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US President Joe Biden speaks about student loan relief at Madison College in Madison, Wisconsin. Andrew Caballero-Reyn/Getty Images

With Biden's SAVE program, 7.6M Americans have had a long break from student loan payments. Now time is running out. Here's what to do

Jessica Wong
Dec 25, 2025
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After being paused for 7.6 million borrowers under President Biden’s SAVE plan (Saving on A Valuable Education), the Trump administration announced a settlement that will — if it gets approved in court — kill the program.

SAVE, which promised ultra-low payments and faster forgiveness, is now being called “illegal” by the White House, with critics arguing it unfairly shifted costs to taxpayers who never borrowed.

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For millions of Americans, that could mean student loan payments are back.

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Safety net disappearing

The total U.S. student loan debt is about $1.75 trillion, but student debt isn’t just numbers on a statement. It’s a real source of stress for a lot of people.

The average borrower owes about $39,000 (1). Over half of student loan borrowers say they don’t feel financially secure according to Pew (2), and about three-quarters worry if they can even repay their loans, a Harris poll says (3).

With grocery bills, housing, and health care already draining household budgets, the return of student loan payments could have a massive impact. Roughly 1 in 5 borrowers are already in delinquency or default, and restarting payments could push many deeper into financial stress (4).

The SAVE plan would have cost taxpayers $342 billion over a decade and was delayed by the courts multiple times. Many borrowers benefited from 0% interest forbearance, freezing both payments and interest for months, but that cushion could be gone. Full repayment is back on the table.

If the settlement is approved, the SAVE era will officially come to an end. No new SAVE enrollments will be allowed, and all pending applications will be denied. Current SAVE borrowers will be automatically moved into legally valid repayment plans.

The Department of Education will contact affected borrowers to give instructions and deadlines. Borrowers will have a limited window to choose a new repayment plan (5).

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Important steps for what’s next

Borrowers need to move fast to make a plan for the coming changes.

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Federal Student Aid (FSA) encourages borrowers to log in to StudentAid.gov to check your loan balance, review any forbearances, and explore repayment options. Use the FSA Loan Simulator to compare plans and see how much you’ll actually pay each month. And don’t forget to authorize IRS data access because it speeds up enrollment in income-driven repayment plans and keeps your payment calculations accurate (6).

Even without the SAVE plan, there are some strategies that could help reduce stress for borrowers:

  1. Income-driven repayment (IDR) plans
  • Payments are capped based on income and family size
  • Potential loan forgiveness after 20 to 25 years of qualifying payments
  • Automatic annual recertification if IRS consent is given (7)
  1. Temporary relief options
  • Deferment or forbearance available for financial hardship
  • Interest may still build up on unsubsidized loans (8)
  1. Aggressive payoff
  • Cut down on discretionary spending or pick up extra income
  • Apply extra payments to the principal to lower total interest over time
  1. Stay informed
  • Keep an eye on deadlines to make sure you don’t miss payments
  • Sign up for alerts from StudentAid.gov

A new Repayment Assistance Plan (RAP) is expected by July 2026, which would give another income-based option (5).

The end of SAVE doesn’t have to mean the end of the road for borrowers. With income-driven plans, short-term relief, and the upcoming RAP program, borrowers could see some support but the key is acting quickly. The faster you choose a plan and get set up, the sooner you can start paying down your debt.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Education Data (1); Pew (2); ACA International (3); Institute for College Access and Success (4); Department of Education (5); Federal Student Aid (6); Federal Student Aid (7); Federal Student Aid (8)

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Jessica Wong Freelance Writer

Freelance writer with an economic development and consulting background.

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