Student Loan Borrowers Face New Challenges
Student Loan Refinancing
Shifting policies are forcing student loan borrowers to navigate new challenges
The Saving on a Valuable Education (SAVE) plan established in 2024 enabled student loan borrowers to lower their monthly payments and offered a pathway to student loan forgiveness down the line.1 At the end of 2025, the U.S. Department of Education announced the SAVE repayment plan would be discontinued.2 No new borrowers can be enrolled, and all currently enrolled individuals would need to switch into a different repayment plan before the SAVE plan is terminated in July 2028.
Student Loan Refinancing Could Save You Thousands
Choose from a range of refinancing options and receive a special rate discount. Medical resident and fellow programs are available.
Those with student loan debt have fewer resources now than ever to navigate their repayment options. To make matters worse, at the beginning of 2026, it was announced that student loan borrowers in default could see their wages garnished up to 15%. This could affect up to five million borrowers currently in default.3
The crackdown on borrowers comes at a time when Americans—regardless of their student loan status—are struggling financially. A recent poll revealed nearly half of Americans find groceries, utility bills, health care, housing, and transportation difficult to afford.4 With fewer options and resources, the risk of falling behind on payments is higher than ever. And, missing payments can have long-lasting consequences.
Once a student loan payment is missed, a loan becomes delinquent. After a certain period, depending on the type of loan, the loan is considered in default. For a federal student loan, this is typically after 270 days. That may sound like a lot of time, however, just missing one payment could affect your credit score so it’s essential to stay current with your monthly payments. The impact worsens the longer the payment is past due.
Consider student loan refinancing to reduce your monthly student loan payments and possibly your interest rates. Act soon—before you incur even more interest.
1 Saving on a Valuable Education (SAVE) Plan (formerly the REPAYE program). Federal Student Aid (FSA). edfinancial.studentaid.gov/income-driven-repaymentinformation-center/save
2 Dept. of Ed Announces End of SAVE Plan, Offers Little Clarity for Borrowers. The Institute for College Access & Success. ticas.org/affordability-2/dept-of-ed-announces-end-of-save-plan-offers-little-clarity-for-borrowers, December 9, 2025.
3 Student loan borrowers in default could see wages garnished starting Jan 7. New York Times. www.nytimes.com/2025/12/23/business/student-loan-debtors-default-wages-garnish.html, December 23, 2025.
4 New poll paints a grim picture of a nation under financial strain. Politico. www.politico.com/news/2025/12/10/poll-affordability-cost-of-living-00678076?experience, December 10, 2025.
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