Nearly 7 million student loan borrowers stuck in defunct SAVE plan face growing debt and no forgiveness progress
By
Annie Nova
Toasted to a respectable shade. No regrets, no crumbs left.
Summary
Nearly 7 million federal student loan borrowers remain enrolled in the Biden-era SAVE repayment plan, which is now defunct. Nicholas Kent, undersecretary of education at the U.S. Department of Education, warns that these borrowers are accumulating debt without making progress toward loan forgiveness. Only about 300,000 borrowers have recently transitioned out of the plan. Those who linger risk facing unaffordable payments and potential default.
Key quotes
· 2 pulledIt's a problem for borrowers.
They're not recognizing the benefit of making their payments.
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