Student Loan Forgiveness
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Forbes· 2026-03-23 07:00
The Education Department indicated this week that student loan forgiveness approvals may surge during the second half of March, providing some much-needed good news for borrowers.Here's why: https://t.co/lxBz3QMQ9w (📸: Julia Demaree Nikhinson via Associated Press) https://t.co/cerJbziD22 ...
SAVE Plan’s Future Still Uncertain for Millions, Despite Another Court Decision in Its Favor
Investopedia· 2026-03-06 01:00
Core Insights - The SAVE plan is facing uncertainty regarding its future, with potential for early termination by the Department of Education despite a recent court ruling in its favor [1] - Over 7.4 million federal student loan borrowers are currently enrolled in the SAVE repayment plan, which has been in administrative forbearance for over a year and a half [1] - The Department of Education has not announced its plans for the SAVE program following the district judge's decision, leading to speculation about the continuation of the plan [1] Group 1: Legal and Administrative Developments - A district judge reaffirmed that the Department of Education could resume payments and forgiveness under the SAVE plan, but it remains uncertain if this will happen [1] - A group of states has sued the Biden administration, arguing that it lacks the authority to implement the SAVE plan, and requested a pause on the plan while appealing the judge's decision [1] - The Department of Education under the Trump administration was generally unsupportive of the Biden-era repayment plan and began charging interest on loans in forbearance starting August 2025 [1] Group 2: Implications for Borrowers - The SAVE plan is set to end in July 2028, and borrowers will need to find alternative repayment options as the plan will sunset along with two other income-driven repayment plans [1] - The administrative forbearance has prevented borrowers from making progress toward loan forgiveness, which is typically available after 20 or 25 years of payments under income-driven repayment plans [1] - Experts suggest that the Department of Education is unlikely to resume payments or proceed with granting forgiveness under the SAVE plan, despite the court ruling [1]
These Borrowers Will Soon Qualify for Automatic Student Loan Forgiveness—Are You Eligible?
Investopedia· 2026-02-28 01:00
Core Insights - Approximately 160,000 borrowers are set to qualify for automatic student loan forgiveness due to attending schools involved in misconduct, with notifications expected by March 29, 2026 [1] - The Department of Education is expediting the processing of borrower defense applications following a settlement from the Sweet v. McMahon lawsuit, which alleged delays in processing [1] - The automatic forgiveness will significantly improve the financial situation of affected households, potentially increasing consumer spending [1] Eligibility for Automatic Forgiveness - Borrowers eligible for automatic forgiveness must have applied for loan discharge between June 23, 2022, and November 16, 2022, and attended one of over 150 identified schools [1] - About 80% of the total 200,000 applicants fall into this category and are entitled to "full settlement relief" [1] - Notifications regarding forgiveness will be sent via email, and any requests for payment related to the borrower defense claim should be considered scams [1] Impact of the Sweet v. McMahon Settlement - The settlement requires the Department of Education to make decisions on all borrower defense applications submitted before November 16, 2022, by January 28, 2026 [1] - Approximately 200,000 borrowers who applied during the specified period are awaiting decisions, with most expected to receive notifications soon [1] - The Department of Education's appeal for an extension to respond to these applicants was rejected, indicating a commitment to expedite the process [1] Additional Borrower Defense Options - Borrowers who applied for defense forgiveness outside the specified dates may still be eligible but will not receive automatic forgiveness [1] - About 20% of the 200,000 applicants did not attend the identified schools and are owed a decision by April 15, 2026 [1] - Those who applied before June 23, 2022, should have already received their forgiveness, and can contact the Department of Education if they have not [1]
