Education Department directs student loan borrowers in SAVE plan to prepare for repayment

More than 7 million student loan borrowers who've been enrolled in a Biden-era repayment plan will receive notices with instructions to seek a new plan to repay their debt. The Education Department says the borrowers will receive the notices beginning Friday. The SAVE plan was struck down by a federal court this month. Borrowers enrolled in the SAVE plan have been in forbearance since July 2024 as a legal battle played out. Starting July 1, loan servicers will issue notices giving borrowers 90 days to select a new repayment plan. The SAVE plan was launched by President Joe Biden, a Democrat. President Donald Trump's Republican administration calls it “unlawful loan forgiveness."