BAKERSFIELD, Calif. (KERO) \u2014 Millions of student loan borrowers will soon need to choose a new repayment option as the “Saving on a Valuable Education,” or SAVE plan, is being eliminated.<\/p>\n
Starting July 1, federal loan servicers will begin issuing notices to borrowers, asking them to leave the SAVE plan and enroll in a new repayment plan within 90 days. Borrowers will be contacted by their loan servicers in stages.<\/p>\n
The U.S. Department of Education said 7.5 million people are currently enrolled in the program.<\/p>\n
The Biden administration introduced the SAVE plan in 2023. The Department of Education said the repayment program promised to lower monthly bills for millions of student loan borrowers.<\/p>\n
Several Republican-led states sued to block the plan, arguing the program exceeded the administration’s authority and claiming American taxpayers would eventually be saddled with the burden. A federal appeals court officially blocked the program last month.<\/p>\n
In April 2025, Betsy Mayotte, president of the Institute of Student Loan Advisors, addressed the ongoing changes.<\/p>\n
“There has never been a period more chaotic than the last five years. And that has caused a lot of confusion and anxiety with borrowers,” Betsy Mayotte said.<\/p>\n
“If you are in default, I strongly recommend that you look into loan rehabilitation or consolidation to get out of default to prevent these involuntary collection activities,” Mayotte said.<\/p>\n
Borrowers can enroll in different plans, including the new Tiered Standard Plan. This option will offer fixed terms of 10, 15, 20, or 25 years based on a borrower\u2019s total outstanding loan balance, giving borrowers with higher debt lower monthly payments and more time to repay.<\/p>\n
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.<\/p>\n
Stay in Touch with Us Anytime, Anywhere:<\/p>\n","protected":false},"excerpt":{"rendered":"BAKERSFIELD, Calif. (KERO) \u2014 Millions of student loan borrowers will soon need to choose a new repayment option…\n","protected":false},"author":2,"featured_media":252213,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[151,155,153,152,19442,162,112029,13038],"class_list":["post-252212","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bakersfield","tag-bakersfield","tag-bakersfield-downtown","tag-bakersfield-headlines","tag-bakersfield-news","tag-department-of-education","tag-kern-county-news","tag-save-plan","tag-student-loans"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/252212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=252212"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/252212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/252213"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=252212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=252212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=252212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}