The Department of Education announced today that it will extend the administrative forbearance for the 8 million borrowers affected by ongoing litigation over the SAVE repayment plan through September 2026. During this period, no payments will be required and no interest will accrue on federal student loans enrolled in the SAVE plan.
The extension comes after a federal appeals court issued a preliminary injunction blocking key provisions of SAVE, which was designed to lower monthly payments for low- and middle-income borrowers. The administration said the extension is necessary to prevent financial hardship while the legal challenge works its way through the courts.
Borrowers currently enrolled in SAVE do not need to take any action to receive the extended forbearance. Those who were on other income-driven plans and switched to SAVE before the litigation began are also covered. Financial advisors recommend that affected borrowers continue setting aside money for eventual repayment while using this window to build emergency savings or pay down higher-interest debt.
