The Education Department plans to move millions of federal student loan borrowers into the most expensive repayment option if they do not leave the current low-cost plan. This plan, called Saving on a Valuable Education (SAVE), emerged during the Biden administration, but it has been discontinued.

As these borrowers navigate through a malfunctioning repayment system, they are at risk of facing significantly higher payments unless they act to change plans. The program aimed to help borrowers manage their repayment expenses effectively, but now, with its termination, many will experience financial challenges.

The transition process from this defunct plan has been fraught with issues. The previous administration opposed the SAVE program, contributing to its discontinuation. Now, with the Education Department’s decision, borrowers who remain in the old plan must navigate a complex system to avoid increased financial burdens.