Student-loan borrowers and parents are facing spiking payments and fewer options for relief, a new report says

Student-loan borrowers are facing higher monthly bills under President Donald Trump's repayment overhaul, a new report says.

Kent NISHIMURA / AFP via Getty Images Student-loan borrowers and parents are facing payment surges, a new report said.

Borrowers could see an average annual increase of over $2,000 due to Trump's repayment changes.

The financial strain puts borrowers at greater risk of defaulting on their debt.

A big financial hit could be coming for student-loan borrowers , a new report says.

On Monday, the Center for American Progress, a left-leaning think tank, released a report showing how President Donald Trump's student-loan repayment overhaul will affect bills and relief for millions of borrowers.

The think tank shared the report exclusively with Business Insider.

The student-loan changes , signed into law in Trump's "big beautiful" spending legislation, took effect July 1 and included new income-driven repayment plans and borrowing caps.

Borrowers moving from the Biden-era SAVE plan to the new Repayment Assistance Plan, or RAP, could see their student-loan bills increase by $2,163 annually on average, the report said.

For example, the report said a typical borrower with a bachelor's degree with earnings of about $68,615 annually would see their monthly payments increase from $136 to $343.

That's a total increase of $2,482 annually, on average.

The findings are based on income data from the US Census Bureau's American Community Survey and the Survey of Income and Program Participation, adjusted for inflation using the consumer price index.

CAP then estimated how much typical borrowers with different educational circumstances would have to pay under SAVE and RAP based on those plans' rules.

The SAVE plan allowed for lower payments and a shorter timeline to debt relief.