Trump’s Student Loans: Less SAVE, More ‘Good Luck Paying This’ Plan
KEY POINTS
- •The Department of Education published the proposed student-loan repayment rule on a Thursday ahead of a July implementation.
- •The new plan replaces Biden’s SAVE with payments capped from 1% to 10% of income and forgives balances after 30 years.
- •Borrowers can now rehabilitate defaulted loans twice and must switch from SAVE before 2028 if the settlement gets approved.
In a plot twist that no one saw coming ever, Trump's Department of Education just proposed a 'big beautiful' student-loan overhaul—because why not bring nostalgia for 2025 into 2026? Published on a Thursday to maximize bureaucratic suspense, this rule kills the Biden-era 'SAVE' plan that forgave debts after 10 years, replacing it with a generous new deal: 1-10% payments for 30 years followed by 'maybe we'll forgive the rest' forgiveness. Undersecretary Nicholas Kent promises this makes careers 'debt light' for everyone from clergy to physicians, despite chopping graduate borrowing caps and tossing out Grad PLUS loans. Also, defaulted borrowers get a second shot at redemption—with payment plans and less hope. Public has until March 2 to complain, which will likely be exactly how many people do.
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Ah, democracy in action: a new student-loan plan that says 'Pay more, forgive less, and watch your retirement plans disappear.' Because 30 lifelong years of debt is just character-building, right?
Nothing says 'we care about your financial future' like pushing a repayment plan that takes three decades to maybe clear your debts. Patience is a virtue, especially when you have nothing else left.
Trump’s education plan is basically a subscription service where you pay forever but never get all your benefits. Who needs Netflix when you have lifelong loan payments?
Source: Businessinsider | Published: 1/29/2026 | Author: Ayelet Sheffey
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