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Important: SAVE Plan Injunction & Impact on Loan Forgiveness

Writer: Melissa MaguireMelissa Maguire

February 26, 2025 – We want to provide you with critical updates regarding recent developments affecting federal student loan repayment options.


On Monday, February, 24th, a federal judge upheld the injunction against the SAVE repayment plan. As a result, forgiveness under PAYE (Pay As You Earn) and ICR (Income-Contingent Repayment) is also on hold. Borrowers can still enroll in PAYE and ICR, but those who have reached their forgiveness terms will not receive forgiveness at this time.


What This Means for Borrowers:

  • If you are currently enrolled in SAVE, you may want to explore alternative repayment options, especially if you can afford a different plan.

  • The safest alternative for most borrowers is the Income-Based Repayment (IBR) plan. However, the repayment term may vary based on loan origination dates (either 20 or 25 years).

  • If you are unsure of your best option, Student Debt Solutions can help you evaluate your choices.


Department of Education Shuts Down Online Applications

The Department of Education has temporarily disabled online applications for loan consolidation and income-driven repayment plans. Borrowers who need to apply must now complete a paper application and submit it directly to their loan servicer. Processing times may be delayed due to backlog, so we encourage you to submit applications as soon as possible.


Student Debt Solutions is Here to Help

We understand that these developments can create uncertainty and confusion. That’s why Student Debt Solutions is committed to providing the support and resources you need during this time, including:


  • Personalized repayment guidance

  • Paper application assistance

  • Updates on policy changes and their impact


If you have any questions or need assistance, please contact our team at support@myresolvent.com. While logged on, you can also use the chat feature to reach us. Our trained staff are experts in student loan repayment options and are available to assist you in understanding how these changes may impact your specific situation.


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