A legal filing filed Monday by the law firm Public Goods Practice is pressing the U.S. Department of Education for a concrete timeline regarding the transition of up to 5.5 million student loan borrowers off the Biden-era SAVE repayment plan.
The filing follows reports that some borrowers have already exceeded both their initial 90-day deadline and an additional 30-day extension without being transferred to alternative repayment plans. The Education Department has not provided a confirmed date for when these borrowers will be moved off SAVE or notified of their new payment terms.
Department acknowledges uncertainty
According to the legal filing, when asked by Public Goods Practice when borrowers whose 30-day extensions have expired would be transferred, the Education Department’s counsel stated that it does not know when these borrowers will be moved to new plans. The department has not responded to multiple requests for clarification from media outlets.
Background on SAVE and the transition
The SAVE plan, an income-driven repayment program launched under the Biden administration, linked borrowers’ monthly payments to their income and family size. It reduced payments for many borrowers and offered a faster path to loan forgiveness compared to earlier income-driven plans. Approximately 7.5 million borrowers were enrolled in SAVE when the Education Department announced transition plans earlier this year.
In July, the department began sending notices to SAVE enrollees, informing them of a 90-day window to select a new repayment option. Borrowers who did not transition within that period were told they would be placed on the standard repayment plan, which typically results in higher monthly payments. After the initial 90-day period expired for some borrowers, the department issued a 30-day extension, which has now passed for a subset of enrollees.
Ongoing legal and policy shifts
The transition off SAVE is part of a broader overhaul of federal student loan repayment systems under the Trump administration. Earlier this month, the Education Department reported that nearly 2 million borrowers had voluntarily chosen a new repayment plan. However, the department has not disclosed how many borrowers remain on SAVE.
The legal filing seeks to compel the department to provide specific details on the transition process, including timelines and next steps for borrowers who have not yet been moved to alternative plans. Borrowers and advocates have raised concerns about the lack of clarity, citing uncertainty over future payment amounts and eligibility for forgiveness programs.
The Education Department did not respond to a request for comment on the legal filing or the transition timeline.