Overview
- U.S. District Judge John Ross dismissed the main lawsuit and related injunctions against the SAVE income-driven repayment plan, creating a legal opening for its operation.
- The Education Department has not said whether it will lift the administrative forbearance or resume processing payments and forgiveness under SAVE.
- More than 7 million borrowers are enrolled in SAVE, yet months spent in forbearance have not counted toward income-driven forgiveness and interest has accrued since August.
- Recent legislation signed by President Donald Trump sets a firm July 1, 2028 phase-out for SAVE, limiting the program’s long-term prospects even after the court decision.
- Experts advise many borrowers to consider switching to Income-Based Repayment now, with a new Repayment Assistance Plan scheduled to become available on July 1, 2026, though servicer backlogs may slow transfers.