On July 18, 2024, the federal 8th Circuit Court of Appeals issued a stay preventing the Department of Education (ED) from operating the Saving on a Valuable Education (SAVE) Plan. The SAVE Plan is an income-driven repayment (IDR) plan that bases a borrower’s monthly student loan payment amount on their income and family size. Formerly, it was called the REPAYE Plan. ED is “assessing the ruling and will be in touch directly with borrowers about how this will affect them.”

Here are a few of the questions NSDFC has been fielding from borrowers.

I’m enrolled in the SAVE Plan and have already received a bill. Should I pay it?

Borrowers already enrolled in the SAVE Plan who have received a bill for August are being put into an interest-free forbearance, during which time payment is not required. Any payments made will be applied to future bills due after the forbearance ends.

I’m enrolled in the SAVE Plan, but I haven’t gotten a bill. What should I do?

Borrowers enrolled in the SAVE Plan who have not yet received a bill for August will also be put in forbearance and therefore will not receive a bill.

Are there other steps I need to take right now for the SAVE Plan?

Make sure your contact information is up to date on studentaid.gov and with your student loan servicer. This will help ensure you get any necessary updates. You can also check the ED’s SAVE Plan Court Actions: Impact on Borrowers page for updates.

A comparison of the two plans

Payment Terms

Forgiveness Time
  • Undergraduate loans: 5% of discretionary income
  • Graduate loans: 10% of discretionary income
  • Undergraduate + graduate loans: weighted average of both
  • Low-balance borrowers (<$12,000): 10 years
  • Undergraduate loans only: 20 years
  • Graduate loans: 25 years

Payment Terms

Forgiveness Time
  • 10% of discretionary income, up to the standard 10-year payment amount
  • 20 years