On July 18, a federal court ruling put temporarily the SAVE Plan on hold. While the lawsuits are still pending and the Department of Education works to respond, borrowers who are enrolled in the SAVE plan will temporarily be placed in a forbearance. If you are placed in forbearance, you will not accrue interest and you will not be required to make payments.
In response to the decision, the Department of Education also temporarily removed the ability to enroll in an Income-Driven Repayment Plan through StudentAid.gov. However, manual and paper applications are still being accepted. You can submit to enroll or switch your Income-Driven Repayment Plan through your Savi account, just as you normally would. Once servicers are allowed to begin processing applications, your applications will be processed.
As on July 1st, 2024, the Department of Education is no longer accepting new enrollments in the PAYE or ICR* plans. You must be currently enrolled and recertify your income each year to remain enrolled in the plan. If you do not recertify on time, you will be placed in the Standard plan and you would no longer be eligible for the plan.
*Parent PLUS loans that are consolidated into a Direct Consolidation loan will continue to remain eligible for the ICR plan.
Savi will continue to monitor the situation and provide more updates here as they become available.