The U.S. Education Department has said more than seven million student loan borrowers enrolled in the Biden-era SAVE repayment plan will begin receiving notices from Friday, instructing them to select a new plan to repay their debt.

The SAVE plan was recently struck down by a federal court, leaving borrowers in forbearance since July 2024 while legal challenges played out. Starting July 1, loan servicers will give borrowers 90 days to choose a new repayment plan, which for most will mean higher monthly payments.

Alexis Arredondo, a 2024 University of California, Los Angeles graduate with a microbiology degree, said he now faces tough choices. A first-generation college student with about $40,000 in debt, Arredondo joined the SAVE plan after graduation while working part-time and freelancing. He said higher monthly payments would be difficult, but a longer repayment period would increase interest costs.

The SAVE plan, one of several initiatives launched under President Joe Biden, offered more lenient terms than traditional plans, including reduced payments based on discretionary income and forgiveness for borrowers who made payments for at least 10 years and owed $12,000 or less.

Under Secretary of Education Nicholas Kent, citing the Trump administration’s perspective, said borrowers are responsible for repaying their loans. Meanwhile, experts warn that borrowers may face increased debt balances, as interest has accrued since the court blocked the plan last summer.

“The promises about fixing the broken student loan system are now colliding with reality,” said Mike Pierce, executive director of the Student Borrower Protection Center.

Notices from loan servicers will be sent in stages, with those enrolled in the SAVE plan the longest receiving them first. Borrowers will need to resume payments as early as this summer under new repayment options, which calculate the most lenient plan at a minimum of 10% of discretionary income.