Education Department sets deadline for student loan borrowers to get out of SAVE Plan

The Education Department set a summer deadline requiring more than 7.5 million borrowers to exit the SAVE Plan, a generous income-driven repayment program created during the Biden administration. A federal court has already terminated the plan, which had offered lower monthly payments and faster forgiveness for eligible borrowers. The July 1 deadline forces current participants to choose an alternative repayment option or face potential default on their loans. The ruling reflects ongoing legal challenges to Biden-era student loan policies, which the Trump administration has also sought to wind down. Borrowers who fail to switch plans by the deadline risk automatic enrollment in standard repayment terms, which typically require higher monthly payments.