Education Dept Moves 7.5 Million Borrowers Off Biden's SAVE Plan to Simplify Student Loans

The Education Department announced a major shift to streamline Biden-era student debt programs: about 7.5 million SAVE plan borrowers will have 90 days to exit starting July 1 and be directed toward two Trump-era repayment options (the Repayment Assistance Plan and the Tiered Standard Plan). SAVE borrowers collectively owe roughly $365 billion; the department says the current system’s 40+ options are overly complex and created bottlenecks, with the Biden plans slated to be shut down by 2028. More than 300,000 SAVE borrowers have already moved to RAP, which requires payments of 1–10% of earnings and forgives remaining debt after 30 years if not fully paid; the Tiered Standard Plan can extend repayment up to 25 years. The move follows a court ruling that struck down the original income-driven plan, and the department says this is about simplifying access and placing responsibility on Congress rather than the department.