An (Overdue) Update on the Student Loan Marketplace

First off, not to sound trite, but Happy New Year. Since we haven’t reached out yet this month, I believe we’re still able to say this… but I digress.

We wanted to provide an update following the recent notice from ED (the Dept of Education) that the SAVE forbearance may extend to September, or beyond.

And oh yeah, because we have a new President now.

Thus far, Trump hasn’t taken aim at student loans, but we’re still playing the waiting game with SAVE… so let’s get into it:

Key Updates

SAVE Forbearance Extended

• Frankly, we were surprised to learn that SAVE participants will be in limbo through September. But… this message was delivered from the prior administration. As a result, we’re not sure this timeline is firm.
• It’s early, but Trump seems to be moving quickly with his agenda.

Another Recertification Extension

• ED has instructed loan servicers to push the date for income recertification for SAVE participants to NO EARLIER THAN Feb. 1, 2026.
• Why does this matter? Most borrowers haven’t submitted income details since 2019, which can mean significantly lower monthly payments for many.
• If you’re unsure how this benefits you, either your income is lower now than it was five years ago, or you need 1:1 support STAT.

Switching Plans

• ED made two previously closed IDR plans—PAYE and ICR—available last month, prompting questions about switching plans versus staying in a forbearance that doesn’t qualify for PSLF.
• Our stance? Stay the course. SAVE is far more generous than PAYE or ICR, as well as the plan it replaced: REPAYE.
• If SAVE is overturned (as expected), you may be automatically moved back into REPAYE, which would be easier for everyone.
• The exception? Borrowers filing Married Filing Separately to lower monthly payments. For them, we’ll explore tax strategies in our next email. If this is pressing, let us know.

Summary

Our guidance for those stuck in the SAVE forbearance remains to stay the course:

• No interest is accruing.
• The PSLF buyback option remains in place and is being expanded to borrowers who haven’t completed the full 10 years of Public Service—which applies to most of you reading this.

Action Items

• Having no payment doesn’t mean a greenlight for frivolous spending. We’re in uncharted legislative territory. While we’re confident, we can’t guarantee outcomes. Set aside monthly what you can for student loans during this uncertainty.
• Need help? Schedule time with us anytime [here]. The 25% discount still applies.
• BenElevate Clients: If your employer is a BenElevate client, get the link to bypass payment from them.

As always, ‘til debt do us part, and thank you for your continued trust.

About Author

Jason DiLorenzo

Jason is the Founder of BenElevate, an early stage fintech company working to address the student debt crisis by bringing to bear tools, expertise, and bespoke solutions to streamline student debt management for borrowers and employers.