Back / June 2025 Student Loan Updates: What Borrowers Need to Know Now

June 2025 Student Loan Updates: What Borrowers Need to Know Now

LoanSense|Loan Updates|June 04, 2025

June 2025 has become a defining moment for student loan borrowers. With lawsuits, new forgiveness plans, and fast-approaching deadlines, the stakes couldn’t be higher. This post breaks down the six biggest developments — and what you need to do next to protect your financial future.

1. Supreme Court Blocks $6 Billion in Loan Forgiveness


The Supreme Court has temporarily halted loan forgiveness under the Sweet v. Cardona class action settlement. Over 200,000 borrowers who attended schools like DeVry, Ashford, and University of Phoenix are affected.


If you’re in this group or think you might be eligible, don’t wait — you can still apply individually through Borrower Defense.


Schedule a free Borrower Defense call with LoanSense so we can help you file a strong application backed by documentation.

2. IDR Adjustment Lawsuit & June 30 Consolidation Deadline

A new lawsuit aims to block the Income-Driven Repayment (IDR) account adjustment, threatening forgiveness for millions of borrowers — including many close to the 20- or 25-year mark.


To stay eligible, you must consolidate FFEL or Perkins loans into a Direct Loan by June 30.
Book a call with LoanSense and we’ll walk you through the consolidation process step-by-step — no guesswork.

3. Biden’s New Forgiveness Plan Is Finalizing

The Biden administration is moving forward with a new targeted forgiveness plan under the Higher Education Act. It’s expected to go live in early 2026 and could benefit:

  • Borrowers repaying for 20+ years
  • Those who owe more now than they borrowed
  • Low-income borrowers or those facing hardship
  • Victims of for-profit schools or low-value programs
  • Borrowers who missed earlier relief through PSLF or IDR errors

We’ll notify you as soon as the full application opens.


Sign up at app.myloansense.com to join our software platform and get automatic email updates — no need to manually track announcements.


Book a consult and we’ll help you evaluate your best repayment path based on your goals.

5. Interest Is Stacking Up


Since payments resumed in late 2023, the average borrower has seen their balance grow by $600–$800 — just from interest.


This is especially true if you’re not in SAVE or missing payments. Interest capitalizes fast.


To prevent runaway interest:

  • Make sure you're in a qualified plan
  • Turn on autopay
  • File paperwork on time

LoanSense helps you file fast — and avoid delays that cost you. Get started at app.myloansense.com.

6. Servicer Errors Are Common — Document Everything


Servicing issues like long wait times, incorrect payment counts, and misinformation are still happening every day.


Don’t just rely on phone calls. Put everything in writing — and track it all.
LoanSense stores your IDR filings, PSLF applications, and all forgiveness steps in one place.
Let us help you protect yourself: Sign up for LoanSense to securely document everything — we’ve got your back.

Final Thoughts
This summer could determine whether you qualify for forgiveness or get left behind. From lawsuits to policy shifts, there's never been a more important time to act.

  • Book a borrower defense call
  • Consolidate by June 30
  • Sign up for updates on Biden's new forgiveness plan
  • Prevent interest accumulation
  • Protect yourself with full documentation

Start now at app.myloansense.com — or book a personalized call here.