Millions of federal student loan borrowers that were in IBR (Income Based Repayment Plans) found themselves moved into the SAVE (Saving on a Valuable Education) program during 2023 & 2024 under the former administration. If you were in a Forgiveness Plan by being moved into a SAVE plan, your forgiveness has been placed on forbearance until the legal injunction has been lifted, which is expected to be Fall of 2025.
Christina Randell, President of My Education Solutions, a national student loan management firm, had this to say. “Consumers are confused with all the mixed messages from the previous administration. They are slow to move but that could be costing them lots of money now that there is a clear path towards Forgiveness with the Trump Administration.”
Many assume that the Trump administration will end the controversial SAVE plan altogether, so this is a good time to opt out of the SAVE program and enroll in a forgiveness IBR. “It’s a safe bet since the other plans are under review in the court system,” Randell said. Popular IBR plans include the PSLF (Public Student Loan Forgiveness Plan) and the 20-year IBR Forgiveness plan for those who work for a for-profit organization or are unemployed.
Since payments under SAVE are not being counted towards forgiveness, the recommendation of My Education Solutions is to opt out of SAVE and start making payments to get back into a student loan debt forgiveness program. They are finding that new clients may still have low monthly payments or even $0 pay based on their income, but now each month counts toward their Forgiveness program.
If you decide to stay with the SAVE plan you are not making payments, and not incurring interest, but in addition, you are not getting any closer to Forgiveness until this matter is resolved later in the year. “Checking into if an IBR is right for you could get you closer to real forgiveness now, even though you may not have a monthly fee based on your income. Always check your options so you can make the best decision,” Randell added.
Seeking Professional Guidance – My Education Solutions can help with next steps
Despite the confusion, borrowers can take proactive steps by reaching out to My Education Solutions, a student loan management firm that has helped hundreds of clients successfully reach forgiveness, to ensure they are on the right track with their student loans. Given the complexities of student loan repayment, it’s a good idea to seek professional advice from firms like My Education Solutions. The firms specializes in helping borrowers understand their options, enroll in the best repayment plan, and ensure their payments are properly counted toward forgiveness.
With ongoing changes in federal policy and unpredictable legal challenges, working with experts can provide peace of mind and help borrowers make informed financial decisions. Rather than navigating the confusion alone, professional assistance can ensure that borrowers stay on track and maximize the benefits available to them.
MES will help you with the following:
- Check Loan Status – We will verify your current repayment plan, loan balance, and progress toward forgiveness.
- Lower Your Monthly Payment – MES will find the right plan for you to lower your monthly payments.
- Stay on Top of Paperwork – Submitting annual income recertifications and required documents on time can prevent unexpected changes in monthly payments.
- Monitor Loan Servicer Communications – We will keep track of emails and statements from loan servicers to help clients catch errors and address issues early. This is clearly a huge issue and Mohela has already changed their timetable to April 2024 and they are playing “catch-up” due to all the changes.
- Stay Updated on Policy Changes – Since more adjustments to the SAVE Plan will roll out in July 2024, staying informed is crucial for making the best financial decisions.
If you are a borrower and you are feeling overwhelmed, now is the time to take control of your student loans. By staying informed, avoiding costly forbearance pitfalls, and seeking expert guidance, they can make confident choices about their financial future. Schedule a free consultation with one of our student loan management advisors.
