Overview
- Under a proposed deal with Missouri, the department would stop new SAVE enrollments, deny pending applications, and move current enrollees into other repayment plans with a limited window to choose.
- The filing asks the court to vacate the July 2023 SAVE Final Rule, with a narrow exception allowing certain deferment and forbearance periods to count toward income‑driven forgiveness.
- More than 7.6 million borrowers tied to SAVE have been in litigation‑related forbearance, which began accruing interest again on August 1, 2025 and generally has not counted toward PSLF or IDR.
- If approved, servicers will direct borrowers to IBR, ICR, or PAYE for now, options that are typically more expensive than SAVE and can lengthen the path to forgiveness.
- The administration plans a Repayment Assistance Plan next summer and is expanding IBR eligibility, though reporting indicates many affected borrowers would still face higher monthly payments.