President Trump's student loan repayment overhaul is raising monthly bills and straining family budgets.
Here's what to know
Jodi Sprague, a 54-year-old middle school teacher in Georgia, thought her family had already done the hard part by planning carefully, living modestly, and preparing for student-loan bills years in advance, according to Business Insider. Then she learned her monthly payment was set to jump from $404 to $1,014 — a 150% increase.
The increase is rippling through the entire Sprague household, putting housing help for their daughter Olivia, 19, at risk while she attends college, adding pressure to their daughter Evelyn, 17, as she weighs career plans, and making retirement feel even farther out of reach.
That increase stems from a federal student-loan repayment overhaul that took effect on July 1 under President Donald Trump, ending the Biden-era SAVE plan. The administration said the changes were meant to simplify repayment, curb borrowing, and pressure colleges to lower tuition.
The Spragues are far from alone. Business Insider reported that more than 1,000 borrowers told the outlet that rising monthly bills were leading them to pick up extra work, postpone retirement, and worry about default.
More background
Jodi's loan balance from degrees at Kennesaw State University and the University of West Georgia stands at $144,000.
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"We took the maximum out," she said. "We were able to survive because of the student-loan money."
That survival mindset has shaped the family for years. The Spragues filed for bankruptcy in 2011 after Jodi built up credit card balances she couldn't pay off. They also spent a school year in a rental after a tree tore through their roof.
Those experiences led Jodi and Paul to speak candidly with their daughters about money.
Olivia, who received Georgia's HOPE scholarship, said, "I remember being in the car line in the morning, and my mom was like, 'You have to get good grades so you can go to school for free.' So it's always been in the back of my mind that school is really expensive."
Olivia is now borrowing $6,000—her federal maximum—to cover rent and other expenses so her mother doesn't have to borrow more.
Paul said retirement is "just not a reality right now," and Evelyn, who wants to go into forensic pathology, is already rethinking the price of medical school.
What can be done?
Their first move has been to spend less. The family canceled a September trip to Florida, cut back on streaming services, and is trying to avoid nonessential costs. Olivia also opted out of sorority rush because of the expense.
Jodi is about three years away from Public Service Loan Forgiveness, which cancels debt for eligible government and nonprofit workers after 10 years of qualifying payments.
For payments on new income-driven repayment plans to count toward that goal under the new rules, they have to be made exactly on the due date.
All of this has led to family conversations about trade school and about whether a degree makes financial sense for a particular career.
"It's going to hurt," Jodi said, "but I'm going to pay them."
Where can I learn more?
The Spragues' story is not unique. Families across the country are having to squeeze household budgets after one policy change or price jump can force hard tradeoffs. The articles below look at other costs families are struggling to absorb, from rising energy burdens to the fear that everyday essentials will keep getting more expensive.
• MIT researchers found a growing number of Americans are carrying heavier energy burdens as populations shift.
• Across the US, rising costs for basics have left nearly 9 in 10 Americans bracing for worse.
• In Maryland, officials launched a $200 million rebate aimed at making home energy costs more affordable.
Monthly expenses can reshape decisions about housing, work, and long-term plans, which is why a sudden jump in one bill can be a very big deal for families on already tight budgets.
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