What happened to the SAVE plan for student loans in 2026?

The SAVE income-driven repayment plan was blocked by federal courts and effectively dismantled after 2024 litigation, so borrowers who enrolled were placed in an interest-free forbearance while the courts and the Department of Education sorted out the rules. In 2026 the Department is transitioning affected borrowers onto legacy income-driven plans such as IBR, or the new plan structure created by the 2025 budget law. Because the details keep shifting, check your exact status on studentaid.gov rather than relying on old guidance, and confirm whether your forbearance months count toward forgiveness. If you were counting on SAVE's lower payment, model your budget under IBR instead so a payment restart doesn't blindside you.