The Washington State Department of Financial Institutions (DFI) is issuing this alert to inform student loan borrowers of recent changes regarding the Savings on a Valuable Education (SAVE) Plan forbearance.
In June 2024, student loan borrowers enrolled in the SAVE Plan were placed in a zero percent interest forbearance due to pending litigation regarding the SAVE Plan. On or about July 9, 2025, the Department of Education (DOE) announced the end of the zero percent interest forbearance. Borrowers enrolled in the SAVE Plan will resume accruing interest on August 1, 2025. The DOE is directing borrowers enrolled in the SAVE Plan to enroll in a new repayment plan.
If you are currently in the SAVE Plan, you can compare the available repayment plans using Federal Student Aid’s Loan Simulator to determine which repayment plan best suits your needs. If you determine an Income-Driven Repayment (IDR) Plan is right for you, submit an IDR Application.
DFI is aware of reports that DOE and federal student loan servicers are currently working through a backlog of IDR applications. In its press release, DOE stated that borrowers switching from the SAVE Plan to an IDR plan can “expect quick and timely processing” of their application. DOE also stated that the processing time for the IDR application is faster when borrowers consent to allowing DOE to obtain their federal tax information directly from the Internal Revenue Service, as opposed to the borrower manually uploading their income information.
Additional Resources
The FSA and your student loan servicer have the most up to date information regarding your student loans. If you do not know who your student loan servicer is, you can find out by logging into your Federal Student Aid account at Log In Federal Student Aid or by calling the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
Below is a list of additional student loan resources that may be of assistance:
Student Loans - Information from DFI
Washington Student Achievement Council
Student Loans - (consumeradvocates.org)
Student loans - Consumer Financial Protection Bureau
If you have additional questions or need to file a complaint, please contact DFI’s Consumer Services Division at (360) 902-8703.