The SAVE plan is defunct. Biden's gone. The plan remains. Seven million borrowers sit in a program that no longer exists, waiting to find out what they owe.
A Trump official confirmed this. Not as a gotcha. Not as a policy win. Just as a fact. The plan died. The borrowers didn't get the memo. Now they're about to get bills they can't afford and default notices they definitely can afford because those are free.
Defunct is doing a lot of work here. The plan isn't paused. It isn't under review. It's defunct. That's a word you use for a railroad company or your uncle's landscaping business. It means dead but still somehow sending invoices.
Seven million people thought they had a deal. They structured their lives around payments they could handle. They made plans. They budged their budgets. Now the federal government is about to bill them like a Collections agency that bought debt for three cents on the dollar and wants full price plus fees.
The risk isn't theoretical. They will get billed. They will not be able to pay. They will default. Default is not a financial strategy. It's what happens when the strategy was trusting a government program named SAVE to actually save you from anything.
Nobody's fixing this. Not Trump. Not Congress. Not whoever's running the Department of Education between appointments. The borrowers are in limbo. Limbo doesn't pause interest. It just delays the part where you realize you're f*cked.
Somewhere right now a borrower is Googling "what happens if I default on student loans" and learning that wage garnishment is not a garnish. It's the whole plate.
Photo by Marek Studzinski on Unsplash
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