In the wake of President Donald Trump‘s sweeping executive orders since taking office on January 21, one of the most pressing concerns for student loan borrowers is the fate of the Saving on a Valuable Education (SAVE) plan.
Originally introduced during the Biden administration, SAVE was designed as an income-driven repayment (IDR) plan that lowered monthly payments and created new paths for loan forgiveness.
However, legal battles in late 2024 placed the program in limbo, leaving millions of borrowers uncertain about their student debt.
Now, as the Trump administration takes control, experts believe that SAVE’s days are numbered-meaning borrowers should start preparing for significant student loan policy changes.
Why is the SAVE Plan on hold?
The legal troubles for SAVE began in 2024, when a federal court issued an injunction that prevented the U.S. Department of Education (ED) from implementing SAVE or canceling loans under existing IDR programs like SAVE, PAYE, and ICR.
During this legal blockade, the Biden administration placed loans under an interest-free forbearance, meaning that monthly payments were paused for borrowers enrolled in SAVE and no interest accrued on these loans.
Months in forbearance did not count toward forgiveness under Public Service Loan Forgiveness (PSLF) or income-driven repayment plans.
Before leaving office, the Biden administration reassured borrowers that payments could remain on hold until December 2025, giving them more time to prepare for changes.
However, experts now warn that the Trump administration could end the forbearance period much sooner-potentially bringing an abrupt return to loan payments, interest accrual, and fewer forgiveness options.
Will Trump repeal the SAVE Plan?
Most student loan policy experts agree that the new administration will seek to eliminate SAVE.
If SAVE is repealed, borrowers will need to switch to a different IDR plan.
Some expect that the government will give borrowers a 90-day window to choose a new repayment plan, though the timeline could be even shorter.