Student Loan Borrowers Face Uncertainty After SAVE Plan Blocked

A federal court injunction has paused the SAVE repayment plan, leaving millions of borrowers without access to affordable repayment options.

The SAVE plan, introduced by the Biden administration in 2023 to provide lower monthly payments and faster loan forgiveness, remains blocked by a federal court ruling.
The Department of Education has removed online applications for income-driven repayment (IDR) plans, citing compliance with the court's injunction, though paper applications are still available.
Borrowers enrolled in the SAVE plan, which currently has 8 million participants, will not have to make payments until at least December 2025, with no interest accruing during this period.
Critics, including borrower advocacy groups, argue that the Trump administration's decision to restrict IDR access goes beyond the court's ruling and will cause financial hardship for millions of families.
Republican lawmakers have proposed alternative measures, such as capping financial aid and limiting the education secretary's authority to implement new repayment plans, signaling a potential shift in federal student loan policies.