Considering the average public university student borrows more than $31,000 to get a bachelor’s degree, it’s not surprising that 73% of borrowers associate student debt with stress, anxiety, and depression. According to a recent report in the Education Data Initiative, 42.8 million student borrowers have federal loan debt, with federal debt making up 90.9% of all student loan debt.
Now student loan repayment is changing again, with the Biden-era SAVE plan expected to be eliminated after legal challenges. The SAVE act offered low or $0 payments with accelerated forgiveness. This means that millions of borrowers may be forced to move onto another plan with higher monthly payments.
At the same time, Congress is phasing out income-driven plan options and introducing two new options starting July 1: a new standard repayment plan with fixed payments over 10–25 years and a Repayment Assistance Plan (RAP) based on income, with forgiveness extended to 30 years. Borrowing limits are also changing for graduate students and Parent PLUS loans, while wage garnishment for borrowers in default is set to resume in 2026. With all that on the horizon, it has created added urgency for borrowers to review their repayment strategy.
Student Loan Counseling Can Help
The American College of Education reported that, in addition to anxiety and depression, many borrowers may delay life milestones, like getting married, starting a family, or buying a home, due to student loan balances. But you don’t have to worry about this all alone.
Student loan counseling is often available through a certified nonprofit credit counseling agency. Counselors can help you understand your options for repayment and help with strategies to avoid defaulting on your loans. They can provide a comprehensive analysis of your specific student loan situation, while also providing recommendations based on your financial outlook and goals.
Working with a certified counseling agency comes with no upfront costs and connects you with experienced professionals who understand your options. With a clear plan in place, you can replace uncertainty with a focused approach to student loan repayment.