Four things Michiganders should know about federal student loan changes

April 6, 2026

The federal government is eliminating the Biden-era SAVE student loan repayment plan, requiring 7. 5 million borrowers nationwide, including roughly 240,000 in Michigan, to choose new repayment options within 90 days. Michigan residents collectively owe $51.

Who is affected

7.5 million student loan borrowers nationally enrolled in the SAVE plan
Approximately 240,000 Michigan student loan borrowers who were enrolled in SAVE
Michigan residents holding $51.6 billion in federal student loan debt
Michigan high school seniors (class of 2026) planning to attend college
Graduate students and parents of students facing new borrowing caps
Middle-class families financing higher education
Future student loan borrowers who take out loans after July 1
20-somethings and 30-somethings currently in loan repayment

What action is being taken

The US Department of Education is notifying 7.5 million borrowers to select new repayment plans
Federal loan servicers are directly contacting borrowers and communicating when their 90-day countdown starts
The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) is holding two webinars this month focused on student loans
67 Michigan school districts are implementing programs requiring students to complete the FAFSA or opt-out forms to graduate

Why it matters

This represents a significant policy shift affecting millions of borrowers who face uncertainty about their repayment obligations and monthly payment amounts. The elimination of the SAVE plan, which based payments on income and offered accelerated loan forgiveness, means borrowers may face higher monthly payments under new plans. The new borrowing caps for graduate students and parents, combined with the removal of unemployment and hardship deferment options, creates additional financial barriers for families trying to finance higher education, particularly affecting middle-class families. With Michigan residents holding over $51 billion in student loan debt, these changes have substantial economic implications for the state's population and could impact college accessibility for future students.

What's next

July 1: Two new repayment plans launch—the Repayment Assistance Plan (income-driven) and the Tiered Standard Plan
July 1: New borrowing caps for graduate students and parents take effect
July 1: Elimination of deferment options for unemployment or economic hardship takes effect
Borrowers have at least 90 days from notification to select a new repayment plan
Borrowers who don't select a plan will be automatically enrolled in either the Standard Repayment Plan or the new Tiered Standard Plan
MiLEAP will hold two webinars this month on student loans

Read full article from source: bridgedetroit.com