Student Borrowers Seek SAVE Forgiveness, REPAYE Revival Before July 1 Plan Switch
Updated
Updated · Forbes · Jun 25
Student Borrowers Seek SAVE Forgiveness, REPAYE Revival Before July 1 Plan Switch
3 articles · Updated · Forbes · Jun 25
Summary
Four student loan borrowers filed an amended lawsuit Tuesday seeking immediate forgiveness for eligible SAVE enrollees and an order keeping other borrowers in REPAYE instead of forcing them into new plans.
The complaint argues Congress allowed SAVE, REPAYE and other income-driven plans to phase out only by 2028, so the Education Department cannot use a March settlement to deny accrued discharge, buyback credit or REPAYE enrollment now.
The borrowers also asked for a preliminary injunction before the department starts notifying SAVE borrowers in early July that they have 90 days to choose another repayment plan or be moved to a Standard plan.
The Education Department is seeking dismissal, saying the D.C. court cannot override the Missouri court orders that ended SAVE and that both SAVE and REPAYE rules were effectively repealed in March.
Millions of borrowers remain on track to lose SAVE unless a court intervenes quickly, after two years of litigation that put enrolled loans into forbearance and stalled forgiveness progress.
Amid legal chaos over repayment plans, what is the most secure path for borrowers to now achieve loan forgiveness?
A court just blocked new graduate loan limits. How will this legal battle shape the future of financing advanced degrees?
Can the new RAP plan replace SAVE's affordability as millions face higher monthly payments?
Countdown to July 1, 2026: Navigating the End of SAVE, REPAYE, and Major Student Loan Changes
Overview
Starting July 1, 2026, millions of federal student loan borrowers will face major changes as the SAVE and REPAYE plans are discontinued under the new One Big Beautiful Bill Act. With the SAVE plan facing legal challenges and no final rule to enforce, borrowers must act quickly to avoid being automatically moved into more expensive repayment plans. Nearly 7.5 million SAVE borrowers need to choose new repayment options to prevent higher monthly payments and interruptions in their progress toward loan forgiveness. This deadline-driven reset makes it urgent for borrowers to review their choices and plan ahead to protect their financial future.