Stuck in SAVE Forbearance? Here's Exactly What to Do

Last updated: December 2025 · 5 min read

If you were enrolled in the SAVE plan, you've been placed into an administrative forbearance that is actively costing you money. This guide explains what happened, why it matters, and the exact steps to escape this trap.

This Is Costing You Money Right Now

7.7 million borrowers are currently in SAVE Administrative Forbearance. As of August 1, 2025, interest is accruing on your loans—and these months do NOT count toward PSLF or IDR forgiveness. Every day you stay in this forbearance is a day of lost progress.

What Happened to the SAVE Plan?

The SAVE (Saving on a Valuable Education) plan was created in 2023 as a more generous income-driven repayment option. It offered lower payments and faster forgiveness than previous IDR plans.

Then came the lawsuits.

Multiple states challenged the SAVE plan in court, arguing the Biden administration exceeded its legal authority. In early 2025, federal courts issued injunctions that effectively shut down the program:

The Department of Education stopped accepting new SAVE enrollments
Existing SAVE borrowers were placed into "SAVE Administrative Forbearance"
The online IDR application was revised to remove SAVE as an option
The "One Big Beautiful Bill Act" (OBBBA), signed July 4, 2025, legislatively eliminates SAVE effective July 1, 2028

The SAVE plan is dead. It's not coming back.

Why the SAVE Forbearance Is a Trap

When you hear "forbearance," you might think you're getting a break. You're not. Here's what's actually happening:

The Three Problems with SAVE Forbearance

1. Interest is accruing. Since August 1, 2025, your loans are accumulating interest. A February 2025 court ruling ended the 0% interest protection. At average rates of 6-7%, a $50,000 balance grows by roughly $250-290 per month.

2. No forgiveness progress. These months do NOT count toward your 120 PSLF payments or your 20/25-year IDR forgiveness timeline. You're standing still while your balance grows.

3. You must take action. This isn't temporary. The forbearance won't automatically end and switch you to a working plan. You have to apply to move to a different IDR plan yourself.

How to Escape: Step-by-Step

The solution is straightforward: apply to switch to a different income-driven repayment plan that's still active. Your best options are IBR (Income-Based Repayment) or PAYE (Pay As You Earn).

Confirm You're in SAVE Forbearance

Log in to StudentAid.gov and check your loan status. If you see "SAVE Administrative Forbearance" or similar language, you're in the trap.

Go to the IDR Application

Visit studentaid.gov/idr to start a new IDR application. The application is free and takes about 10-15 minutes.

Select IBR or PAYE

IBR (Income-Based Repayment) is the safest choice—it's the one legacy plan that won't be eliminated in 2028. PAYE offers slightly lower payments for some borrowers but is scheduled for termination on July 1, 2028. Both plans qualify for PSLF.

Provide Income Documentation

The easiest option: consent to IRS data retrieval on the application. Otherwise, upload your most recent tax return or pay stubs.

Submit and Wait for Processing

Processing times vary, but you should receive confirmation within 2-4 weeks. Once approved, your payments will resume (or begin) under the new plan.

Apply Now—It's Free

Don't wait another day. Every month in SAVE forbearance is a month of interest with zero forgiveness progress.

Go to IDR Application

Which Plan Should You Choose?

For most borrowers escaping SAVE forbearance, IBR is the recommended choice. Here's why:

IBR (Income-Based Repayment)

Payments capped at 10-15% of discretionary income. Forgiveness after 20-25 years. Key advantage: IBR is the only legacy IDR plan that will survive the 2028 terminations. It's the stable long-term option.

PAYE (Pay As You Earn)

Payments capped at 10% of discretionary income. Forgiveness after 20 years. Caveat: PAYE is scheduled for legislative termination on July 1, 2028. If you're pursuing 20-year forgiveness and will reach it before 2028, PAYE may offer lower payments. Otherwise, stick with IBR.

Both plans qualify for PSLF, so if you're pursuing Public Service Loan Forgiveness, either option will work. The key is getting OUT of the SAVE forbearance and INTO a qualifying repayment plan as soon as possible.

Special Situation: Already Close to Forgiveness?

If you're within a few years of reaching 20/25-year IDR forgiveness or 120 PSLF payments, act even more urgently. Every month in SAVE forbearance extends your timeline by a month.

Contact your servicer directly to:

Confirm your current qualifying payment count
Get a projected forgiveness date
Expedite your switch to IBR or PAYE

Good News: Your Previous SAVE Payments Count

If you made qualifying payments while on the SAVE plan before it was enjoined, those payments still count toward PSLF and IDR forgiveness. You're not starting over—you're just resuming progress.

What If I Can't Afford Payments Right Now?

IBR and PAYE payments are based on your income. If your income is low enough, your payment could be $0—and $0 payments still count toward PSLF and IDR forgiveness. This is infinitely better than the SAVE forbearance, where $0 payments count toward nothing.

Apply for IBR or PAYE even if you think you can't afford to pay. You might be surprised by how low your calculated payment is.