Student Loan Complaint Backlog Grows As SAVE Borrowers Stay In Limbo

The week began with anticipation for the August 4 court status report in the lawsuit over the SAVE repayment plan. Borrowers hoping for clarity instead saw a short update from the parties indicating that discussions continue, with no agreed-upon timeline for next steps.

The SAVE plan, designed to lower monthly payments for millions of federal student loan borrowers, has been blocked by court order since 2024. Under the injunction, the Department of Education cannot resume payments under the plan, leaving roughly 7 to 8 million borrowers in administrative forbearance. Interest on these loans resumed August 1, but no payments are due.

Congress officially ended SAVE as part of the One Big Beautiful Bill Act, signed into law in July, which also created a new Repayment Assistance Plan (RAP) scheduled to begin July 1, 2026. Borrowers currently in SAVE are expected to move to an amended version of Income-Based Repayment (IBR) sometime between now and June 30, 2028, but the exact timing is still unknown.

The next court update is scheduled for October 3. Until then, borrowers remain in a holding pattern, relying on estimated timelines rather than official announcements.