The impact of student loan repayment policies could devastate millions of borrowers who are now forced into more expensive repayment options.

A seismic shift in student loan repayment: Implications for borrowers and the economy


The impact could devastate millions of borrowers who are now forced into more expensive repayment options

Key points:

  • The consequences go beyond borrowers and could slow economic growth
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  • For more news on higher-ed policies, visit eCN's Campus Leadership hub

The U.S. Department of Education announced the suspension of all income-driven repayment (IDR) plans for federal student loans. This decision stems from a ruling by the U.S. Court of Appeals for the 8th Circuit, which expanded an injunction against President Joe Biden's Saving on a Valuable Education (SAVE) program. The court’s decision not only halted the SAVE program but also put the future of other IDR plans in jeopardy, including Income-Contingent Repayment, Pay As You Earn, and Income-Based Repayment.

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