Before the presidential administration changes, student loan borrowers should take these steps.

• Federal student loan borrowers in the country should prepare for changes when President Joe Biden leaves office at the end of the month.
• Experts advised borrowers to take certain steps now in order to prepare for the Trump administration.

Federal student loan borrowers in the country should prepare for changes in their debt when President Joe Biden leaves office at the end of the month.

The Saving on a Valuable Education plan, or SAVE, may not survive as President-elect Donald Trump takes a more critical view of student loan forgiveness policies.

Betsy Mayotte, president of The Institute of Student Loan Advisors, believes that SAVE may disappear, unfortunately, for those concerned about its future.

Experts advised borrowers to take certain steps now in order to prepare for the Trump administration.

Understand your remaining relief options

It is crucial for borrowers to be aware of the available relief options after Biden's student loan forgiveness plans were withdrawn and the SAVE plan's future is uncertain.

Certain federal student loans can be canceled after a decade of payments for not-for-profit and government employees, as per the Public Service Loan Forgiveness program, which was signed into law by President George W. Bush in 2007.

"Mayotte stated in a November interview that PSLF is enshrined in federal law by a Republican president, and it would require an act of Congress to abolish it. However, not all Republicans are in favor of its elimination, making such a law change highly unlikely."

If lawmakers abolished the program, it would only affect new student loan borrowers, but current borrowers would still be eligible for loan forgiveness, Mayotte stated.

Those with cash accounts benefit from 'higher for longer' interest rates. Credit card debt is set to hit a record level. Only 21% of workers take advantage of Roth 401(k) savings.

The U.S. Department of Education has recently announced that it is reopening two student loan repayment plans, providing borrowers with more affordable options to tackle their debt. However, the SAVE plan remains tied up in legal troubles.

The Pay As You Earn Repayment Plan and the Income-Contingent Repayment Plan are both income-driven repayment plans that set monthly bills based on income and family size, leading to debt forgiveness after a certain period. The Education Department has announced that these plans will be available for enrollment until July 1, 2027.

Under the Trump administration, borrowers experiencing greater financial difficulties may still be eligible for various deferments and forbearances.

If you're out of work, you can request an unemployment deferment with your servicer. If you're facing another financial challenge, you may be eligible for an economic hardship deferment. Those who qualify for a hardship deferment include individuals receiving certain types of federal or state aid.

Apart from the commonly known student loan deferments, there are lesser-known options such as the graduate fellowship deferment, military service and post-active duty deferment, and cancer treatment deferment.

Make sure your records are up to date

During the Trump administration, student loan borrowers faced a decrease in relief, according to consumer advocates. In response, the Biden administration implemented changes to enhance existing student loan relief programs.

To ensure accurate loan details and stay updated on correspondences, Elaine Rubin, director of corporate communications at Edvisors, advised borrowers to check their loan status after the change in administrations.

To determine if they qualify for loan forgiveness, borrowers should request their servicer's most recent information on the number of qualifying payments they have made according to their repayment plan or PSLF.

Keeping track of your loan repayment progress and current balance is crucial in case of any miscommunications with the Trump administration, consumer advocates advised. This will aid in making a strong case for any relief you may be entitled to.

You can report issues with your student loan servicer to the Education Department's feedback system at Studentaid.gov/feedback or to the Federal Student Aid's Ombudsman.