Explained: Trump’s student loan reset

Explained: Trump’s student loan reset—how interest resumes, what it costs SAVE borrowers, and what RAP will change in 2026

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Millions of SAVE plan borrowers face renewed interest accrual on federal student loans, costing them thousands annually. Despite a court injunction not explicitly mandating this, the Education Department, under new leadership, implemented the change. This shift, impacting primarily low-income households, signals a move away from Biden-era relief towards stricter repayment enforcement, culminating in the upcoming RAP program.

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