Having trouble viewing this email? View it as a Web page.

SAVE Repayment Plan Officially Eliminated

A Federal appeals court ordered the official end to the Saving on a Valuable Education (SAVE) repayment plan after years of uncertainty. SAVE borrowers have been in administrative forbearance since summer 2024. During this forbearance, interest is accruing (since August 2025) and the time does not count toward student loan forgiveness. Within the last week, the U.S. Department of Education (ED) began notifying borrowers enrolled in the SAVE repayment plan to select a new repayment plan.

• Starting July 1, federal loan servicers will send out notifications instructing borrowers to select a different repayment plan within 90 days of the notice.
• If a new plan is not selected within the 90-day deadline, borrowers will automatically be enrolled into either the current Standard Repayment Plan (10-year plan) or the new tiered Standard Repayment Plan (10-25 year plan) available July 1.

Next Steps for SAVE Borrowers

1. Review all communications sent from ED and/or federal loan servicers.
2. Use ED’s Loan Simulator Tool to compare the different repayment plan options.
3. Select a new repayment plan before the deadline (within 90 days after the notification from the federal loan servicer).
4. If an Income-Driven Repayment (IDR) Plan is the best option, complete the IDR application online.
5. Consider if ED’s Public Service Loan Forgiveness (PSLF) Buyback opportunity is an option to have the time in forbearance count toward PSLF.
6. Monitor ED’s IDR Plan Court Actions: Impact on Borrowers webpage for updates.

Student Loan Default

Are Your Loans Nearing Default?

Loans enter a delinquency status the first day after a missed payment. Below are three tips to help prevent entering loan default:

1. Check your loan status. Borrowers may be at risk for future wage garnishment if the loans have been moved to ED's collection agency, the Default Resolution Group. Log into your online account at your loan servicer’s website to check the loan balance is listed and active. If you are unsure who your loan servicer is, you can look it up by logging into studentaid.gov, navigating to your “Dashboard” and then the “My Loan Servicers” section.
2. Explore different repayment options. You may be eligible for a more affordable payment plan based on your income. You can apply for an income-driven repayment plan online.
3. Apply for a deferment or forbearance. Both options would put a temporary pause to repayment for a period of time. You can apply online through your loan servicer.

Are Your Loans in Default?

Loans enter default after 270 days have passed without making a loan payment. There are three ways to get out of default:

1. Pay the loan in full. Contact the Default Resolution Group or visit myeddebt.ed.gov to confirm the amount owed.
2. Rehabilitate the loan. Loan rehabilitation involves making nine consecutive, on-time payments based on income. This option takes longer to get out of default but can save on overall collection costs.
3. Consolidate the loans. Consolidation combines multiple loans into one loan with new loan terms. Once the consolidation is complete, the borrower is eligible for lower monthly payments and the loan status is restored to good standing. Borrowers can apply for loan consolidation online.

More information on getting out of default and comparing your options is available at studentaid.gov.

Register for a Student Loan Webinar!

Interested in learning more about borrowing student loans and student loan repayment? Sign up for a free webinar!