New Report Uncovers Alarming Challenges for Americans with Student Debt as the White House, Department of Education, and Congress Threaten to Gut Essential Programs

FOR IMMEDIATE RELEASE

April 9, 2025

Contact:

Natalia Abrams

Washington, DC — Financial security and the economy are top-of-mind concerns for millions of Americans. From inflation to tariffs, many are worried about paying their bills and adjusting their budgets accordingly. Unfortunately, this is not so simple for Americans with student loan debt. The ongoing litigation and challenges against the SAVE Plan have left millions of student loan borrowers in limbo, fueling widespread concern about rising monthly payments and unclear next steps. A new report from the Student Debt Crisis Center (SDCC) reveals mounting challenges within the student loan system, including the ongoing impact of the Department of Education's downsizing, servicer inaction, and poor communication —issues that demand immediate attention and accountability. The report follows a survey of 6,687 individuals detailing their recent experiences navigating the student loan system.

Key survey findings include:

Financial Insecurity Looming: Nearly 9 in 10 (87%) borrowers who are currently enrolled in the SAVE plan are worried their monthly payment will increase if the SAVE plan goes away
Millions SAVE Money Monthly: Nearly 3 in 4 (74%) borrowers enrolled in the SAVE plan saw a decrease in their monthly payment
Affordability is Important: 71% of borrowers are enrolled in an Income-Driven Repayment (IDR) plan
Protect Public Servants: 47% of borrowers are working towards Public Service Loan Forgiveness (PSLF)
Lack of Contact: 3 in 5 borrowers have NOT contacted their servicer since the start of the year

“In a time of financial instability, rising inflation, and growing concerns over the cost of living crisis, borrowers now face an even greater fear: the possibility of their student loan payments doubling. This looming threat only adds to the anxiety already weighing on individuals as they try to navigate their financial futures,” said Natalia Abrams, President & Founder of the Student Debt Crisis Center.

Sabrina Calazans, Executive Director of SDCC, added, “This is an extremely unnerving time for so many individuals and families already struggling to make ends meet. With constantly changing guidance and threats to existing programs, borrowers are extremely hesitant to trust their servicer and the Department of Education. We need lawmakers to act quickly to protect and strengthen existing programs like Public Service Loan Forgiveness and income-driven repayment plans which are financial lifelines that millions of Americans rely on.”

After an effort by the previous administration to explain the existing programs and how millions of Americans can benefit from them, the more recent erratic changes to the system are creating a deep sense of fear and confusion among borrowers, leading to a massive distrust in servicers, the government, and the existing programs that they’re enrolled in. With a new negotiated rulemaking process set to begin, focused on income-driven repayment plans ICR and PAYE and a lengthy SAVE forbearance, the programs that borrowers are familiar with, are now at risk of disappearing. Despite staying informed about repayment options and forgiveness programs, borrowers are stuck, unable to prepare for future changes.

This situation is compounded by the Department of Education’s reduction in force, the removal and reappearance of IDR applications, and the failure of servicers to process them promptly and accurately. Borrowers report a lack of accountability, unhelpful communication, and rising frustration as tensions increase between them and their loan servicers. Many are giving up on seeking support entirely.

The report calls for immediate action from policymakers, institutions, and loan servicers to ensure that borrowers receive accurate information, accessible resources, and the relief they are entitled to. Servicer accountability and transparency are critical to restoring trust and functionality in the student loan system.

As the landscape of student loans continues to shift, SDCC urges all stakeholders to prioritize borrowers through consistent communication, systemic reform, and upholding their rights. We must work together to ensure that millions regain financial stability during an unstable economic period for millions of Americans.

For more information, to schedule an interview, or to request additional data, please contact Natalia Abrams at info@studentdebtcrisis.org.

###

ABOUT Student Debt Crisis Center

Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.