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Trump administration phases out student loan SAVE plan, hundreds of thousands of borrowers face higher bills from July 1
The Trump administration is phasing out the SAVE student loan repayment plan, forcing hundreds of thousands of borrowers on Long Island and across the country to choose a new payment option by July 1. Experts warn that monthly student loan bills will significantly increase, with a borrower earning about 65,000 dollars a year currently paying between 150 and 200 dollars per month under the plan being eliminated.
Hundreds of thousands of student loan borrowers across the United States are facing a financial shock as the Trump administration moves to phase out the popular SAVE repayment plan. Borrowers must select a new payment option by July 1, and experts are warning that the transition will result in significantly higher monthly bills for many.
Nicholas Perritt, assistant provost and executive director of financial aid at Stony Brook University, explained that the SAVE plan allowed moderate to low income borrowers to set their payments based on family income. A borrower making about 65,000 dollars a year currently pays between 150 and 200 dollars per month under the program being eliminated.
The impact extends beyond the monthly payment itself. Perritt says the university is hearing from students who are already deeply concerned about housing costs, transportation costs, and child care expenses. Student loans, he noted, are really the last thing they want to worry about on top of these existing financial pressures.
The elimination of SAVE represents a significant policy shift in how the federal government approaches student debt. The plan had been designed to provide relief to those least able to manage large monthly payments, and its removal will force borrowers to navigate alternative repayment structures that may not offer the same level of income-based flexibility.
With the July 1 deadline approaching rapidly, financial aid offices at universities across the country are bracing for a surge in inquiries from confused and anxious borrowers. The transition period offers limited time for hundreds of thousands of people to evaluate their options and make decisions that will affect their financial lives for years to come.