The new reality for student loan borrowers
1A
NPR
4.3 • 4.5K Ratings
🗓️ 21 August 2025
⏱️ 38 minutes
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Summary
Now, the federal student loan system is facing significant changes under the Trump administration.
One of the biggest differences is the end of the Saving on a Valuable Education, or SAVE plan, started by President Joe Biden. The income-driven program offers low monthly payments and an expedited path to loan forgiveness.
Republicans challenged the plan in court where it’s still tied up, leaving the 7.7 million enrollees in limbo.
How is the Trump administration overhauling the federal student loan system? And what does this mean for the tens of millions of current and future borrowers?
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Transcript
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| 0:00.0 | I'm Rachel Martin, host of Wildcard from NPR. |
| 0:02.7 | I've spent years interviewing all kinds of people, |
| 0:05.2 | and I've realized there are ideas that we all think about, |
| 0:09.5 | but don't talk about very much. |
| 0:11.8 | So I made a shortcut, a deck of cards with questions that anyone can answer, |
| 0:16.4 | questions that go deep into the experiences that shape us. |
| 0:20.0 | Listen to the Wildcard podcast only from NPR. |
| 0:27.4 | Nearly 43 million Americans have federal student loan debt, totaling more than $1.8 trillion combined. That's according to |
| 0:40.2 | the Education Data Initiative. And now the federal student loan system is facing significant changes |
| 0:45.8 | under the Trump administration. One of the biggest changes is the end of the saving |
| 0:50.2 | unavailable education or save plan, started by President Biden in 2023. The income-driven |
| 0:56.4 | program offers low monthly payments and an expedited path to loan forgiveness. Republicans challenged the |
| 1:02.1 | plan in court where it's still tied up, leaving the 7.7 million people enrolled in the program in limbo. |
| 1:07.9 | There's also changes to loan repayment options and new caps on borrowing next year. |
| 1:13.3 | How is President Trump overhauling the federal student loan system? And what does this mean for the |
| 1:17.7 | tens of millions of current and future borrowers? We get into it after the break. I'm Jen White. |
| 1:23.5 | You're listening to the 1A podcast. Stay with us. We've got a lot to get to. |
| 1:39.9 | Let's meet our panel. Joining us now is Michelle Singletary. She's a personal finance columnist at the Washington Post. Michelle, it's always great to have you. |
| 1:52.7 | Oh, good to be back. Thank you. Also with us is Danielle Douglas Gabriel. She's a national higher education reporter covering the economics of higher education for The Washington Post. Danielle, welcome back. Thanks for having me back. |
| 2:01.1 | And Catherine Lucas McKay. They're an associate director at the Aspen Institute's financial security program, where they lead research on topics like consumer debt and student loans. Catherine, welcome to 1A. Hi, thanks for having me. Let's start with a message |
| 2:06.2 | we got from one of you. I'm calling from St. Louis, and it's on the student loan program. |
| 2:11.5 | And specifically, I've got three complaints or observations. One is on the SAVE program. I realize it's in court adjudication right now, |
... |
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