An Education Department spokesperson said the lowest monthly payment option was the SAVE Plan, a Biden-era plan that would cap payments at 5 percent of the borrower’s discretionary income for undergraduate loans and 10 percent for graduate loans. It has been blocked by the courts since June 2024.

The Big, Beautiful Bill passed by Congress will end income-driven plans like SAVE and PAYE, potentially doubling monthly payments and leading to a surge of defaults. READ MORE: