Student Loans Just Changed... Here’s How to Pay Them Off Faster (This Year!)
Aug 20, 2025
Learn about the impending changes to student loans and how they could impact your finances. Discover a 12-step plan for faster repayment, including a biweekly payment hack that could save you over $1,000 in interest. Get tips on negotiating lower rates and explore tax-free assistance options from employers. Understand the resurfacing wage garnishments and the significance of navigating new repayment policies. Plus, hear effective strategies for student loan management, side hustles, and tracking your progress toward financial freedom.
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Major Repayment Plans Changed For New Borrowers
New federal borrowers after July 1, 2026 lose access to SAVE, PAYE, IBR, and ICR repayment plans.
The government consolidates to a standard plan and a new Repayment Assistant Program (RAP) with different terms.
insights INSIGHT
SAVE Interest Starts Accruing Again
Interest on SAVE resumes August 1, 2025, so unpaid interest can start increasing borrowers' balances again.
Borrowers on SAVE should monitor their servicer account and consider extra payments or switching plans if balances grow.
insights INSIGHT
Forced Transition To RAP By 2028
By July 1, 2028 borrowers on older IDR plans will be auto-enrolled into RAP with 1–10% payments and a $10 minimum.
Auto-enrollment can change forgiveness progress and monthly costs, so act now if current plans suit you better.
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In this episode of The Personal Finance Podcast, we break down the massive student loan changes hitting in 2025—why SAVE, PAYE, IBR, and ICR plans are being eliminated for new borrowers starting July 2026, how interest resuming on SAVE loans means balances could grow again, and why wage garnishment restarts in August 2025. We provide a 12-step action plan to pay off loans faster, including the biweekly payment hack that saves $1,000+ in interest, scripts to negotiate lower rates, and how to get $5,250 per year in tax-free employer loan assistance before these changes make escape even harder.
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