Department of Education Updates on SAVE Program

July 26, 2024

On July 18, 2024, a federal court issued a stay preventing the U.S. Department of Education from operating the Saving on a Valuable Education (SAVE) plan. Here's what it means for borrowers:

• Forbearance: Borrowers enrolled in the SAVE plan are being moved into forbearance. During forbearance, SAVE borrowers will not have to make payments. The time in forbearance will not count toward Public Service Loan Forgiveness or Income-Driven Repayment (IDR) loan forgiveness. SAVE borrowers will not accrue interest on their loans during the forbearance. SAVE borrowers will be notified about their forbearance by their loan servicers.
• Bills and payments: Borrowers enrolled in the SAVE Plan who have received a bill for August are being put in an interest-free forbearance - payments are not required during forbearance. Borrowers enrolled in the SAVE Plan who have not yet received a bill for August will also be put in forbearance and therefore will not receive a bill.

For more information on the SAVE Plan, please visit the U.S. Department of Education HERE (Trusted Partner Link).

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