The Trump administration’s recent actions regarding federal student loans have caused significant concern among borrowers who benefited from the Save plan initiated under President Biden. The Department of Education has, in essence, gutted this income-driven repayment plan, forcing millions of borrowers to contend alone with mounting financial stress. As of August 1, the administration resumed charging loan interest for borrowers, a move that has stirred dismay among those already grappling with high debt levels.
The Save plan, the department’s cornerstone repayment plan for borrowers, was made to relieve the financial burden on borrowers by limiting their monthly payments according to their income. It was particularly expanded under the Biden administration, with roughly 8 million people signing up for this program. The Trump administration’s disastrous suggestion that borrowers opt into other repayment plans has led to chaos and pain.
Faith, one of the borrowers previously discussed, is now ineligible for that protection and has seen her necessary monthly payment increase by over $300 per month. She is a master of laws degree holder, an associate lawyer. At first, the impact of her education was to accelerate her career trajectory and allow her to get on track with entering the housing market. Faith still struggles, living paycheck to paycheck with her partner, even though she makes a decent wage.
“To me that just looks like you’re digging me deeper into debt, so I felt like I had no other choice but to go ahead and change from the Save plan and start making those payments,” – Faith
Jennifer, 34, public school teacher Jennifer is starting to feel the pressure from these changes. With her federal student loan debt totaling $63,419, her payments almost doubled, jumping from $250 to $480 a month. She expressed frustration about the financial strain placed on educators, noting the challenges many face in an already underfunded profession.
“There’s so many Americans who don’t have access to generational wealth in that way, and so many teachers who don’t – and we wonder why the teaching field is so white, so unrepresentative. It’s so expensive to be a teacher,” – Jennifer
For instance, Sedona shoulders an incredible $170,848 in federal student loans. Even after loan interest resumed, she’s planning to remain on the Save plan. She painted a picture of her living crunched under financial burdens. She and her fiancée still live hand-to-mouth, and she still asks when they will be able to start living their lives again.
“It feels like, when do I get to start living my life?” – Sedona
For millions of borrowers such as Chris from Aurora, Colorado, the weight is intense. Despite their new challenges, they remain stuck in the Save plan. This decision has been influenced by fears of defaulting on private debt, which most people find to be much scarier than federal loans.
Faith’s future is just as grim as she contemplates what getting student loans has brought to her life.
“I wasn’t aware of the detriment it would have on my future,” – Faith
She articulated a broader sentiment shared by many borrowers: the sense of being trapped in an unending cycle of debt that stifles their economic mobility and personal aspirations.
“You really don’t know the full scope of what you’re getting into [when taking out student loan debt] … I got my master’s specifically to progress in my career, but what I make now versus what I owe on the degree, it’s almost like it doesn’t make sense,” – Faith
Reporting on what’s happening on the ground reveals the personal and financial devastation that borrowers are beginning to endure. It also asks critical questions about the impact of student debt policies on American families and their potential to build futures. As Jennifer said, it’s a feeling that I think many of us who have been impacted by these changes can relate to.
“The administration claims to be pro-family, but is screwing a lot of people over – including ones with families, including ones who want to build a family,” – Jennifer
Borrowers have been put in a position by the Trump administration’s policies. Their financial stability and overall quality of life are at risk now more than ever. The movement to reform — and finally fully erase — unjust student debt is rapidly changing. It underscores the critical call that’s out there right now for coordinated, equitable strategies to address the issues millions are experiencing nationwide.