Common Student Loan Misconceptions in 2025

In 2025, student loan borrowers faced constant policy changes, legal challenges, and conflicting headlines. While information was everywhere, clarity often wasn’t. As a result, many borrowers made decisions—or delayed them—based on misunderstandings that quietly affected their long-term outcomes.

Below are some of the most common misconceptions our experts helped borrowers navigate throughout the year.

If My Payment Is Low, I’m on the Right Plan

A low monthly payment can feel reassuring, but it doesn’t always mean you’re on the best path. Many borrowers focused only on affordability without understanding how interest accrual, forgiveness timelines, and plan eligibility work together.

Expert insight: The best repayment plan balances affordability today with long-term strategy.

If a Plan Is on Hold, My Loans Are on Pause

Legal challenges and administrative pauses led many borrowers to believe all loan activity had stopped. In reality, interest accrual and forgiveness progress varied depending on the plan and timing.

Expert insight: Not all pauses are equal. Understanding which periods count—and which don’t—is critical.

SAVE Was the Only Smart Option

SAVE dominated headlines in 2025, leading many borrowers to believe it was the only viable income-driven plan. While SAVE offered strong benefits, it was never universal and did not fit every borrower’s long-term goals.

Expert insight: Other repayment options like IBR and standard plans still matter.

Higher Income Means I Don’t Qualify for Income-Driven Repayment

Many borrowers ruled themselves out of income-driven plans based solely on income. Eligibility rules are more complex, and recent changes expanded access to plans many borrowers assumed were unavailable.

Expert insight: Eligibility formulas—not assumptions—determine options.

My Servicer Will Tell Me If I Qualify for Forgiveness

Servicers process payments, but they don’t proactively monitor forgiveness progress or strategy. Borrowers often assumed someone else was tracking eligibility for them.

Expert insight: Forgiveness requires active participation and documentation.

The Big Takeaway from 2025

Student loans are no longer a set-it-and-forget-it system. Borrowers who fared best in 2025 were proactive, reviewed their plans regularly, and adapted to both policy changes and life events.

Before making decisions based on headlines, borrowers should review their full loan picture and understand how today’s choices affect tomorrow’s outcomes.

Don’t Rely on Headlines Alone! Log into Student Debt Solutions to review your full repayment picture and build a plan that supports your long-term goals.