Summary
A major change related to student loan repayments is expected soon for borrowers on the SAVE plan. Legal challenges have delayed the plan, and borrowers may need to prepare for increased monthly payments and longer repayment periods. Key decisions affecting these borrowers are likely to be announced shortly.
Key Facts
- The SAVE plan offers affordable repayment options and potential loan forgiveness within 20 years.
- Legal challenges have paused the program, placing 8 million borrowers in forbearance for 15 months.
- During forbearance, borrowers' payments are not required, but time does not count toward loan forgiveness.
- President Trump's legislation plans to phase out the SAVE plan by July 1, 2028.
- Interest on loans began accruing again on August 1.
- Legal negotiations are ongoing, with a status report expected by December 15, 2025.
- If SAVE ends, borrowers might have to use older plans that could result in higher payments and longer repayment periods.
