What to Know About Student Loan Repayment Plans and Collections

Borrowers face changes to key forgiveness plans and uncertainty around the end of the SAVE repayment program

Published on Feb. 10, 2026

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It's been a confusing time for people with student loans, with collections restarting, then being put on hold, and changes to key forgiveness plans. The long-contested SAVE plan introduced by the Biden administration ended with a settlement agreement, and President Trump's 'Big Beautiful Bill' introduced new borrowing limits for graduates and raised challenges to the Public Service Loan Forgiveness program. Millions of Americans are behind on loan payments and at risk of default this year.

Why it matters

With over 5 million Americans in default on their federal student loans, and millions more behind on payments, the changes to repayment plans and forgiveness programs have significant implications for borrowers struggling to afford their loans. The uncertainty around the end of the SAVE plan and potential changes to the Public Service Loan Forgiveness program are causing stress and panic for many.

The details

The SAVE plan, which had some of the most lenient repayment terms, was challenged in court and is now ending. The Education Department will move the 7.5 million borrowers enrolled in SAVE to other repayment plans. Borrowers can apply for income-driven repayment plans like the Income-Based Repayment Plan, Pay as You Earn, and Income-Contingent Repayment, which set payments as a percentage of discretionary income. The Trump administration also proposed changes to the Public Service Loan Forgiveness program that could disqualify some nonprofit workers, though this is being challenged. Involuntary collections on defaulted federal student loans remain on hold for now.

  • Last December, the Education Department announced a settlement agreement to end the SAVE plan.
  • 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.

Kate Wood

Lending expert at NerdWallet.

Jill Desjean

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

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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 (wklh.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 (wklh.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 millions of borrowers struggling to afford their loans. Proactive enrollment in income-driven repayment plans and staying informed on the status of the Public Service Loan Forgiveness program will be crucial for borrowers navigating this complex landscape.