SAVE Ruling Imminent + Negotiated Rulemaking Begins Soon

It’s been a minute since we’ve updated you on what’s happening with IDR plans and PSLF, and recent headlines may have caused unnecessary alarm (particularly for married borrowers). Here’s a quick summary:

1️⃣ SAVE Plan Update
A court decision on the SAVE plan is expected as early as next month. Borrowers currently in SAVE’s administrative forbearance may be allowed to stay in forbearance through early 2026—but keep in mind: those months don’t count toward PSLF. Once the ruling is final and applications reopen, most PSLF-eligible borrowers should plan to move into IBR or PAYE (depending on eligibility) to keep progress going.

2️⃣ The Spouse Income Confusion (and Resolution)

You may also have seen headlines last week suggesting that all IDR plans would now require spousal income to be included—even when filing taxes separately. This caused major panic for borrowers  – and frankly, us too – but the Dept. of Ed quickly retracted this week, indicating their understanding that spousal income is not required under the IBR statute.

Lesson learned? Sometimes, don’t believe the hype. The rules (and the laws behind them) still matter—and they serve to protect you.

3️⃣ Coming Soon: A Rare Chance to Shape the Rules That Shape Your Repayment

On April 29th, the Department of Education begins their Negotiated Rulemaking process (aka “Neg Reg”) to revise key regulations affecting federal student loans. It’s a big deal—and a chance for you to have a say. While Neg Reg seeks to update regulations around all borrowing and Title IV eligibility, for those of you in repayment we’re most concerned with:

• How future IDR plans are structured
• The tax treatment and availability of IDR-based loan forgiveness after 20-25 years of repayment
• The potential narrowing of the definition of public service for PSLF

To this end, one of the key components of the Neg Reg process is the consideration of public comments, and here’s the site to offer yours. If the availability of PSLF has impacted career decisions for you or your staff, it’s important to voice your concerns.

We’ll continue to keep you updated, and if you’re in line for forgiveness, don’t sit this one out. You have more power than you think!

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.