Understanding the SAVE Plan for Student Loan Forgiveness

This month, there will be additional student loans that are canceled under President Biden’s SAVE Plan.

Updated on March 27, 2025.

KEY POINTS

• Watch your email for updates on a new set of student loan forgiveness.
• Make sure to apply for the Saving on a Valuable Education Plan, known as SAVE.
• If you were in the Revised Pay As You Earn (REPAYE) Plan, you are enrolled automatically in SAVE.
• Make sure to confirm that your student loan is eligible for cancellation.

What is Happening in February with Student Loans and the SAVE PLAN?

Why is February important if you have student loans? Because President Joe Biden announced a new group of federal student loan borrowers that qualify to have their loans canceled under a new repayment plan.

Under the new repayment plan of the Department of Education, student loan borrowers will qualify if they meet the following requirements:

• The student loan borrower is enrolled in the Saving on a Valuable Education Plan, known as SAVE.
• Less than $12,000 in federal student loans were borrowed;
• The student has been repaying those loans for 10 years..

In a statement, President Biden said, “this action will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans,” and “it’s part of our ongoing efforts to act as quickly as possible to give more borrowers breathing room so they can get out from under the burden of student loan debt, move on with their lives and pursue their dreams.”

Read more about student loans and the SAVE Plan

Navient Student Loans Transfer to MOHELA: What You Need to Know

Biden’s plans for student loan debt relief are in response to the U.S. Supreme Court ruling against the one-time cancellation of up to $10,000 for federal borrowers. The full text of the U.S. Supreme Court ruling can be found via this link.

Biden referenced the Supreme Court in his statement. “And, in the wake of the Supreme Court’s decision on our student debt relief plan, we are continuing to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible,” Biden said. “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”

What You Need to Know About the SAVE Plan

The SAVE Plan replaced the Revised Pay As You Earn (REPAYE) Plan. If you were in the REPAYE Plan, you will be automatically enrolled in the SAVE program. The SAVE Plan is the latest income-driven repayment (IDR) plan, which focuses on your income and family size to determine your monthly payment amount.

Is Your Student Loan Eligible

If you have the following loans, then you are eligible for the SAVE Plan:

• Direct subsidized and unsubsidized Loans;
• Direct PLUS Loans made to graduate or professional students;
• Direct Consolidation Loans that did not repay any PLUS loans made to parents.

If your loan was consolidated into a Direct Consolidation Loan, it’s also eligible under SAVE. This includes:

• Subsidized and unsubsidized Federal Stafford Loans (from the FFEL Program);
• FFEL PLUS Loans made to graduate or professional students;
• FFEL Consolidation Loans;
• Federal Perkins Loans;

Loans that are not eligible are:

• Direct PLUS Loans made to parents;
• Direct Consolidation Loans that repaid PLUS loans made to parents;
• FFEL Program Loans (some types can become eligible if consolidated);
• Federal Perkins Loans (can become eligible if consolidated);
• Any loan that is currently in default.

How Much Will Your Monthly Payment Be Under the SAVE Plan

The good news with the SAVE PLAN is that payments can be as low as $0 per month. Per President Biden’s statement, “6.9 million borrowers are enrolled in the plan, and 3.9 million have a $0 monthly payment.”

But, even without a zero monthly payment, there could still be a substantial decrease in your monthly payment since payments are based on discretionary income, and it increases the income exemption up to 225% of the poverty line when before it was 150%.

Where Do You Apply for the Biden SAVE Plan

To enroll for the SAVE Plan on the Federal Student Aid website, try this link. If you are not sure who your loan servicer or servicers are, you can confirm that on your “My Aid” page.

To read the full press release from the White House, click here.

Did you have your student loans canceled? Then, feel free to reach out to me and tell me your story.

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Please note the information provided on this website is not considered legal advice and should only be used for informational purposes. Please make sure to always contact a local attorney for specific advice regarding your case.