According to the Student Debt Crisis Center: Many of you have been reaching out to our team about being proactive when it comes to your student loans in 2025. We have been working closely with folks at the Department of Education to bring you the latest updates so that you are prepared and in the best place you can be. While we understand that many of you have a bittersweet relationship with the Department of Education, without them, we would not have updates to share or be able to escalate individual cases; ultimately, we would be in the dark.
Finally, here is what’s going on and what you need to know:
SAVE Plan Updates
1. We anticipate the SAVE plan will go away due to ongoing litigation. Folks can choose to stay enrolled in the plan if that is their preference until we figure out the fate of the SAVE plan.
2. A reminder: anyone enrolled in SAVE is currently in the SAVE forbearance where interest is not accruing and folks are NOT receiving PSLF or IDR credits for the time spent in this forbearance
If you want to get out of SAVE, switch to another IDR plan, or enroll in an IDR plan for the first time, here’s what you need to consider:
IBR, ICR, and PAYE
1. Use the Loan Simulator to figure out which repayment plan is the best option for you
– You can access it here: https://studentaid.gov/loan-simulator/
– Our recommendation: if the loan simulator is confusing or you’re having a hard time with it, give your loan servicer a call and ask them what your payment would look like on each plan (ICR, IBR, and PAYE).
–IBR & PAYE are not available to everyone, you will need to show financial hardship to qualify; however it’s still worth asking about or looking into your eligibility for these plans.
— **IBR may be the most secure plan since it is written into law.
— ICR is the only repayment plan available for consolidated Parent Plus Loans You can learn more about each plan here: https://studentaid.gov/manage-loans/repayment/plans/income-driven
What happens after I apply for an IDR plan?
1. Once you select a plan and apply to enroll, your loan servicer should place you into a 60-day processing forbearance. During this time, you will accrue PSLF & IDR credits as well as interest.
2. We have been told that servicers are starting to process applications again. If they don’t complete your processing in 60 days, they are supposed to place you into an administrative forbearance until they place you into the plan you applied for.
What will happen under the incoming administration?
The answer is we don’t know. We will continue to provide updates via email, host webinars, and do what we can to ensure that you all are informed on what happens regarding all things student debt.
How can I get involved? What action can I take?
If you haven’t already, please sign this petition urging members of Congress to defend the Department of Education (ED).
Feel free to share this email and information with your loved ones and anyone with a student loan!
Disclaimer: We are not attorneys or policy experts; we are financial counselors who are here to help.