What’s Next for Your Student Loans? A Guide to Refinancing and Moving Forward

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After years of policy shifts, court rulings, and legislative hurdles, student loan borrowers in the U.S. continue to face uncertainty. While the previous administration made historic strides in student loan forgiveness, debt levels remain higher than before, leaving many wondering what comes next. If you’re a borrower looking for clarity and options, here’s what to know about the current student loan landscape and how refinancing could help.

Clearing up the confusion: student loan forgiveness

Student loan forgiveness has been a hot-button issue, with multiple relief plans proposed, challenged, and, in some cases, successfully implemented. The Biden administration’s attempt at widespread loan cancellation of up to $20,000 in interest per borrower was ultimately denied by the Supreme Court in 2023.

However, targeted student debt forgiveness efforts under the Biden administration still helped provide relief to over five million borrowers. And thanks to adjustments to income-driven repayment (IDR) plans and changes to the Public Service Loan Forgiveness (PSLF) program, borrowers may see some help. IDR caps monthly payments based on income, and PSLF forgives loans for eligible public sector workers after 10 years of payments.

Despite these measures, student debt remains a significant issue. Overall, student debt is higher than it was four years ago. In fact, federal student loan debt went from $1.69 trillion in 2020 to over $1.77 trillion at the end of 2024. This is largely due to accruing interest and new loans issued. With broad forgiveness off the table for now, borrowers must consider alternative strategies to manage their debt.

The state of student loans today

So, where do things stand now? As of 2025, borrowers are navigating a changed landscape:

• Payments resumed: After a three-year pause due to the pandemic, student loan payments officially resumed in late 2023. Many borrowers have faced challenges adjusting to repayment.
• New repayment plans: The SAVE (Saving on a Valuable Education) plan offers lower monthly payments for some borrowers, particularly those with lower incomes. SAVE had additional benefits introduced in 2024, including a reduction in undergraduate loan repayments from 10% to 5%.
• Potential legislative changes: While large-scale forgiveness remains unlikely in the near term, the current administration is exploring ways to expand relief through existing legal channels. However, proposed legislation such as the College Cost Reduction Act (CCRA), which was introduced in 2024, could significantly alter the student loan landscape. The CCRA aims to reduce federal spending on higher education by eliminating certain loan programs, modifying repayment plans, and increasing institutional accountability. It can be argued that these changes may increase costs for borrowers and dismantle consumer protections.

For borrowers struggling with repayment or seeking ways to lower their costs, refinancing could be a smart alternative.

Refinancing your student loans can help you save

For those who don’t qualify for government forgiveness programs or who simply want to reduce their interest rates, refinancing could be a viable solution. Here’s how refinancing can benefit borrowers:

• Lower interest rates: Depending on your credit score and financial situation, refinancing can provide a lower interest rate, leading to significant long-term savings.
• Rate options: Most of the time, refinancing allows borrowers to choose between fixed and variable rates. This puts the control back into the borrower's hands.
• Simplified payments: If you have multiple student loans, refinancing allows you to consolidate them into a single loan with one manageable monthly payment. This reduces your monthly payment, helping you manage your budget.
• Faster repayment: By securing a lower interest rate or choosing a shorter loan term, you can pay off your loans faster and save on interest.
• Provider options: Go shopping for different providers. Compare repayment plans, find if you’re eligible, and look at customer reviews. You’ll find the right provider based on their rates that fit your financial situation.

That said, refinancing isn’t for everyone. If you’re relying on federal protections like income-driven repayment (IDR) plans or, more importantly, the Public Service Loan Forgiveness (PSLF) program, refinancing your loans with a private lender means permanently forfeiting those benefits, including the potential for loan forgiveness through PSLF. However, for some borrowers, refinancing could be a powerful tool to take control of their student debt.

Is refinancing right for you?

The student loan landscape remains complex, but borrowers do have options. Whether you’re looking for lower interest rates, simplified payments, or faster repayment options, refinancing with a trusted lender like SoFi could help you reach your financial goals.

If you’re considering refinancing, take the time to compare rates and terms to determine if it’s the right choice for you. Check your rate with SoFi today and see how much you could save.

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