Overview
- The Education Department filed a proposed settlement that, if approved by a federal court, would halt new SAVE enrollments, deny pending applications, and move current participants into existing legal repayment plans.
- The agreement would vacate the 2023 SAVE Final Rule, with a limited exception allowing certain deferment and forbearance periods to count toward income-driven forgiveness.
- Borrowers will be given a short window to select a new plan, but specific deadlines and servicing timelines remain unclear as Federal Student Aid prepares outreach.
- Interest resumed on SAVE accounts on August 1, 2025 following court orders, causing balances to grow for many borrowers who stayed in forbearance.
- Trump officials and GOP states say ending SAVE prevents unlawful costs to taxpayers, while borrower advocates warn alternatives will likely mean higher monthly payments.