Student Loan Repayments: What You Need to Know
Student loan repayment plans continue to evolve, with ongoing legal, political, and administrative changes creating uncertainty for millions of borrowers. While some programs remain in place, others are on hold or have been 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.
SAVE Plan Has Ended
The Saving on a Valuable Education (SAVE) plan has officially ended. This Biden-era program provided an alternative Income-Driven Repayment plan for federal student loan borrowers.
NASW updated members on the SAVE plan when it was established in 2023. The plan helped individuals have more affordable student loan payments and to work towards forgiveness. The SAVE plan calculated payments based on income and family size. It allowed student loan debt to be forgiven after 10-25 years, depending on the amount of the loan balance. As of August 1, 2025, interest began accruing again for the nearly 8 million borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan, which has been paused since spring 2024 due to a federal court injunction. NASW continues to work to protect and preserve student loan debt relief programs such as the Public Service Loan Forgiveness program.
Borrowers will need to switch 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 at NASW.bysavi.com.
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and nonprofit organizations, the Public Service Loan Forgiveness (PSLF) program is not under direct threat of being repealed and continues to be the best path to full forgiveness. To qualify, borrowers must work full-time (or 30+ hours/week) for a PSLF-eligible employer, make 120 qualifying monthly payments under an eligible repayment plan, and ensure their employment is properly certified with the Department of Education.
While the core of PSLF remains intact, employer eligibility rules are set to change on July 1, 2026. Per an Executive Order issued in March 2025, the Department of Education may now disqualify employers if they are determined to have a “substantial illegal purpose”. Fortunately, there is no retroactive loss of PSLF credit. However, if an employer is disqualified, any future payments made while working for them would stop counting toward your 120 required payments. To date, no employers have been impacted by these rules.
In the meantime, to help borrowers protect the progress they’ve already made toward forgiveness, we strongly recommend that employees submit Employment Certification Forms (ECFs) for all current and past qualifying employers as soon as possible to lock in credit.
You can find the latest policy updates in the Savi Help Center (bysavi.zendesk.com) or join one of our all-user policy webinars (bysavi.eventbrite.com) to learn how these changes impact your specific situation.
Major Repayment Changes Under New Legislation
In 2025, 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.
The law phases out several current repayment plans—including SAVE, PAYE, and ICR. For new borrowers taking out loans on or after July 1, 2026, the newly created Repayment Assistance Program (RAP) will be the only income-driven repayment option available. However, existing borrowers will still have access to Income-Based Repayment (IBR) as a long-term option alongside RAP.
The legislation also introduces strict new borrowing caps that take effect on July 1, 2026. Graduate PLUS loans will be eliminated entirely. Stafford loans will now have lifetime caps of $100,000 for most graduate programs and $200,000 for law and medical programs. Additionally, new Parent PLUS loans will be capped at $20,000 annually and $65,000 per dependent over a lifetime. Furthermore, under the new RAP plan, access to economic hardship and unemployment deferments is eliminated, requiring borrowers to make a minimum $10 monthly payment even if unemployed.
With these changes taking effect on July 1, 2026, borrowers must begin adjusting their repayment strategies now. While existing borrowers in retiring plans like PAYE or ICR have until July 1, 2028 to switch to IBR or RAP, other groups face immediate deadlines. For example, Savi highly recommends that existing Parent PLUS borrowers apply to consolidate their loans by April 1, 2026, to ensure processing is completed before the July 1 cutoff to retain access to income-driven repayment and forgiveness.
Savi is actively monitoring these changes to support borrowers through the transition.
Growing Risk of Default and Collections
According to recent data, nearly nine million borrowers are currently in default — the largest figure to date. Moreover, one in four borrowers are behind on their payments, a portion that has tripled since 2020. With the number of borrowers in default projected to rise dramatically in the coming years, it is clear that the federal student loan repayment system is not receptive enough to borrowers, who overwhelmingly remain in need of affordable monthly payments.
The U.S. Department of Education is expected to restart wage garnishment of up to 15% of disposable income for borrowers in default. Once collections resume, options for borrowers narrow significantly.
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, borrowers should be especially proactive. Savi recommends using this crucial window of time before involuntary collections resume to assess opportunities for loan rehabilitation and repayment in order to avoid the threat of wage garnishment
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 Protect Borrowers, 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.