Home → Consumer Credit Home Page → Consumer Resources → Student Loan Resources → Student Loan News → News Item
U.S. Department of Education Update on Latest SAVE Ruling
July 19, 2024
Yesterday, a federal court of appeals ruling enjoined the SAVE plan, blocking its implementation and future enrollments. The U.S. Secretary of Education issued a statement (Trusted Partner Link) this morning in response. Critically, it notes that "borrowers enrolled in the SAVE Plan will be placed in an interest-free forbearance while our Administration continues to vigorously defend the SAVE Plan in court. The Department will be providing regular updates to borrowers affected by these rulings in the coming days."
Beyond that statement, the Department of Education has confirmed it is taking the following immediate actions:
- Moved all SAVE borrowers into forbearance. This will accrue no interest, but will not bear credit for IDR/PSLF.
- Stopped the recalculation of billing statements on undergraduate loans (dropping from 10% to 5%).
- Pulled down the IDR and Consolidation Applications, and placed informational banners there and on StudentAid.gov.