They Were Nearly Done With Their Student Loans, but Then Came Trump

STACY ECK HAD JULY 15 of this year marked on her calendar. It was the day she would have made enough student-loan payments to get $100,000 of remaining payments wiped out.

- OYIN ADEDOYIN

A few days after she made what she thought was the final payment, she learned forgiveness wasn't happening.

On July 18, a federal appeals court halted the Saving on a Valuable Education Plan, or SAVE, which had enrolled some eight million people, including Eck. For borrowers promised a lighter burden on their $1.6 trillion in debt by President Biden's White House, SAVE's state of limbo suggests their loans will follow them well into the next administration.

President-elect Donald Trump isn't expected to defend the program or continue most other Biden loan initiatives.

The threat to SAVE was a particular blow for borrowers like Eck, a school counselor in Mishawaka, Ind., who are also part of an overlapping program to forgive debt for public-service workers. They stood to have their remaining loan balances cleared if they made 120 qualifying payments, typically equating to a decade of service. By the time SAVE was halted, 118 of Eck's payments had been approved.

"It was like a punch to the gut," said Eck, age 40.

Borrowers say they are spending hours on the phone with student loan servicers, who are giving them confusing and sometimes misleading information. They have taken to Facebook groups and Reddit threads to crowdsource information and ask for advice. Some feel they can't leave their jobs, lest they no longer qualify for forgiveness. Others are hesitant to shell out for renovations or vacations.