Federal Student Loan Borrowers Face Higher Payments Amidst SAVE Plan Glitches

Millions of federal student loan borrowers are at risk of facing higher monthly payments if they do not transition off the defunct Saving on a Valuable Education (SAVE) repayment plan. The U.S. Education Department is moving 7.5 million people off the plan, but borrowers report system glitches and conflicting information making it difficult to select a new plan. Payments for SAVE enrollees, previously postponed, are now ending, with federal loan servicers instructing borrowers to choose a new plan within 90 days or be automatically placed into the more expensive standard plan.