What you need to know about massive changes to the federal student loan system

WSKG

TURNER: Now, Mayotte says, those SAVE borrowers will have to change plans and find a way to afford what will likely be higher monthly payments. But even changing plans is about to get weird. SAVE isn’t the only one going away. And starting in July, new borrowers will have just two plans to choose from. Next year’s changes aren’t just around repayment either. Up until now, graduate students could basically borrow as much money as they needed.

TURNER: Which leads us to one thing that Yu, Mayotte and Cooper all pretty much agree on.

YU: We are currently at, basically, the precipice of a default cliff.

MAYOTTE: I really do think we’re headed for historic default rates.