The U.S. Department of Education has recently faced a legal injunction that affects the implementation of the Saving on a Valuable Education (SAVE) Plan and other income-driven repayment (IDR) plans. As a result, borrowers enrolled in the SAVE Plan are currently in a general forbearance until accurate monthly payments can be calculated by loan servicers, expected no earlier than September 2025. This timeline allows borrowers to explore alternative repayment options that best suit their needs.
During this forbearance period, borrowers have the option to make payments, which will be applied to future bills once the forbearance ends. Additionally, borrowers can contact their servicer to change repayment plans if they prefer not to be in forbearance. However, certain repayment plans may still require forbearance during the transition.
It’s important to note that forgiveness under IDR plans, including the SAVE, Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) Plans, is currently prohibited due to the injunction. Borrowers can still have their loans forgiven if they enroll in the Income-Based Repayment (IBR) Plan, where payments made under other IDR plans count towards forgiveness.
As updates continue to unfold, borrowers are encouraged to stay informed about recertification deadlines, repayment plan changes, and the ongoing litigation affecting student loan repayment options. It is crucial for borrowers to review their IDR plan options and make informed decisions based on their individual circumstances.
Attribution:
This article was summarized and republished from the original source.
Please check the original article here: https://www.ed.gov/higher-education/manage-your-loans/save-plan.