\n<\/p>\n
A person walks on campus at Muhlenberg College in Allentown, Pennsylvania, U.S. March 26, 2025.\u00a0<\/p>\n
Hannah Beier | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Former President Joe Biden rolled out the SAVE plan in the summer of 2023, describing it as \u201cthe most affordable student loan plan ever.\u201d<\/p>\n
But millions of borrowers who signed up for the plan were caught in limbo after GOP-led lawsuits led to a block on the plan <\/a>last year. The Biden administration put these borrowers in a forbearance while the legal challenges played out, and stopped interest from accruing on people\u2019s debts in the meantime. <\/p>\n Forbearances are a period during which federal student loan borrowers are excused from making payments.<\/p>\n<\/div>\n The Trump administration has called the SAVE plan illegal. In the announcement ending the pause, it said the Education Dept. \u201clacks the authority to put borrowers into a zero percent interest rate status.\u201d<\/p>\n The Biden administration \u201cinvented a zero percent \u2018litigation forbearance,\u2019 forcing taxpayers to foot the bill,\u201d the Education Dept. wrote.<\/p>\n Borrowers enrolled in the forbearance will not be charged interest retroactively, the department said.<\/p>\n<\/div>\n Because the SAVE plan is no longer available and its interest-free forbearance is ending, borrowers need to move quickly to find a new repayment plan, experts said.<\/p>\n Unfortunately, the options are limited.<\/p>\n Currently, there is only one income-driven repayment plan available to borrowers: the Income-Based Repayment plan<\/a>, said higher education expert Mark Kantrowitz. (Income-driven repayment plans cap borrowers\u2019 monthly bills at a share of their discretionary income, with the aim of making payments affordable.)<\/p>\n President Donald Trump\u2019s \u201cone big beautiful bill<\/a>\u201d establishes another IDR repayment plan, known as RAP, but that plan won\u2019t be operational until next year.<\/p>\n \u201cThe Department urges SAVE borrowers to consider enrolling in the Income-Based Repayment Plan authorized under the Higher Education Act until the Department can launch the Repayment Assistance Plan,\u201d the agency said in its release.<\/p>\n<\/div>\n<\/div>\n\nWhat should SAVE enrollees do now?<\/h2>\n
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