August 9, 2024 – A recent Federal court decision that affects your student loan repayment options, specifically the Saving on a Valuable Education (SAVE) repayment plan.
On July 18th, a Federal court decision prevents the Department of Education from offering the SAVE repayment plan. The benefits of this plan have now been placed on hold. If you are currently enrolled in the SAVE plan, you will be placed in forbearance.
Impact of Forbearance:
During the forbearance period, no interest will accrue on your loan balance. This means your outstanding balance will not increase due to interest charges.
However, time spent in forbearance will not count towards Public Service Loan Forgiveness (PSLF). If you are working towards PSLF, this period will not contribute to your qualifying repayment time.
Options for Borrowers:
If you wish to switch from the SAVE plan to another repayment plan, you will need to file a paper application. Due to the court decision, StudentAid has paused the submission of these applications through their website. Therefore, you must contact your loan servicer directly to request the change.
Please be aware that processing times may be delayed due to the high volume of requests.
Next Steps: Explore Other Repayment Options
Our system has been updated with the latest rules and guidance. We encourage you to log in to Student Debt Solutions (SDS) to explore other repayment plans that may be available to you.
Student Debt Solutions is Here to Help
We understand that these developments can create uncertainty and confusion for borrowers. Student loan servicers may be feeling burdened and confused due to these legal challenges. That’s why Student Debt Solutions is committed to providing the support and resources you need during this time.
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.