For millions of Gen Z and millennial borrowers, student loan payments are going from manageable to monstrous, and fast.
Thanks to Donald Trump’s changes to income-driven repayment plans, many are watching their monthly bills quadruple (or worse) overnight.
Take Ally Rooker, a public health grad whose payments are jumping from $250 to $900 a month. Another borrower shared that her husband’s dental school loans will now cost them $5,000 a month, more than a mortgage payment.
As borrowers take to TikTok in full-blown panic mode, the reality is setting in: student debt is becoming completely unmanageable for millions.
- A federal judge blocked Biden’s SAVE plan, an income-driven repayment program benefiting 8 million borrowers.
- The Trump administration immediately halted new applications for income-driven repayment plans and loan consolidations.
- Borrowers who relied on income-based plans are seeing their payments skyrocket, leaving them scrambling for answers.
With over 42 million people holding federal student debt, the impact is massive, and there’s no clear fix in sight.
How This is Breaking Gen Z & Millennials
For many young borrowers, these payment hikes aren’t just inconvenient, they’re life-altering:
- Homeownership? Forget it. With student loan payments rivaling mortgages, buying a house is out of reach.
- Job choices shrink. Many took public service or lower-paying jobs assuming their payments would be manageable, now they’re stuck.
- Defaults are looming. With payments exceeding entire paychecks, some borrowers are on the verge of financial collapse.
Robbie Scott, a 27-year-old, vented in a viral TikTok:
“We did everything right. We went to college. We worked hard. And now? We’re still stuck living at home because of student loans.”
What Can Borrowers Do Now?
If your payment just exploded, here’s what experts suggest:
- Check Your Loan Servicer Portal – Don’t ignore the changes. Log in and see what you owe ASAP.
- Explore Forbearance (If You Can Afford It) – Some borrowers may temporarily pause payments, but interest will keep building.
- Contact Your Loan Servicer, If You Can Get Through – With the Department of Education facing massive layoffs, getting help might take time.
- Talk to Your Representative – Some lawmakers are pushing for loan relief solutions, but they won’t act unless voters demand it.
The Future of Student Loans Under Trump
Trump has made it clear that he plans to dismantle the Department of Education entirely. If that happens, student loan programs could change dramatically again, but there’s no guarantee those changes will help borrowers.
For now, Gen Z and Millennials are left paying the price, literally. If you’re holding federal student loans, buckle up. The student debt crisis just got a whole lot worse.
