Monthly Student Loan Payments Skyrocket Under Trump: Borrowers Face Financial Crisis

Millions of Gen Z and Millennial graduates are experiencing a shocking rise in their monthly student loan payments due to changes implemented by the Trump administration.

With the suspension of key income-driven repayment (IDR) plans, many borrowers are finding themselves unable to afford their new payment amounts. The abrupt policy shift has left people panicking, with some turning to social media to express their frustration and fears.

Drastic Increases in Monthly Payments

For many, the increase in loan payments has been overwhelming. Ally Rooker, a borrower with a degree in public health, shared in a viral TikTok video that her payment would jump from $250 to $900. Another borrower reported that her husband’s monthly payments skyrocketed from $500 to nearly $5,000, which she described as more than a mortgage payment.

Attorney Ashley Morgan, who has been using an IDR plan for the past eight years, was also hit hard. "I saw that my payments were going to more than quadruple – from $507.19 a month to $2,463.58 a month – starting in April," Morgan said. "When it's not based on your income, it's not affordable."

This situation arose after a federal judge blocked the Biden-era SAVE plan, a replacement for previous IDR plans that helped millions of borrowers lower their payments. The Trump administration responded by halting all new applications for IDR plans and online loan consolidations. As a result, many borrowers who need to recertify their income are now unable to do so, causing their payments to default to much higher amounts.

Uncertain Future for Borrowers

Borrowers already enrolled in IDR plans such as Income-Contingent Repayment (ICR), Income-Based Repayment (IBR), or Pay As You Earn (PAYE) are now stuck without the ability to update their income information. This means their payments could rise drastically, in some cases aligning with the much higher Standard Repayment Plan.

If borrowers fail to meet their new, inflated payments, they risk defaulting on their loans. Options such as forbearance or deferment exist, but they come with drawbacks and such as interest continuing to accumulate. Financial expert Betsy Mayotte warned that switching to non-income-based repayment plans could also disqualify borrowers from loan forgiveness programs.

Impact on Middle-Class and Young Professionals

For many borrowers, these changes have made financial stability feel impossible. With an average student debt of $38,000, young professionals are struggling to buy homes, start families, or even keep up with basic living expenses. Some, like Robbie Scott, a 27-year-old TikToker, expressed their frustration at following societal expectations and getting a degree, working hard and only to end up stuck in financial hardship.

“What’s sh-tty is, we’re holding up our end of the deal,” Scott said. “We’re staying in school. We’re going to college. We’ve been working since we were 15, 16 years old…doing everything that y’all told us to do so that we can what? Still be living in our parents’ homes in our late twenties?”

Meanwhile, some Gen Zers are reconsidering traditional college paths altogether. With rising costs and uncertainty surrounding student loans, more young people are opting for skilled trade careers. As one electrical apprentice put it in a viral video, "You get paid to go to school, you get paid when you’re at school, and when we graduate, we’ll make $109,000 a year."

Calls for Government Action

With the Department of Education facing mass layoffs and Trump expressing intentions to eliminate it entirely, many borrowers feel abandoned. Morgan and others are urging people to contact lawmakers and demand action before the financial strain worsens.

"I think something needs to be done at the governmental level,” Morgan said. “But until that happens, people need to share their stories and let their congressional representatives know this issue is hurting the middle class."