SAVE Plan Termination Forces 7.7M Borrowers Into Repayment Shuffle
The Biden administration's SAVE student loan repayment plan faces dissolution after a settlement between the Education Department and litigating states. This leaves 7.7 million borrowers—many paying $0 monthly—scrambling for alternatives like Income-Based Repayment plans.
The abrupt policy reversal creates financial uncertainty for a demographic that overlaps significantly with crypto's retail investor base. Historically, debt-laden millennials have turned to digital assets as alternative wealth-building vehicles during periods of economic stress.
Market observers note increased trading activity in microcap tokens (DOGE, SHIB, PEPE) and decentralized finance protocols during previous student loan payment pauses—a pattern that may reemerge as these borrowers reallocate discretionary income.
