The student loan system is entering a new phase — and borrowers are being forced to adapt quickly. This week, millions of borrowers received notice that it’s time to move on from the SAVE repayment plan, while lawmakers raised concerns about how federal loans are being managed behind the scenes.

At the same time, the government is continuing to clean up past failures in higher education, granting relief to borrowers harmed by predatory schools, while states are taking a harder look at whether certain college degrees are worth the cost.

Here’s a quick look at the most important stories shaping higher education and student finances this week for April 3, 2026.

Headlines at a Glance

• SAVE borrowers are being told to choose a new repayment plan.
• Lawmakers question the shift of student loans to the Treasury Department.
• Thousands of borrowers will receive automatic loan forgiveness.
• States move to eliminate low-earning college programs.

1. SAVE Borrowers Told to Choose a New Repayment Plan

The U.S. Department of Education has begun notifying millions of borrowers enrolled in the SAVE repayment plan that they will need to select a new repayment option.

The transition comes after ongoing legal battles over the program were finally settled over the outcome of the program. Borrowers who do not choose a new plan may be automatically placed into a standard repayment option.

Impact: Many borrowers could see higher monthly payments, and failing to act could result in less favorable repayment terms.

2. Lawmakers Raise Concerns Over Loan Transfer to Treasury

Lawmakers are questioning the transfer of student loan collections to the U.S. Department of the Treasury, raising concerns about borrower communication, servicing quality, and oversight.

The shift is part of a broader restructuring of how federal student loans are managed.

Impact: Changes to servicing and collections could affect how borrowers receive information, manage payments, and resolve issues with their loans.

3. Thousands of Student Loan Borrowers to Receive Automatic Loan Forgiveness

The Department of Education will forgive student loans for approximately 164,000 borrowers due to old borrower defense applications tied to misconduct by certain institutions.

This relief is part of ongoing efforts to address borrower harm from schools that misled students about job outcomes, accreditation, or program quality.

Impact: While this forgiveness provides relief to affected borrowers, it also highlights the importance of evaluating school quality and outcomes before enrolling.

4. States Move to Cut Low-Earning Degree Programs

Lawmakers in Indiana approved legislation targeting college programs with low post-graduation earnings, potentially eliminating or consolidating hundreds of degree programs.

The goal is to align higher education offerings more closely with workforce outcomes and economic demand.

Impact: Students may see fewer program options in certain fields, but also more pressure to consider return on investment when choosing a major.