Thousands of American student loan borrowers face a sharp rise in monthly instalments following the repeal of a widely used income-based repayment scheme. President Donald Trump's new legislation, dubbed the One Big Beautiful Bill (OBBB), signed into law on 4 July 2025, introduces sweeping changes to the US federal student loan system.
The most controversial aspect of the bill is the elimination of the SAVE (Saving on a Valuable Education) scheme, which previously allowed borrowers to make repayments based on their earnings. From 1 August, an estimated 460,000 students will no longer qualify for the plan, sparking concern among low-income households and public sector workers.
