1A The new reality for student loan borrowers
5 snips
Aug 21, 2025 
Michelle Singletary, a personal finance columnist for The Washington Post, joins Danielle Douglas-Gabriel, a national higher education reporter, and Catherine Lucas-McKay, an expert on consumer debt at the Aspen Institute. They discuss the significant shifts in the federal student loan system, including the end of the SAVE plan and what it means for millions of borrowers. The conversation highlights emerging repayment options, ongoing legal challenges, and the financial strategies students should be aware of to navigate this new landscape effectively.
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Monitor Legal And Administrative Changes
- Monitor upcoming administrative and legal developments because the federal agency and courts are reshaping programs.
- Expect evolving guidance and be ready to act when the Department of Education issues transition instructions.
Major Shift In Graduate And Parent Lending
- The reconciliation bill transforms federal student lending with deep changes for graduate and parent borrowers.
- Graduate PLUS elimination and new caps will reshape who can afford professional degrees and how they finance them.
Talk To Your Loan Servicer Now
- Do contact your loan servicer now to compare repayment options and prepare your budget.
- Determine whether you must switch from SAVE to standard or the new RAP plan and calculate the new monthly payment.