Key trending news items on student loan forgiveness as of March 4, 2025:
- Court blocks SAVE plan and IDR access: The 8th Circuit Court of Appeals has affirmed a lower court’s ruling that the Saving on A Valuable Education (SAVE) plan is unconstitutional. This decision also blocks forgiveness under the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans.
- Applications for income-driven repayment plans suspended: The U.S. Department of Education has removed applications for all income-driven repayment (IDR) plans from its website in response to the court ruling.
- SAVE plan borrowers in limbo: Those enrolled in the SAVE plan have had their loans placed in administrative forbearance for the past eight months. The forbearance period was expected to end at the close of 2025, but it may end sooner.
- Limited repayment options: Currently, borrowers can only switch to Standard, Extended, or Graduated repayment plans, or refinance with a private lender. None of these options offer loan forgiveness.
- Recertification deadlines extended: The Education Department has instructed loan services to extend IDR recertification deadlines to no earlier than February 1, 2026.
- Public Service Loan Forgiveness (PSLF) impact: Borrowers working towards PSLF may face challenges in making qualifying payments due to the inability to switch to other IDR plans.
- For-profit college loan forgiveness: In May 2024, President Biden approved loan forgiveness for $6.1 billion in federal student debt owed by 317,000 former Art Institutes students.
Experts advise borrowers to stay informed, prepare for potential higher payments, and explore alternative repayment options while waiting for further developments
