Enrolled in SAVE? You Might Owe $200 More Each Month—Here’s Why

If you’re enrolled in the SAVE plan for student loan repayment, you probably signed up hoping for lower payments, peace of mind, and maybe even a path to forgiveness. But lately, things feel more uncertain than ever.

From court rulings to policy changes, there’s a lot happening behind the scenes that could affect how much you owe each month—and when you’ll need to start paying again.

Let’s break down what’s really going on, without the confusing jargon.

So, Is the SAVE Plan Still Around?

Yes, it’s technically still active—but right now, it’s in a strange pause.

SAVE was launched as one of the most generous income-driven repayment plans ever. It allowed many borrowers to pay little or even nothing each month, especially if they had low incomes. Even better, it wiped out any unpaid interest so balances wouldn’t grow.

But earlier this year, a federal court blocked parts of the SAVE program. And while existing borrowers remain enrolled, the program isn’t currently open to new applicants. Payments are temporarily paused under something called “administrative forbearance,” which means:

• You’re not making payments right now

• Your balance isn’t growing from interest

• But—these months don’t count toward loan forgiveness

So while it feels like a break, you’re not actually moving forward.

Will My Monthly Payments Go Up?

There’s a good chance they might—especially if SAVE doesn’t make a full return.

Congress is reviewing a proposal that would shift millions of SAVE borrowers into an older repayment plan called IBR (Income-Based Repayment). That plan isn’t as generous.

If that happens, payments could rise sharply for many people. Depending on your income and family size, your monthly bill might go up by $100 to $200 or more.

For example:

• A single person making $40,000 a year might see payments go from about $100 under SAVE to more than $200 on IBR.

• A family of four earning $70,000 could also see their monthly payments double.

What’s Causing All This Confusion?

It’s a combination of things:

• Several states are challenging SAVE in court, saying it’s too generous.

• The Education Department has a huge backlog—over 2 million repayment applications are waiting to be processed.

• Congress is considering legislation that could completely eliminate the SAVE plan.

On top of that, loan collections have officially resumed. If your loan is in default, the government can now take your tax refund, garnish your wages, or even pull money from Social Security checks.

What You Can Do Right Now

Even though a lot is up in the air, there are still a few smart steps you can take to stay in control:

1. Check Your Income Certification

Make sure your income is up to date. If you haven’t recertified in the last year, you could be removed from income-driven repayment and placed on a standard plan—which usually means much higher payments.

2. Explore Other Repayment Plans

SAVE may be on hold, but other IDR plans like IBR, PAYE, and ICR are still available. They’re not perfect, but they can help keep payments manageable and move you toward forgiveness.

Just be aware that switching plans could change your timeline for forgiveness or increase your payments, so talk to your loan servicer or use the loan simulator on StudentAid.gov first.

3. Stay Updated

The situation is changing fast. Keep checking your loan account and official updates. Avoid misinformation online—there are a lot of rumors out there.

4. Don’t Let Your Loan Go Into Default

If you’re already in default, take action now. You might be able to rehabilitate or consolidate your loan to avoid wage garnishment or losing your tax refund.

Right now, being on SAVE means you’re in a holding pattern—no payments due, but also no progress toward forgiveness. And if Congress decides to end SAVE, your payment could rise significantly once billing resumes, likely later in 2025.

This is frustrating, but you’re not powerless. Stay informed, review your options, and act early if you need to switch plans or recertify your income.

If all of this feels confusing or overwhelming, you’re not alone—and it’s okay to ask for help. Whether through your loan servicer, a nonprofit counselor, or trusted resources like StudentAid.gov, support is out there.