America’s student loan crisis continues to dominate headlines in 2025, as millions of borrowers face mounting payments, policy shifts, and political debates. With the presidential campaign season in full swing, both borrowers and policymakers are grappling with how to address over $1.7 trillion in federal student debt. Here’s a comprehensive look at the latest developments.
Repayments Are Back—and Many Are Struggling
The COVID-era federal student loan payment pause officially ended in late 2023. Since then, borrowers have resumed payments, but new data from the U.S. Department of Education in early 2025 shows that delinquency rates are rising. Many Americans report difficulty readjusting their finances, especially with inflation and high housing costs.
Biden Administration’s Relief Efforts Continue
After the Supreme Court blocked President Biden’s broad forgiveness plan in 2023, the administration pivoted to more targeted measures. Throughout 2024 and into 2025, the Department of Education has approved billions in cancellation for specific groups, including:
- Public Service Loan Forgiveness (PSLF): Expanded eligibility and streamlined application processes have resulted in more teachers, nurses, and government workers receiving debt relief.
- Borrower Defense and School Closures: Students defrauded by now-defunct colleges have seen significant portions of their debt cancelled.
- Income-Driven Repayment (IDR) Adjustment: The “one-time account adjustment” has helped many long-term borrowers move closer to forgiveness.
Still, broad-based forgiveness remains off the table for now.
The SAVE Plan: A Lifeline for Many
The Saving on a Valuable Education (SAVE) plan is now fully in effect. SAVE offers the most affordable monthly payments yet for many borrowers, with some qualifying for $0 monthly payments based on their income and family size. The plan also features accelerated forgiveness for smaller loan balances and eliminates interest growth for many struggling borrowers.
Borrowers are encouraged to log into studentaid.gov and check if SAVE or another income-driven plan can lower their payments.
Political Pressure Builds Ahead of 2025 Election
Student debt is a key issue in the 2025 presidential campaign. Candidates across the political spectrum are proposing new solutions—from tuition-free community college to expanded forgiveness plans or even complete overhauls of the federal loan system. Advocates for student borrowers say real, long-term reform is still needed to prevent future generations from falling into the same debt trap.
What Borrowers Should Do in 2025
- Review Your Repayment Plan: Make sure you’re in the best plan for your situation. Switch to SAVE or another income-driven plan if you qualify.
- Watch for Scams: With new programs and relief measures, scams targeting borrowers are on the rise. Rely on official government websites for information.
- Stay Informed: Policy changes and new relief efforts are possible as the election approaches. Sign up for updates from your loan servicer or the Department of Education.
Final Thoughts
America’s student loan crisis is far from over, but significant relief is reaching some borrowers in 2025. As the political debate continues and the future of higher education remains uncertain, it’s crucial for borrowers to stay informed and take advantage of every available resource.
