Millions of Americans with student loan debt are at risk of facing higher monthly payments, delinquency, damaged credit scores, or even default.
After the Trump Administration eliminated the Biden-era Saving on a Valuable Education (SAVE) repayment plan in March and began notifying borrowers in July that they had 90 days to enroll in another plan, and following a first wave of deadlines arriving on September 29 that many may have missed, more than 7 million Americans’ financial futures could be hanging in the balance.
“This is big because there hasn’t been a forward movement of repayment for borrowers since pre-pandemic time,” Sonia Lewis, founder and CEO of the Student Loan Doctor, told theGrio over Zoom on Wednesday.
“People that haven’t made a payment in four or five years haven’t, you know, honestly hadn’t had to think about a payment at all,” she continued. “People may not know where to go, how to start the repayment, what they’re going to be expected to pay.”
The changes are unfolding at a time when student loan defaults are already on the rise, with over 9 million federal borrowers in default by the first three months of 2026 alone, according to the Department of Education. For Black Americans, in particular Black women who already shoulder a disproportionate burden of student loan debt, the growing repayment crisis threatens to further complicate everything from homeownership to building generational wealth.
There’s obviously a lot to keep straight and understand. Some are behind, some have extensions, and, of course, we know that for some this is all news to them. Below we break down exactly what borrowers need to know right now.
What exactly changed with federal student loans?
In March, a federal court order ended the SAVE plan, which offered borrowers lower monthly payments based on their income. With the decision leaving 7.5 million borrowers needing to switch repayment plans, the Department of Education began issuing 90-day notices in July. The first deadlines arrived on September 29, and borrowers who fail to select a new plan after receiving a final 30-Day notice will be automatically enrolled in a fixed repayment plan, which could significantly increase their monthly payments.
The Trump administration introduced two new options: the income-based Repayment Assistance Plan (RAP), which requires payments of at least $10 per month, and the Tiered Standard Plan, which sets repayment periods based on how much borrowers owe.
“The biggest thing right now is just making sure people don’t avoid it,” advised Lewis.
“It’s not going anywhere,” she said of student loan debt, adding, “This administration is really, you know, hell-bent on making people pay and trying to even take away some safety nets as well.”
How do you know if this affects you?
To be clear, these changes primarily affect the roughly 7.5 million of federal loan borrowers enrolled in the SAVE plan, including those whose payments have been paused under it. Those who were never enrolled in SAVE do not need to switch plans; however, other changes to federal student loan repayment may still affect them.
To find out where you stand, Lewis advises first and foremost to log on to your Federal Student Aid account, and there’s no shame in having to reset passwords or find your login information; you are far from alone. Once logged into your account, you can review notices from your loan servicer, which should clearly specify whether you need to select a new plan and when.
What options do you have if you can’t afford your payments?
For borrowers who discover they’ve been saddled with payments they can’t afford, Lewis said there are options, including income-driven repayment plans that will calculate payments based on income and family size, potentially lowering monthly bills to as little as $0 in certain circumstances. Borrowers can also qualify for deferment or forbearance, which temporarily pause payments, although interest may continue to accumulate.
If someone learns they are already in default, Lewis strongly suggests exploring loan rehabilitation, which allows eligible borrowers to bring their loans back into good standing after making nine qualifying payments within 10 months. After successfully completing the program, the default status is removed from your credit history, “like it never happened, “ Lewis said.
Ultimately, the loan expert said it’s about borrowers finding the repayment plan that works best for you.
How can student loan debt impact the rest of your life?
“Student loan debt just shows up in every area of your life. It’s not just confined to your credit score or your credit report; it shows up in your mental anguish,” Lewis noted. “It’s like a little thing that walks in the back of your mind.”
It’s true, from buying a home to starting a business to changing careers, getting married, and saving for retirement, student loan debt can complicate quite a lot. Research from the Federal Reserve found that a 10% increase in student loan debt was associated with a one-to two percentage-point increase in homeownership for borrowers during their first five years after leaving school. And according to the Consumer Financial Protection Bureau, missed payments can damage credit scores, making it harder and potentially more expensive to secure mortgages, car loans, and other financing.
What does student loan debt mean for generational wealth?
Lewis explained how, despite a college degree long being considered a pathway to financial security and generational wealth, the debt required to earn one has had the opposite effect for many Black Americans. Black women are particularly vulnerable. Among the most highly educated demographics and often the breadwinners in their families, they also shoulder a disproportionate share of student loan debt. According to recent data, the disparity between Black and white students with student loan debt has nearly tripled.
Over time, Lewis explained, this can lead to a vicious cycle. She described a scenario in which a mother who spends most of her working adulthood years paying down student debt may then have to turn around and take on more debt to either help her children pursue college or reach other goals like homeownership.
“There’s no child or no grandchild that is able to not be a part of that cycle,” she said.
How can we make college more affordable for the next generation?
As the cost of pursuing higher education continues to increase, Lewis said she believes making higher education more affordable, especially for Black students, will ultimately require deeper commitments to scholarship and mutual aid.
“I think that the community is going to have to start being the community,” she said before adding that this means more organizations like churches, sororities, and fraternities could get creative in pulling together funds for students in need in their area.
“Leverage your funds together to present more scholarship opportunities for people
“I always tell people, ain’t nobody gonna remember you two, three generations down; you ain’t do nothing significant,” she noted before explaining how her great-great uncle is remembered as the man who made college possible for her grandmother, a move she said changed the trajectory of her family.
Naturally, her great-great uncle did that simply out of the goodness of his heart to give at least one of his nieces or nephews a leg up, but now she said: “Look, how we remember him.”
“So when you are all said and done,” she added, “What are they gonna know you by?”
