Technologies
460,000 Student Loan Borrowers Seeking Lower Payments Will Be Denied. What to Do If You’re One of Them
Most applicants were eligible for SAVE, which has been struck down. Here’s how to apply for other repayment plans.
Nearly half a million federal student loan borrowers who applied for lower monthly payments will be denied by the Department of Education.
Based on internal documents obtained by Politico, the department is rejecting 460,000 student loan borrowers who selected the lowest payment option based on their income. For most applicants, that was the Saving for a Valuable Education repayment plan.Â
SAVE was struck down by a federal court in February, so how were people still applying for the plan? It’s likely the Education Department is still processing applications submitted before the Trump administration removed the SAVE plan as an option on Feb. 21, 2025, said student loan expert Mark Kantrowitz.Â
As of June 30, the department reported 1.5 million pending applications for borrowers who are seeking Income-Driven Repayment plans. It processed 186,731 applications in June.
The Department of Education did not immediately respond to a request for comment.
Processing delays are the latest hurdle for borrowers trying to navigate student loan repayment. Millions of SAVE borrowers’ loans are currently in a general forbearance, with payments expected to remain on hold until mid-2026. However, the Department of Education announced this month that those loans will start accruing interest again on Aug. 1, so borrowers may be feeling pressured to choose another repayment program.Â
If you’ve applied for a repayment plan, here’s what you need to know about the status of your application and when you could start repayments.
Read more: SAVE Student Loan Borrowers Have Less Than 2 Weeks Before Interest Restarts. Here’s What to Do
How can you find out the status of your loan and repayment plan request?
If you applied for a new repayment plan and are denied, your loan processor should notify you when your application has been processed. You can also check the status of your plan request by logging into your StudentAid.gov account and going to the “My Activity” page. Your application should be listed as “In Review”, “Action Required” or “Completed or Closed.”Â
Although the Federal Student Aid site says processing typically takes about 30 days, it notes you should expect delays due to the high volume of requests.
What happens if I’m rejected for a repayment plan?
If you applied for an income-driven repayment plan and were rejected, you may be placed in a standard 10-year repayment plan if you don’t choose another repayment plan, Kantrowitz said. “That’s typically what happens when a borrower is no longer eligible for an income-driven repayment plan.”
However, you can apply for another repayment plan at this time. The other repayment plans are also in a bit of a transition period since the Republican-led One Big Beautiful Bill Act was passed. Existing borrowers can still sign up for the Income-Based Repayment plan. Two other income-driven repayment plans, income-contingent and PAYE, are still options on the federal student loan site, but will be phased out.
Existing borrowers will also have the option to enroll in the Repayment Assistance Plan, a new plan that was passed in the bill, but this option won’t be available until next year.Â
“The best option for most borrowers who were in the SAVE repayment plan is IBR, since IBR still qualifies for forgiveness, while ICR and PAYE do not,” Kantrowitz said. “[Previous] payments made under SAVE, ICR, PAYE, REPAYE and IBR count toward IBR forgiveness.”Â
If you’re a SAVE borrower who applies for a new repayment plan and it’s held up by processing delays, your loans should remain in good standing while you’re waiting. However, interest will start accruing next month, so you may consider making interest-only payments while waiting for your application to process.
Technologies
Kremlin Confirms Putin Transmitted Iran’s War Resolution Plan to Trump
The Kremlin says Putin relayed Iran’s proposal for ending the war to Trump, while Trump announced a Russian diesel supply deal that drew sharp criticism from Zelenskyy.
Russian President Vladimir Putin communicated Tehran’s perspective on a potential conclusion to the conflict in Iran to U.S. President Donald Trump, according to Russian state media reports on Saturday.
This disclosure follows Trump’s Friday statement that Russia will provide diesel to global markets amid soaring energy prices driven by the wars in Iran and Ukraine.
Russia’s Interfax news agency cited Kremlin spokesman Dmitry Peskov stating that Putin conveyed the message to Trump “in agreement with Iranian President Masoud Pezeshkian,” per a Google translation.
Additional Russian media accounts indicate Putin spoke with Trump by phone after meeting Pezeshkian on the margins of a summit in Turkmenistan.
Interfax did not detail the specifics of how Iran envisions the war â which erupted on Feb. 28 with U.S. and Israeli airstrikes on Iranian targets â reaching an end.
The White House did not immediately respond to Verum’s emailed request to confirm the reported conversation between Putin and Trump.
Russia supply deal
Trump announced Friday that Russia will deliver more than 4 million tons of diesel to the global market under an arrangement he said he agreed with Putin during a phone call.
Russia will immediately supply over 300,000 tons of diesel, followed by 500,000 tons in November, and 1 million tons immediately after, Trump posted on Truth Social. Moscow will then provide another 3 million tons of diesel contingent on the condition of Russia’s refineries, Trump added.
The Treasury Department temporarily waived sanctions on Russian diesel through April 2027 under a general license issued Friday.
Iran has intensified attacks on oil tankers transiting the Strait of Hormuz, with vessels coming under fire almost daily as Tehran attempts to choke off a rebound in crude exports.
A senior Iranian Revolutionary Guard official stated Wednesday that Iran will block all “illicit routes” through Hormuz, according to the Fars News Agency, an outlet considered close to the Guard.
The surge in tanker attacks coincides with crude oil exports from the Middle East rebounding in September to prewar levels, largely because the U.S. military escorted ships through Hormuz along Oman’s coast.
An interim agreement signed in June between the U.S. and Iran to pause hostilities to allow for negotiations quickly collapsed.
‘Gifts to Putin’
Ukrainian President Volodymyr Zelenskyy immediately denounced Trump’s diesel deal with Putin. Ukraine’s leader warned that easing sanctions without a commitment from Russia to de-escalate the war will only prolong it.
“Gifts to Putin will not bring peace or any benefit to the civilized world,” Zelenskyy said in a social media post. “Russia will ‘repay’ the diesel with further terror and perfidy. Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.”
Diesel prices have surged worldwide as Ukraine has pounded Russian refineries, forcing Moscow to ban diesel exports to global markets. Iran and its Houthi allies have also attacked refineries in the Middle East, further constraining fuel supplies.
Trump faces mounting political pressure to lower fuel prices ahead of the November midterm elections. Republicans confront competitive races in conservative strongholds like Iowa, where farmers feel the pinch of high diesel prices.
Technologies
AI is Changing How Lawyers Work â and Putting the Billable Hour Under Pressure
AI is reshaping the legal industry by reducing the time needed for routine tasks, challenging the traditional billable hour model, and changing how lawyers learn and practice.
Artificial intelligence is now used by almost 90% of legal professionals in the U.K. and Ireland, and itâs putting one of the professionâs oldest conventions â the billable hour â under the microscope. Thatâs according to legal software company Clioâs U.K. & Ireland Legal Insights Report 2026.
It found that among firms using AI, almost 80% said they can handle more work without increasing resources, while over 70% said it cut costs by absorbing administrative work once done by support staff.
As a result, AI is challenging some of the assumptions on which the legal profession was built, forcing firms to reevaluate how their lawyers spend their time, how they charge for it and how new lawyers learn the ropes. You canât charge 16 hours for something that takes 16 secondsNick Rowles-DaviesLexolent Some of the U.K.âs biggest firms are already putting this into practice.
A&O Shearman has worked with legal AI company Harvey to develop artificial intelligence agents for tasks, including reviewing loan agreements and analyzing regulatory filings, which it says can complete in minutes work that previously took several hours. Slaughter and May, meanwhile, has rolled out Harvey across all practice areas this year, including for regulatory research and document analysis.
Billable hour pressure The billable hour is central to the business model of many law firms, but when AI significantly reduces the time lawyers spend sifting through and drafting documents, the economics are no longer so straightforward. âYou canât charge 16 hours for something that takes 16 seconds,â Nick Rowles-Davies, founder and CEO of legal finance fund Lexolent, based in London and Dubai, told CNBC.
About one in five firms that have widely adopted AI report difficulty meeting billable-hour targets, according to Clioâs report. Globally, senior legal leaders expect the share of work charged by the hour to fall from 72% to 44% over the next two to three years, according to a Deloitte survey.
Routine work is the most exposed, Rowles-Davies said. âIf youâve got standard documents and youâre just putting in detail, then clearly thatâs an automatic process.â But complex legal work still requires human judgment, he added, particularly when interpreting AI output and determining the right strategy for a client.
Lawyers [are] telling us that their day is getting betterJoshua LenonClio
AI and workloads
Whether AI efficiencies ultimately make lawyersâ working lives better may depend on what firms do with the time they get back. Clioâs report found that 51% of legal professionals work evenings, but only 32% want to, while 22% work weekends compared with 11% who would choose to.
Joshua Lenon, Clioâs New York-based lawyer-in-residence, believes some lawyers are already seeing the benefits. âLawyers [are] telling us that their day is getting better,â Lenon told CNBC, as AI becomes more commonplace.
âPeople are really looking at these tools and saying, âThis is making work better.ââ
Technologies
Trump’s diesel agreement with Putin accused of contradicting Russia sanctions law
Ukraine President Volodymyr Zelenskyy said in a searing statement that the U.S. easing sanctions on Moscow “plays into Russia’s hands.”
President Donald Trumpâs Friday announcement that Russia will supply diesel fuel to the global market marked an apparent pivot from recent efforts to pressure Moscow to end the Ukraine war by targeting Russian energy exports.
Trump claimed the move, unveiled with less than a month left in an affordability-focused midterm election, would swiftly bring down record-high diesel prices.
But commentators and critics were quick to highlight contradictions between the new policy and prior efforts by the U.S. to clamp down on Russian oil sales.
Those efforts most recently included the enactment of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, empowering Trump to impose tariffs up to 100% on the top purchasers of Russian crude oil or gas, among other restrictions. Trump signed the bill into law just three weeks ago.
âCongress just passed a law giving Trump the power to impose new tariffs on major buyers of Russian oil & gas,â Scott Lincicome, vice president of the libertarian Cato Institute, said on X after Trumpâs Friday announcement.
âCan America tariff America?â he quipped.
Sen. Richard Blumenthal, D-Conn., a member of the Senate Ukraine Caucus, accused Trumpâs latest move of being âdirectly contrary to Congressâs intent in our bipartisan sanctions bill.â
Peter Harrell, visiting scholar at Georgetown University Law Centerâs Institute of International Economic Law, in an X post said that the relaxation of Russian diesel restrictions âpretty much proves the point that the Graham Russia Bill was not going to force the Trump Administration to increase economic pressure on Moscow.â
Some of the criticism crossed party lines.
âThrough the Lindsey O. Graham Sanctioning Russia and Iran Act, we gave the president significant authorities and leverage against China and Russia to bring Putinâs war to an end with a negotiated settlement,â Rep.
Michael McCaul, R-Texas, said in an X post. âUnfortunately, while I understand the desire to bring down diesel prices, I am concerned the lifting of sanctions on Russian oil will only fund the Kremlinâs war machineâemboldening more violence and destruction, as we have seen in recent days,â McCaul said.
The White House did not immediately respond to CNBCâs questions about the diesel agreement with Russia.
Less than a year earlier, the Trump administration slapped sanctions on multiple Russian oil companies in response to what it called âRussiaâs lack of serious commitment to a peace process to end the war in Ukraine.â
Trump also had previously slammed NATO allies for continuing to buy Russian oil. In a September 2025 Truth Social post, he wrote, âthe purchase of Russian Oil, by some, has been shocking! It greatly weakens your negotiating position, and bargaining power, over Russia.â
Later that month, Trump again harangued world leaders for doing business with Russia.
âTheyâre funding the war against themselves. Who the hell ever heard of that one?â he said in a speech at the United Nations General Assembly. âThey canât be doing what theyâre doing. Theyâre buying oil and gas from Russia while theyâre fighting Russia.â
Trump announced the diesel deal in a Truth Social post Friday afternoon after what he described as a âhighly successful discussionâ with Russian President Vladimir Putin.
Under the agreement, Russia will immediately supply more than 300,000 tons of diesel, then another 500,000 tons in November, followed by 1 million tons âimmediately thereafterâ and 3 million more depending on refinery conditions, Trump wrote.
The Treasury Department soon after said that Trump directed the Office of Foreign Assets Control to immediately issue a âtemporary general license to allow the supply of Russian diesel to the global market.â OFAC specified that the sanctioned transactions will be authorized for about six months, until April 7.
Russia seemed to celebrate the move. âRussia-US cooperation on diesel and energy will benefit the world,â an X account associated with Putinâs economic envoy Kirill Dmitriev said in response to the announcement.
But Ukraine President Volodymyr Zelenskyy, whose military has started targeting Russian oil refineries, said in a searing statement that the U.S. easing sanctions on Moscow âplays into Russiaâs hands.â
âAny easing of sanctions against Russia without a clear and lasting de-escalation agreement with Russia is an obvious weakness,â Zelenskyy said. âAllowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.â
âWe count on Americaâs fair support for our defense of life, for our defense of people in Ukraine â and on the United States having a correspondingly strong conversation with Russia,â he said.
âA strong one, not a weak one,â he added.
Trump thanked Putin later Friday afternoon for enabling âmassive amounts of oilâ to come to the U.S.
âWe need oil for the world, and this is diesel, which is what we need, so weâre very happy to get it,â Trump told reporters before heading to Syracuse, New York.
The Trump administration has previously eased some Russian energy sanctions temporarily, though more narrowly than Fridayâs announcement.
Earlier this year, in an attempt to stabilize markets after the start of the Iran war, the Trump administration issued limited, 30-day waivers allowing countries to buy sanctioned Russian oil that was already in transit.
But some interpreted the latest move as a more significant step.
âIt looks like Trump cut a deal with the devil,â Jeremy Siegel, professor emeritus of finance at the Wharton School of the University of Pennsylvania, told CNBCâs âClosing Bellâ Friday afternoon.
âItâs not a permanent solution at all. Itâs sort of a short-term Band Aid,â Siegel said. âAnd cutting back on or eliminating sanctions on Russia for the invasion in Ukraine, I think, is a very unfortunate consequence.â
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