Student Loan Repayments: What You Need to Know

Student loan repayment plans continue to evolve in 2025, with ongoing legal, political, and administrative changes creating uncertainty for millions of borrowers. While some programs remain in place, others are on hold and at risk of being rolled back. Read on for a summary of what you need to know. You can also create a free account with Savi, NASW's student debt partner, to stay up to date with the latest information.

Student Loan Interest Resumed August 1 for Borrowers Enrolled in SAVE

As of August 1, interest began accruing again for the nearly 8 million borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan. Originally launched by the Biden administration in 2023, the SAVE plan has been paused since spring 2024 due to a federal court injunction.

While borrowers in the plan remain in temporary forbearance — meaning no payments are currently due — interest is now being added to their loan balances, which could significantly increase what they owe over time.

Though no immediate action is required, borrowers hoping to avoid further interest accumulation may consider switching to an active repayment plan, such as Income-Based Repayment (IBR). You can explore your repayment options and make changes directly through your Savi account.

Public Service Loan Forgiveness (PSLF) Remains Active, But Changes Are on the Table

For borrowers working in public service — including roles in government and nonprofit organizations — the Public Service Loan Forgiveness (PSLF) program continues to be a critical pathway to student loan forgiveness. To qualify, borrowers must work full-time for a qualifying employer, make 120 qualifying monthly payments under an eligible repayment plan (such as Income-Based Repayment or Pay As You Earn), and ensure their employment is properly certified with the Department of Education.

While no immediate changes to PSLF are in effect, the Department recently concluded a rulemaking session that included proposals to restrict forgiveness eligibility for borrowers employed by organizations deemed to have a “substantial illegal purpose.” These proposed changes are not yet finalized, but updates are expected later this fall.

In the meantime, to help borrowers protect the progress they’ve already made toward forgiveness, Savi is hosting PSLF-focused workshops throughout August. These sessions will provide hands-on support with submitting Employment Certification Forms (ECFs) and navigating any policy changes. Full details and registration are available here.

Major Repayment Changes Coming Under New Legislation

On July 4, President Trump signed into law the One Big Beautiful Bill (OBBB), a sweeping piece of legislation that marks the most significant overhaul of the federal student loan system in decades. Among the key changes, the law eliminates several current repayment plans — including PAYE, ICR, and SAVE — and replaces them with a new Repayment Assistance Program (RAP). It also introduces annual and lifetime borrowing caps for students, aiming to limit how much can be borrowed over time. In addition, the legislation ends access to certain types of deferment and forbearance, such as economic hardship and unemployment deferments, and places new limits on how often and how long borrowers can use discretionary forbearance.

These changes are scheduled to take effect no later than July 2026, giving borrowers time to review and adjust their repayment strategies. Savi will continue to closely monitor the rollout of this legislation and will provide borrowers with updates and guidance as more details become available.

Growing Risk of Default and Collections

With collections resuming on defaulted student loans, millions of borrowers are at risk of serious financial penalties. As of May 5, 2025, the U.S. Department of Education officially restarted collections on defaulted federal loans, ending the pandemic-era freeze that had been in place since March 2020. This includes the reactivation of the Treasury Offset Program, which allows the government to seize tax refunds, garnish wages, and withhold federal benefits — including disability payments — to collect on delinquent debt.

 According to recent data, nearly 2 million borrowers are expected to default this summer, with an additional 4 million already more than 90 days past due. To avoid collections, borrowers can take steps to return to good standing by entering a loan rehabilitation program or consolidating their loans— both of which restore eligibility for repayment plans and forgiveness programs. 

Amid growing uncertainty under the Trump administration, including potential changes to Public Service Loan Forgiveness (PSLF) and the structure of the Department of Education itself, borrowers should be especially proactive. Savi recommends using the new download and save feature to keep a secure record of your loan information and repayment history as federal policies continue to shift.

If You Need Help Navigating New Student Loan Repayment Programs

If you are concerned about your eligibility under these programs, or your ability to make your payment, you can explore personalized repayment options using the NASW Savi tool at NASW.bySavi.com. NASW partnered with Savi, a student loan technology company that provides resources and expertise to help members understand, manage, and repay student loan debt.

The free Savi Student Loan Tool analyzes your repayment options and forgiveness programs to help you find your best solution. By completing a free application, you can see the repayment plans you qualify for, and which are most affordable and explore your options for loan forgiveness. If you purchase an Essential account, Savi also provides individual one-on-one support at a steeply discounted rate for NASW members.

The goal is to take the stress out of managing your student loans. NASW member Gregory P. said, “With SAVI's help, I stopped worrying. I was being guided through the process by a knowledgeable team who would help me every step of the way. And every cent of the debt I had been carrying around for many years was forgiven. It is life-changing.”

After working with Savi, Gregory received almost $77,000 in loan forgiveness!  Another NASW member, Rodney W., says, “I genuinely feel more knowledgeable about my student loans and options; having SAVI available helps relieve some of the stress.”

Meanwhile, NASW Continues to Work for Policy Level Solutions 

While Savi and other student loan calculators provide practical help for individual borrowers, NASW continues to advocate for policy changes concerning student debt. NASW actively monitors opportunities to make progress, having achieved a significant victory in securing the Public Service Loan Forgiveness (PSLF) waiver. NASW participates in the PSLF coalition, maintains a close partnership with the Student Borrower Protection Center, and supports student loan debt relief through various avenues, including forgiveness, cancellation measures, employer-sponsored relief, and scholarships. Expanding PSLF eligibility to include social workers employed by nonprofits and for-profit organizations is a key objective. Through continuous monitoring, strategic partnerships, and active engagement, NASW remains committed to addressing student debt challenges and advocating for social workers' needs.

Learn how NASW advocates for and supports student debt relief efforts for social workers in all settings. 

And visit Savi to see how this service can help you navigate loan repayment and confirm whether you are eligible for student loan forgiveness.