(WBEN) - This week, the Trump Administration moved to end a popular student loan forgiveness plan that millions were using to delay repayment.
The Saving on a Valuable Education, or SAVE plan, is an income based repayment plan introduced by the Biden administration that reduced monthly payments and accelerated loan forgiveness for some borrowers. The Education Department says about 7.6 Million people are in the SAVE program.
"The SAVE plan, at certain income levels, there was zero payment," said Jeff Boron of SendYourKidstoCollege.org. "The biggest challenge here is there's about 7.5 Million students who have signed up for SAVE, and for well over a year now... have not made payments. They'll now have to make payments or find a new plan."
There are some repayment plans that allow for a lower monthly payment, but Boron told WBEN the need goal is to narrow down the alternatives that student borrowers have.
"The long term plan is that students will only end up with two options," Boron said. "One is a standard repayment plan, a 10 to 25 year repayment. The second will be called RAP or Repayment Assistance Plan, that will be the only income based repayment plan that remains after all these changes are done."
Forgiveness programs will still exist for many graduates who go into public service jobs.
The Trump administration estimates that the SAVE program would have cost taxpayers over $400 Billion.