Trump student loan policy changes took effect Wednesday, as the Department of Education ended the Biden-era SAVE repayment program and tightened repayment and borrowing rules for millions of Americans. The overhaul affects roughly 43 million Americans who collectively owe $1.7 trillion, with seven million borrowers in SAVE given a 90-day window to move into another framework.
Department of Education and SAVE
Education officials are urging all borrowers to return to active repayment. The Department of Education also introduced a repayment calculator on StudentAid.gov, where borrowers can compare available options and apply for a plan in under 10 minutes.
The new setup leaves new borrowers with only two designated repayment structures. For people who used SAVE, the immediate issue is the 90-day window, which forces a switch to a different plan rather than letting them stay where they are.
Parent PLUS and borrowing limits
The overhaul also changes the borrowing rules that had let graduate students borrow up to the total cost of tuition and fees. Under the new framework, Parent PLUS loans carry a strict $65,000 lifetime cap.
The Department of Education says the changes will streamline operations and curb excessive borrowing. That message runs against the practical reality for borrowers who may face higher monthly bills once they leave SAVE and move into one of the two available repayment structures.
The information in the story was gathered from Federal Student Aid, an office of the U.S. Department of Education. For borrowers now facing the transition, the most immediate step is to review the repayment calculator on StudentAid.gov and choose a path before the 90-day window closes.
