Federal student loans have become a political football of policy, with repayment rules shifting from one administration to the next. In just eight months of the Trump presidency, the One Big Beautiful Bill Act has brought major changes to what borrowers can expect, vastly different loan eligibility and obligations.
One major change is to the Biden-era Saving on a Valuable Education (SAVE) plan. The plan was the most generous repayment plan and faced Republican scrutiny. The plan had been in legal limbo for months, pausing interest accrual and required payments, and now it's moving in a different direction. Starting in August, SAVE borrowers will see their balances grow as interest is set to kick back in. Borrowers can change their plan by July 1, 2028, when the SAVE plan will end under the One Big Beautiful Bill Act. Until then, borrowers are not required to make payments, but they will see their loans balloon with interest.
Other student loan changes include new borrowing limits for graduate students and parents beginning in July 2026, affecting those in the grad PLUS program and parent PLUS loans. Repayment options have also dramatically changed from seven repayment plans to two new plans Republicans have drawn up. Eligibility for certain loan forgiveness has come under scrutiny as well, as the Trump administration is looking to block relief for some workers in public service.
On average, North Carolina college students graduate with nearly $39,000 in student debt, according to the Education Data Initiative. About 1.4 million borrowers in North Carolina had about $54.5 billion in outstanding principal and interest on federal loans as of June 30, according to federal government data. The Tar Heel state ranks ninth in total loan portfolio.
With a student loan system in flux, borrowers are confused and seeking clarity. We speak with loan experts about what’s coming and what borrowers can do now.
GUESTS:
Betsy Mayotte, president and founder of the Institute of Student Loan Advisors
Mike Pierce, executive director and co-founder of the Student Borrower Protection Center
Cory Turner, NPR education correspondent
