
ALT On Aug. 1, 2025, interest will begin accruing on federal student loans in the Saving on a Valuable Education (SAVE) Plan forbearance. Here's what you need to know.

ALT Q: How does the latest federal court injunction affect my loans? A: In July 2024, a federal court injunction blocked parts of the Saving on a Valuable Education (SAVE) Plan. As a result, your federal student loans were placed in forbearance with a 0% interest rate. Because interest has not accrued, your federal student loan balance (which Includes principal and Interest) has not grown during your forbearance. In February 2025, a second federal court injunction ended this 0% interest rate. To comply with this injunction. your loan(s) in the SAVE forbearance Will begin accruing interest Aug. 1, 2025.

ALT Q: How do I know if I am in the SAVE forbearance? A: If you have a loan or loans in the SAVE forbearance, the U.S. Department of Education emailed you (from [email protected]) with more information in July. You also can log in to your StudentAid.gov account or loan servicer's website to confirm your current repayment plan or check the status of your income-driven repayment (IDR) plan application(s). Applications for the SAVE Plan and any other IDR plan with the "lowest monthly payment" option selected are still on hold.

ALT Q: I'm in the SAVE forbearance. What steps do you recommend? A: 1) Use Loan Simulator to estimate monthly payments, determine your repayment plan eligibility, and learn which available plan best meets your repayment goals. Get a personalized estimate at: Student Aid.gov/loan-simulator 2) Enroll in a different income-driven repayment (IDR) plan. Apply online at: StudentAid.gov/idr If you have eligible loans, applying for a different IDR plan is quick and easy if you provide consent for us to obtain your federal tax information directly from the IRS.





