student-loan borrowers

An expert at the Education Department corrected a legal filing because an error in the National Student Loan Data Service reported some student-loan borrowers' income incorrectly as $0. This mistake is tied to an ongoing case where borrowers are attempting to restore benefits like REPAYE and pause involuntary transfers off the SAVE plan. Outside of this lawsuit, borrowers have also reported various glitches with their payments since July 1.

Student-loan borrowers are navigating confusion stemming from repayment changes that took effect on July 1, resulting from an overhaul. Borrowers have reported encountering inaccurate bills and payment glitches, while the transition away from the SAVE plan has complicated budgeting efforts due to confusing notification processes. Furthermore, the Department of Education confirmed instances where borrowers received incorrect payments or were wrongly notified of past-due statuses.

Student-loan borrowers are encountering significant changes starting today, with their repayment plans potentially being phased out. Notices for the SAVE plan will be sent in July, while other repayment plans are either being phased out or introduced.

The Trump administration confirmed that student-loan borrowers on the SAVE repayment plan will not need to transition to a new plan until at least September 29, with most receiving more time due to a phased rollout. This follows the elimination of the SAVE plan, a Biden-era initiative, and comes amid a lawsuit challenging the transition to more expensive repayment options.