What to know about student loan repayment plans and collections

Borrowers face changes to key forgiveness programs and uncertainty around new repayment options

Published on Feb. 10, 2026

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With the end of the SAVE repayment plan, millions of borrowers must transition to new plans, while the future of the Public Service Loan Forgiveness program remains uncertain. The Education Department has delayed involuntary collections on defaulted loans, but borrowers still face challenges affording their payments.

Why it matters

Student loan debt continues to be a major financial burden for millions of Americans, and changes to repayment plans and forgiveness programs can have significant impacts on borrowers' ability to manage their loans. The uncertainty around these programs is causing stress and anxiety for many struggling to afford their student debt.

The details

The SAVE repayment plan, which had some of the most lenient terms, was recently ended through a settlement agreement. The Education Department says it will move the 7.5 million borrowers enrolled in SAVE to other income-driven repayment plans, but the process is still unclear. Borrowers can apply for plans like Income-Based Repayment, Pay as You Earn, and Income-Contingent Repayment, which set payments as a percentage of income. However, applications may take longer to process due to high demand. The future of the Public Service Loan Forgiveness program is also uncertain, as the Trump administration proposed changes that could disqualify some public sector workers. Involuntary collections on defaulted loans remain on hold, but borrowers must still work to rehabilitate their loans.

  • Last year, the long-contested SAVE plan introduced by the Biden administration ended with a settlement agreement.
  • Last month, the Education Department announced it would delay involuntary collections for student loan borrowers in default until the department finalizes its new loan repayment plans.
  • The Trump administration's proposed changes to the Public Service Loan Forgiveness program are expected to take effect in July.

The players

Winston Berkman-Breen

Legal director at Protect Borrowers.

Jill Desjean

Director of policy analysis at the National Association of Student Financial Aid Administrators.

Kate Wood

Lending expert at NerdWallet.

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What they’re saying

“Borrowers 'genuinely struggle to afford their loans and then to hear that the administration is making it more expensive and taking away some of the tools and resources that help folks afford their loans is really, it's panic-inducing.'”

— Winston Berkman-Breen, Legal director at Protect Borrowers (wrsi.com)

“Seven and a half million borrowers who are currently enrolled in SAVE need to be moved to another plan.”

— Winston Berkman-Breen, Legal director at Protect Borrowers (wrsi.com)

“This is something that obviously is very stressful, very nerve-wracking for a lot of people, but given that we don't know exactly how this is going to be enforced, how these terms are going to be defined, it's not really something that you can try to plan ahead for now.”

— Kate Wood, Lending expert at NerdWallet (wrsi.com)

What’s next

The Education Department is expected to develop a plan for borrowers to transition from the SAVE plan to other repayment options.

The takeaway

The changes to student loan repayment plans and forgiveness programs have created significant uncertainty and stress for borrowers, highlighting the ongoing challenges of managing student debt in the United States. Borrowers will need to stay proactive in monitoring developments and exploring their options to find the best path forward.