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Federal student loans have been upended by litigation and legislation. Here’s what you need to know to repay your loans, avoid tax bombs and more.
Aug. 23, 2025, 5:00 a.m. ET
The student loan landscape has become so complicated that many borrowers who simply want to pay back their federal loans need a detailed road map.
Not only are the options mind-numbingly confusing, but one wrong move can throw borrowers in repayment off course, costing them even more time and money.
The many changes, created both by the giant reconciliation law and legal challenges to the Biden-era repayment plan known as SAVE, have left many borrowers frustrated and unsure of what to do next.
After all, the rulebook isn’t supposed to change once you’ve already entered the system, and there are still many unanswered questions. In the latest twist, the Trump administration proposed new rules that could restrict who can participate in the loan forgiveness program for public servants.
This guide will try to help you sort through your options as they stand now, alert you to hidden obstacles and let you know when you need to act with a sense of urgency given impending deadlines.
Are you enrolled in SAVE and unsure of what your next move should be? A parent with PLUS loans? Or maybe you’re nearly done with income-driven repayment — and worried about getting loan forgiveness in time to avoid a giant tax bill.
