Education Department directs student loan borrowers in SAVE plan to prepare for repayment
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The US Education Department is directing over 7 million student loan borrowers in the SAVE plan to prepare for repayment after a federal court struck down the plan. Borrowers will receive notices starting Friday with instructions to select a new repayment plan within 90 days, with loan servicers beginning to issue notices on July 1.
The US Education Department is notifying over 7 million student loan borrowers in the SAVE plan to prepare for repayment. The SAVE plan was struck down by a federal court earlier this month. Borrowers have been in forbearance since July 2024. Starting July 1, loan servicers will issue notices giving borrowers 90 days to select a new repayment plan. The notices will be sent in stages, with the first group being those who enrolled in the SAVE plan the longest. Borrowers will be required to resume making payments as soon as this summer.
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