The Education Department announced a long-delayed expansion of a key repayment plan for student loans this week, paving the way for more borrowers to apply.

The new agreement places tight restrictions on the department’s future ability to pass student loan forgiveness.

The U.S. Department of Education plans to end a student loan debt forgiveness program used by millions of Americans. The feds said Dec. 9 that they had reached a proposed court settlement to kill the Saving on a Valuable Education (SAVE) debt relief program.

Students in professional programs would be able to borrow $50,000 a year and up to $200,000 in total. Parent borrowers would be limited to borrowing up to $20,000 a year per student, with a total limit of $65,000 in Parent PLUS loans.

Starting the week of Jan. 7, the Dept. of Education will begin sending notices about paycheck deductions to about 1,000 of five million borrowers in default.

Student loans are back in repayment, and starting in 2026, that also means that collection activity has resumed on student loan debt. Could your student loans cause you to see your tax refund garnished?