Panic and confusion: Student-loan borrowers scramble after getting kicked off Biden's key affordable repayment plan

• Trump eliminated the SAVE student-loan repayment plan.
• Enrolled borrowers are concerned about facing higher monthly payments without the plan.
• They also described confusion with the back-and-forth litigation surrounding SAVE.

Ashley Grupe's monthly student-loan payments have been $54 for the past three years. This fall, they'll likely surge to $644.

"When I saw that number, I just froze," the 34-year-old told Business Insider. "That's 'I need a second job' kind of money."

Grupe's payments are skyrocketing after former President Joe Biden's SAVE student-loan repayment plan was eliminated last month.

Dozens of student-loan borrowers told Business Insider they're worried that, with SAVE gone, they won't be able to afford higher monthly payments. While the Trump administration is introducing a new income-driven repayment plan this summer, it's less generous than existing plans and would mean borrowers pay higher amounts over a longer timeline.

Former President Joe Biden created SAVE to give borrowers cheaper monthly payments and a shorter timeline to loan forgiveness. Litigation blocked the plan in July 2024, and enrolled borrowers were not required to make payments. However, in March, a federal judge approved President Donald Trump's settlement to eliminate the plan, forcing 7 million enrolled borrowers back into repayment earlier than anticipated.

Grupe, who works on water quality for the state of Missouri, has $76,000 in outstanding student loans from her two degrees in environmental science. She's pursuing the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after 10 years of qualifying payments. She has 21 remaining payments to qualify for relief. But she said the $644 a month payments she's facing without SAVE put that relief out of reach given her $77,000 income.

The Department of Education has encouraged SAVE borrowers to switch to a new plan as soon as possible, saying it would give them more time to incorporate their new payments into their budgets. Grupe said it's not that easy.

"I knew going in that I was going to have to pay it back. I understand I have that long-term obligation," Grupe said. While she intends to keep making payments, she said the obligation becomes unrealistic "when it absolutely buries you."

'It's been very chaotic'

Joseph Strafaci, 38, said the SAVE plan was "phenomenal." He was making $800 payments, which were affordable given his income as a senior project manager. Without SAVE, he would have been paying nearly $2,000 a month.

When he received an email from the Department of Education telling him to get off the SAVE plan, he said it created confusion surrounding the future of his student-loan repayment.

"It's been very chaotic, and I am panicked because I don't know the timeline for these things," Strafaci said. "I was under the assumption I had until 2028 to make a decision."

Strafaci is referring to the original timeline for SAVE to be phased out. Trump's "big beautiful" spending legislation would have eliminated SAVE in 2028, but the settlement allowed the administration to ax the plan earlier than scheduled.

The Department of Education said enrolled borrowers who have not yet switched plans will begin receiving emails from their servicers in July, giving them 90 days to switch. If they don't, their servicer will move them to a new plan.

"For years, borrowers have been caught in a confusing cycle of uncertainty, but the Trump Administration's policy is simple: if you take out a loan, you must pay it back," said Nicholas Kent, the department's undersecretary.

For Jordan Hendrickson, the confusion continues to permeate. Henrickson, 54, has been making $326 monthly payments on SAVE. They are projected to surge to $2,100, which she said is "anxiety-provoking" and will prevent her from putting any money into her retirement savings.

"It's definitely going to squeeze my budget, along with energy costs, housing costs, all the costs. It's so mind-blowing," Hendrickson said. "The SAVE plan felt like a life vest."

Have a story to share about student loans? Contact this reporter at asheffey@businessinsider.com.