IDR and Consolidation Applications Paused; SAVE Block Upheld

As you may have seen, a recent 8th Circuit Court ruling has extended the block on the Saving on a Valuable Education (SAVE) plan—currently affecting up to 8 million borrowers, including most of you, our valued readers.

This decision doesn’t send borrowers back into repayment yet; it merely confirms that SAVE will likely be eliminated once the legal process plays out. ⏳

In response, the (newly-led) Dept of Education shut down – without notice – the applications for ANY Income-Driven Repayment (IDR) plan, as well as consolidation applications.

Regarding this action… Rest assured, this is likely a brief break tied to the anticipated removal of SAVE as a repayment option. If Department resources no longer list SAVE as an option, the servicers can adjust more quickly.

The bigger question is: what options will remain? Our hope is that SAVE will simply revert back to what it was under the last Trump administration—REPAYE.

Most of you who are either already in SAVE, or were considering switching to it, should hold tight for the moment. Most of the 1:1 consulting we’re doing right now is related to income documentation: Specifically, tax filing strategies for those considering Married Filing Separately, or extending their filing because of higher income in 2024 than in years past.

We’re available to help you, no matter your profile. Schedule 1:1 support here, or if your employer is a BenElevate client, use the link provided by your HR.

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.