The Blubber

Federal Student Loan Payment Hikes Leave Borrowers Struggling

If you’re one of the 42 million borrowers with federal student loan debt, now might be the time to check your payment portal.

Many borrowers are seeing their monthly payments skyrocket due to changes in income-driven repayment programs—a shift that could push many Gen Z and Millennial borrowers toward default.

Payment Increases Shocking Borrowers

“My payment is going to quadruple,” said Ally Rooker in a viral TikTok video. Her monthly student loan payment for her public health degree is set to jump from $250 to $900.

Last month, a federal judge struck down the Biden-era SAVE plan, a repayment program used by 8 million borrowers, ruling that the administration lacked the authority to forgive certain student loan debt. In response, the Trump administration paused all applications for income-driven repayment plans and loan consolidation, leaving many borrowers in limbo.

“What Trump is doing on student loans is literally going to crash the economy,” Rooker added.

Another borrower took to TikTok to share how her husband’s monthly payment jumped tenfold, from $500 to nearly $5,000.

“It’s an obscene amount and a huge portion of our income each month,” she said.

With a 6.3% interest rate on his dental school loans, they are struggling to make progress on the principal balance. The dream of homeownership is now out of reach for at least a decade as they prioritize loan repayment.

“We already have a mortgage payment—and it’s his loans,” she said. “$5,000 is more than a mortgage payment. That would be a very nice house.”

No Clear Resolution in Sight

Borrowers enrolled in the SAVE plan have been able to delay payments due to legal battles that placed loans in forbearance—temporarily pausing payments and freezing interest. However, according to the U.S. Department of Education, this forbearance is expected to end later this year, with payments resuming no earlier than December 2025.

For borrowers facing ballooning payments, the uncertainty continues.