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.
AI Snips
Chapters
Transcript
Episode notes
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.
Refinancing Relief Is Political; RAP Waives Interest
- Try consolidation options and monitor policy changes, but know refinancing relief is a legislative issue.
- Expect RAP to waive unpaid interest if monthly payments don't cover accruing interest.
Run Numbers For Each Repayment Formula
- Do run the repayment calculations for each plan because payments will follow the chosen plan's formula.
- Expect SAVE-era payments to be lower now and IBR payments to be modestly higher if you move off SAVE.