Ghoti Ichthus
Genesis 18:32, 2 Chronicles 7:14, Acts 5:29
Department of Education Update on Saving on a Valuable Education (SAVE Plan) 01-15-2025
"Earlier this year, a federal court prevented the U.S. Department of Education (ED) from implementing parts of the Saving on a Valuable Education (SAVE) Plan and other income-driven repayment (IDR) plans. ED is currently prohibited from using the SAVE formula to calculate monthly payments and from forgiving loans after years of payments under the SAVE, Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) Plans.
Please check this page and StudentAid.gov/SAVEaction for additional information as developments occur.
Below is an update on what borrowers can expect in the coming months.
Student Loan Borrower Q&A
I am enrolled in the SAVE Plan. What does the court’s injunction mean for me?
You are in a general forbearance, unless you obtained a different status (for example, deferment), because your loan servicer is not currently able to bill you at an amount required by the court injunction. You will be in this forbearance until servicers are able to accurately calculate monthly payments, which the Office of Federal Student Aid expects servicers to be able to do no earlier than September 2025. This timeline will give borrowers the opportunity to make another choice for repayment, based on which of the updated options is best for them. See below for more information on repayment plans. Borrowers will be informed of any further change to this litigation-related forbearance.
Under this general forbearance,
- you do not have to make your monthly payments on your student loans,
- interest is not accruing, and
- time spent does not provide credit toward Public Service Loan Forgiveness (PSLF) or IDR.
Because SAVE Plan borrowers will be in a general forbearance until the fall of 2025, ED is directing loan servicers to change IDR plan anniversary recertification deadlines. The first recertification deadline for SAVE borrowers will be no earlier than Feb. 1, 2026. Recertification deadlines will occur on a rolling basis. Borrowers will receive information from their servicers on their specific recertification timeline. We encourage you to visit StudentAid.gov and provide consent for auto-recertification of your IDR plan if you are eligible. By doing so, we'll automatically recertify your IDR plan by its recertification deadline. This will ensure you remain enrolled in SAVE.
Borrowers, and employers on borrowers’ behalf, can make a payment during this forbearance. That payment will be applied to future bills due after this forbearance ends.
Borrowers who do not want to be in this forbearance can contact their servicer to change repayment plans. There may still be forbearance associated with changing to certain repayment plans. See below for more information.
Borrowers should be aware that forgiveness as a feature of any IDR plan created by the Department – specifically, the SAVE (formerly REPAYE), PAYE, and ICR repayment plans -- is currently enjoined. Borrowers can have their loans forgiven if they are enrolled in the IBR Plan. Payments on PAYE, SAVE, and ICR are counted toward IBR Plan forgiveness if the borrower enrolls in IBR."
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Department of Education Updates on Saving on a Valuable Education (SAVE Plan)
A Federal Court issued an injunction preventing the U.S. Department of Education from implementing parts of the Saving on a Valuable Education (SAVE) Plan and other IDR plans. Please check this page for additional information as developments occur.
