The Trump administration has announced a settlement that could end President Biden’s SAVE plan, potentially bringing back student loan payments for 7.6 million borrowers. The White House has deemed the program illegal, arguing it unfairly shifted costs to non-borrowing taxpayers. The total U.S. student loan debt is $1.75 trillion, with the average borrower owing $39,000. Many are already struggling financially, and the return of payments could worsen the situation.

If the settlement is approved, the SAVE program will be officially terminated, preventing new enrollments and denying pending applications. Borrowers will be transitioned to valid repayment plans, and the Department of Education will provide instructions and deadlines for choosing a new plan. Affected borrowers need to act quickly to adapt to the changes.

Even without the SAVE program, income-driven repayment plans can offer relief for borrowers. These plans cap payments based on income and family size, with potential loan forgiveness after 20 to 25 years. Temporary relief options and aggressive payoff strategies can also help manage student debt stress. A new Repayment Assistance Plan is expected by July 2026, providing another income-based option for borrowers.

Read more at Yahoo Finance: 7.6M Americans have had a long break from student loan payments, but time is running out. Here’s what to do now