Trump Student Loan Overhaul Increases Monthly Payments for Millions

A student-loan repayment overhaul implemented by Donald Trump has led to significant payment increases for millions of borrowers. The policy, which took effect on July 1, eliminated the Biden-era SAVE repayment plan. The administration stated the changes aim to simplify the repayment system, curb excessive borrowing, and pressure colleges to reduce tuition.

Borrowers have reported sharp increases in monthly bills, with some payments more than doubling. This financial strain has forced families to cancel vacations and postpone retirement, while some borrowers have taken on extra work to avoid default, wage garnishment, and the seizure of federal benefits.

Concurrent with the plan elimination, the United States Department of Education introduced stricter requirements for Public Service Loan Forgiveness (PSLF). The agency now mandates that payments be made exactly on the due date to count toward forgiveness, removing a previously available grace period.