There’s been a barrage of sweeping executive orders from President Donald Trump’s administration since taking office on Jan. 21. If you’re enrolled in the Saving on a Valuable Education student loan repayment plan, you might be wondering what’s next for you.SAVE is an income-driven student loan repayment plan that was implemented during the Biden administration. It lowered monthly student loan payments for millions of borrowers and offered them additional paths to forgiveness. However, SAVE has been hung up in the courts for the latter half of 2024, leaving millions of borrowers unsure about the fate of their student loans.Before the previous administration left office, an email was sent to borrowers, detailing the current status of SAVE, the implications for forgiveness and what you can do now.”The Biden-Harris Administration has been vigorously defending the SAVE Plan in court to give borrowers more breathing room on their student loans,” the Office of Federal Student Aid wrote in the Jan. 15 email. However, experts don’t expect the Trump administration to defend this income-driven repayment plan. Instead, experts say borrowers should brace for the end of SAVE and other possible student loan changes.If you’re enrolled in SAVE, here’s what you need to know.Read more: Trump’s Funding Freeze Halted. What Financial Aid and Student Loan Recipients Should KnowWhy is SAVE on hold?In 2024, a federal court issued an injunction that prevents ED from using the SAVE plan and from canceling loans that have earned forgiveness under the SAVE, PAYE and ICR plans. During the injunction, loans on the SAVE plan, which first went live in 2023, are in interest-free forbearance.Here’s what ED said forbearance means for you:You don’t have to make monthly payments.Interest is not accruing.Months in forbearance do not count toward forgiveness under Public Service Loan Forgiveness (PSLF) or income-driven repayment plans.How long will SAVE stay on hold?Experts expected the forbearance for SAVE borrowers to last for at least six months into 2025. In one of the last emails from the Biden administration, SAVE borrowers were told payments could remain on hold until December 2025.However, the Trump administration could change all of this, said Mark Kantrowitz, a student loan and financial aid expert. Kantrowitz doesn’t expect the Trump administration to defend the SAVE plan in court, and if it repeals the SAVE plan, the forbearance period could end sooner.Will the Trump administration repeal SAVE?Experts agree that the new administration is likely to look for ways to repeal former President Biden’s Saving on a Valuable Education plan.How? Kantrowitz expects Republicans to put the student loan income-driven repayment and forgiveness plan on the chopping block as part of a legislative process called budget reconciliation. This process, which can be utilized once a year, only requires a 51-vote to pass in the Senate, as opposed to the usual 60-vote filibuster rule.Elaine Rubin
Ven. Gen 31st, 2025
