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Are you *** student loan borrower on the saving on *** valuable education plan, commonly referred to as the save plan? If so, the Department of Education recently announced some big changes that will cost you hundreds of dollars per month if you do not take action. So here’s what’s going on. The Biden administration introduced the save plan back in 2023, saying it would lower the monthly payments of millions of borrowers, some as low as $0. Now, in response, several Republican-led states filed lawsuits to block the plan, arguing it overstepped the Education Department’s authority and would put high costs onto taxpayers. While the plan was in legal limbo, borrowers were not required to make any payments. And after 2 years in litigation, *** federal appeals court effectively ended the plan. This leaves over 7 million borrowers to figure out their next steps. Starting July 1st, anyone still under the safe plan will be contacted by their servicer, who will give them at least 90 days to choose *** new repayment plan. If you don’t take action, your servicer will automatically enroll you into one of the new plans created by the Trump administration’s One Big Beautiful bill. This could mean *** difference of hundreds of dollars on your monthly bills and thousands on your interest paid over the years. So let’s break down the. Options. First, you have the two new plans created by the one big beautiful bill, one with fixed monthly payments for 10 to 25 years and one that takes 1% of your earnings for 30 years. The department says the plans will be ready by July 1st, and going forward, anyone who takes out federal loans after that date can only choose between these plans. There are also income-driven repayment options. But the department will be phasing out two of them by July of 2028, so you’ll need to switch again before then. Ultimately, choosing the best plan is personal. Do you want to pay it off as fast as you can and pay less in interest, or do you want low monthly payments? For immediate next steps, look for updates from your servicer and the Department of Education. Log into your servicer account to review the options to see what plan works best for you and visit studentaid.gov to use *** federal loan simulator to compare plans. Reporting in New York, I’m Ali Jasinski.
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US household debt reaches $18.8 trillion. Here’s how debt changed in the last three months
U.S. household debt grew by $18 billion in the first three months of 2026, bringing the collective debt total to $18.8 trillion, according to the latest data from the Federal Reserve Bank of New York.The small increase comes as three debt categories saw decreases in the billions at the end of March.Every three months, the Federal Reserve Bank of New York releases its Quarterly Report on Household Debt and Credit to provide a snapshot of borrowing and debt trends in categories such as mortgages, student loans, credit cards, auto loans and other types of debts.Where is debt changing?Housing debt, like mortgages and home equity loans, rose by $33 billion from January to March. Mortgages accounted for most of the increase in the category, rising $21 billion, totaling $13.19 trillion at the end of March.Non-housing debt, such as credit cards, student loans, auto and other loans, decreased by $15 billion. The drop comes as credit card balances fell by $25 billion, bringing the total to $1.25 trillion.Student loan balances decreased by $6 billion, edging the total debt down to $1.66 trillion.How does debt differ by age groups?Two age groups saw decreases in debt balances in early 2026. Americans ages 18 to 29 had balances fall from $1.24 trillion to $1.05 trillion, a 15% decrease, and those ages 30 to 39 went from $4.15 trillion to $3.94 trillion. Consumers ages 40 to 49 continue to hold the highest balances of all age groups at $4.92 trillion. But those 70 and older had the largest growth, increasing their balances by 10%, ending March with a total of $1.86 trillion.PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4=
U.S. household debt grew by $18 billion in the first three months of 2026, bringing the collective debt total to $18.8 trillion, according to the latest data from the Federal Reserve Bank of New York.
The small increase comes as three debt categories saw decreases in the billions at the end of March.
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Every three months, the Federal Reserve Bank of New York releases its Quarterly Report on Household Debt and Credit to provide a snapshot of borrowing and debt trends in categories such as mortgages, student loans, credit cards, auto loans and other types of debts.
Where is debt changing?
Housing debt, like mortgages and home equity loans, rose by $33 billion from January to March. Mortgages accounted for most of the increase in the category, rising $21 billion, totaling $13.19 trillion at the end of March.
Non-housing debt, such as credit cards, student loans, auto and other loans, decreased by $15 billion. The drop comes as credit card balances fell by $25 billion, bringing the total to $1.25 trillion.
Student loan balances decreased by $6 billion, edging the total debt down to $1.66 trillion.
How does debt differ by age groups?
Two age groups saw decreases in debt balances in early 2026. Americans ages 18 to 29 had balances fall from $1.24 trillion to $1.05 trillion, a 15% decrease, and those ages 30 to 39 went from $4.15 trillion to $3.94 trillion.
Consumers ages 40 to 49 continue to hold the highest balances of all age groups at $4.92 trillion. But those 70 and older had the largest growth, increasing their balances by 10%, ending March with a total of $1.86 trillion.
