Tue Dec 16 05:40:00 UTC 2025: News Article:
Millions of Student Loan Borrowers Face Payment Hikes as SAVE Plan Ends
Millions of student loan borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan will soon see their monthly payments increase, potentially by hundreds of dollars, as the Department of Education prepares to shut down the plan following a lawsuit settlement.
According to Investopedia personal finance reporter Elizabeth Guevara, approximately 7.7 million borrowers will need to transition to new repayment plans, likely less generous than SAVE. For many, this will be the first time they’ve made payments in years, due to the COVID-19 pandemic payment pause and subsequent administrative forbearances.
The SAVE plan, introduced in October 2023, offered significantly reduced monthly payments, with many borrowers qualifying for $0 payments. A subsequent grace period, extended due to legal challenges to the plan, further delayed repayment requirements. However, this forbearance is now ending.
The Department of Education has yet to announce a specific date for the transition, but is urging borrowers to review their repayment options immediately. Under some income-driven repayment plans, payments could increase by $100 to $500 per month compared to what borrowers would have paid under SAVE.
The COVID-19 pandemic payment pause began in March 2020 and was combined with the introduction of SAVE.
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