8 Million Borrowers Remain Stuck in SAVE

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Income-driven repayment plans are meant to help you stay active in federal student loan repayment, even when your wages aren’t as high as you’d like. The Saving on A Valuable Education (SAVE) Plan, however, has completely sidelined borrowers.

In fact, the 7.8 million federal loan-holders enrolled in SAVE have been on an interest-free repayment pause for nearly a year. Owing a combined $440 billion, according to mid-2025 data from the Department of Education, they’re no doubt waiting for a hammer to drop.

That’s because the Trump Administration’s Department of Education is happy to go along with widespread efforts to replace SAVE — it also isn’t accepting new SAVE applicants.

As Betsy Mayotte, the founder of The Institute of Student Loan Advisors nonprofit, said at a higher education finance symposium last month, “We know that SAVE is dead — we just don’t know who’s burying the body, if it’s going to be the courts or Congress.”

SAVE seems unsalvageable: How did we get here?

What comes next? Mark Kantrowitz, the nation’s leading student loans expert, estimated in April that borrowers would have at least “a month or two” more on SAVE. The Education Department’s latest advisory, published in mid-January, offers this timeline:

Given the moving targets and mass confusion — Reddit users have reported receiving automated but incorrect return-to-payment emails, for example — don’t be surprised if you and your peers nationwide are stuck in SAVE until 2026.

What to do if you’re stuck in SAVE

Be skeptical of what your federal loan servicer tells you, and don’t hold your breath waiting for Congress. Yes, that’s a tough place to be, but that’s where we find ourselves.

The more nuanced answer is that your best next step depends on your repayment goals.

If you’re pursuing federal loan forgiveness…

Your nonpayments under SAVE aren’t counting toward IDR-related relief (awarded after 20 or 25 years of payments) or Public Service Loan Forgiveness (10 years). So, if you’re close to qualifying for either type of loan cancellation, it could behoove you to switch to the one existing IDR plan that’s still awarding forgiveness, Income-Based Repayment.

Just keep in mind that…

• While the Education Department is far behind in processing IDR applications, you could be awarded an interest-free “processing forbearance” while it awaits approval.
• Congress’ budget reconciliation bill is proposing a new single IDR option (for new borrowers), though how it takes shape over the summer is anyone’s guess. (Lawmakers have set a July 4 deadline for their bill to become reality, according to reports.)

If you aren’t close to achieving federal loan forgiveness, and don’t mind purgatory…

Then stay where you are — but prepare for that hammer’s swing.

Imagine, for instance, your monthly payments doubling on a different repayment plan once SAVE is gone for good. Mayotte has speculated that SAVE borrowers could be returned to REPAYE.

What we do know is that the Education Department would have to transition SAVE borrowers to an alternative plan, potentially the Repayment Assistance Plan (RAP) in conservative lawmakers’ budget reconciliation bill.

But it might be wise to put your blinders on, and focus on what you can control. Some of the SAVE borrowers Bankrate interviewed this spring said they were using this elongated repayment pause to…

• Earn interest on would-be monthly dues via a high-yield savings account
• Pay off other, perhaps higher-interest debt
• Make voluntary payments to whittle away at loan interest

What’s your next step?

Other strategies to consider include optimizing your budget and utilizing the Department of Education’s Loan Simulator to determine whether you should apply for an alternative IDR plan.

Keeping communication lines open with your federal loan servicer is also critical. That way, you can stay apprised of changes to your repayment options.

Whatever you do, don’t stand idly by, particularly if your financial situation is in bad shape. Take it from a certified student loan counselor: Steps like those above can help you avoid joining the growing crowd of student loan borrowers in default.