Missoulian Maggie Riddell says the income-based SAVE repayment plan helped her afford her first steps out of college. She graduated from the University of Montana in 2022, and says she has about $30,000 in student loan debt.
Her balance hasn’t grown in more than a year due to a court battle that froze interest and payments for those on the SAVE plan. That changes on Aug. 1. The Trump Administration says interest for SAVE plan borrowers will start accruing again — but required monthly payments will stay on hold for now.
Riddell says the short notice has left her confused about her options.
“I feel like no one actually knows exactly how all of this works,” Riddell told MTPR in a phone call.
Borrowers will be pushed into one of two repayment options over the next several years. It’s part of the Trump Administration’s efforts to reshape the federal student loan system. The short-lived SAVE plan will be phased out completely.
Current SAVE plan borrowers can voluntarily pay down interest as it accrues, or apply for a different repayment plan. But, the education department is straining under a backlog of applications for those plans.
The Student Borrower Protection Center reports about one in ten Montanans carry a student loan balance with a combined total of $5 billion in debt.
