Overview
- A Monday Eighth Circuit directive followed by a Missouri district court ruling vacated the SAVE rule, officially terminating the program this week.
- The Education Department says borrowers enrolled in SAVE will no longer receive its benefits and will get instructions in the coming weeks on moving to legal plans.
- More than seven million borrowers have been in administrative forbearance under SAVE with interest accruing since August 2025, and many could see monthly costs jump by hundreds of dollars.
- Servicers are expected to shift borrowers into older income-driven or standard plans, but experts warn of communication lags, a 700,000-application backlog, and heightened delinquency and default risks.
- Months in SAVE forbearance generally will not count toward income-driven forgiveness, though some borrowers may use the PSLF buyback option, with a new Repayment Assistance Program slated to begin July 2026.