And options foralternative lower-payment plansare dwindling.
However, the Department of Educationrecently closed applications for all IDR plans.
“In such a scenario, the federal student loan program would likely be transferred to another agency.”
Most experts predict management of student loans will be reassigned to the Treasury Department.
Current borrowers should expect the same terms as when they originally accepted the loan.
Why was SAVE blocked?
The Biden administration launched SAVE with an executive order in August 2023.
It lowered monthly student loan payments and offered multiple paths to forgiveness.
What happens to my student loans if I’m enrolled in SAVE?
“While legal challenges unfold, your loan servicer should continue processing payments as usual.”
However, not all SAVE borrowers will be eligible to enroll, and payments will likely be higher.
It’s a smart idea to review alternative repayment options using thestudent loan simulatorfrom StudentAid.gov.
Eligible borrowers can make up payments that were skipped during forbearance.
