment Assistance Plan (RAP) is set to launch in 2026, which will replace existing income-driven plans. However, it remains unclear how this will affect the size of monthly payments.
Impact on Borrowers
Borrowers will need to switch to the Income-Based Repayment (IBR) plan, and many may face unexpected financial pressure. Experts warn that the jump from SAVE to IBR could lead to serious difficulties.
Legislative changes in student loans create uncertainty and financial hardship for borrowers, necessitating the search for new solutions.
