From the LA Times: More than 7 million student loan borrowers who have been enrolled in a Biden-era repayment plan will receive notices ...with instructions to seek a new plan to repay their debt, the Education Department said. Borrowers enrolled in the SAVE plan, which was struck down by a federal court last month, have been in forbearance since July 2024 as a legal battle played out in courts. Starting July 1, loan servicers will begin issuing notices giving borrowers 90 days to select a new repayment plan. The available repayment plans will mean higher monthly payments for most of those borrowers.
When Alexis Arredondo graduated from UCLA in 2024 with a degree in microbiology, he struggled to find full-time work in research or public health. Instead, he began working part time and freelancing for nonprofits in Southern California. A first-generation college student, he took on roughly $40,000 in student debt and enrolled in the SAVE plan upon graduation. Now, he said, he has to choose between paying more per month, which would be a struggle to afford, or a longer repayment period, which would increase how much he pays in interest. “It’s very difficult knowing where I’m going to be to able to get this money from,” he said...
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