STUDENT LOAN DEBT SOLUTIONS

Millions of student-loan borrowers are bracing for significantly higher monthly payments after the Trump administration moved to wind down one of the federal government’s most affordable repayment options.

Starting today interest is set to start accruing again for the nearly eight million people enrolled in the Saving on a Valuable Education Plan, or SAVE. The Education Department said it is making the change to comply with a federal court injunction that blocked the plan, which was introduced under the Biden administration.

An analysis by the Wharton School at the University of Pennsylvania estimates that borrowers’ lifetime loan payments will increase nearly $3,700 on average under the new plans.

Read more about how this will impact student loan borrowers here at the Wall Street Journal: WSJ