The Trump administration is taking steps to end the Biden administration’s SAVE student loan forgiveness program, which provided lower monthly payments for over 7 million borrowers. This follows a settlement with Missouri, a state that sued to halt the plan, effectively eliminating it. The settlement also requires the Department of Education to notify Missouri 30 days before any future broad student debt relief, potentially hindering future forgiveness efforts. Critics argue this move will likely force more borrowers into default, exacerbating financial struggles amid rising living costs.
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Following changes to the Save plan under the Trump administration, many borrowers are feeling the financial strain of resumed loan interest and increased monthly payments. Faith, a 33-year-old, and Jennifer, a 34-year-old, are among those now facing difficult choices, with some, like Jennifer, needing to seek financial help. Others, such as Sedona, a 30-year-old lawyer, are staying in the plan, even with the added interest, struggling to balance debt with basic living expenses. Chris, 46, is also staying in the Save plan, managing his debt and other expenses. Many of those impacted feel the changes are hindering their financial progress and long-term goals.
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As I sit here reflecting on the recent news about the Education Department pausing student loan payments amid a legal battle, I can’t help but feel a mixture of frustration and relief. On one hand, I applaud Biden’s efforts to provide much-needed relief to millions of struggling borrowers like myself. The Student Aid Verification for Empowerment (SAVE) plan was a beacon of hope in the sea of uncertainty that student loan debt brings. It offered a realistic way for individuals to pay down their loans without being suffocated by interest rates that seemed to grow faster than we could keep up.… Continue reading
John Q. Hosedrinker