Changes to the SAVE Administrative Forbearance

Interest Accrual and Timing of Account Updates

How much interest is accruing on my account?

Interest accrues (builds) daily on the unpaid principal balance. Calculate daily interest accrual using the following example:

Principal Balance
$25,000
x Interest Rate
6.8%
÷ Number of Days in a Year
365
= Daily Interest Accrual
$4.66

What is my interest rate?

MOHELA is working to update interest rates- once updated, you can view your interest rate and outstanding interest amounts in your Loan details. Until our systems are updated, visit your Dashboard on StudentAid.gov  this link will open in a new window to view your interest rate on each loan. Please keep in mind, during periods of forbearance, Auto Pay will not be in effect and you will not receive the 0.25% interest rate reduction.

When will I see interest accruing on my account?

We are updating our systems and are working to update interest rates. Once your interest rate is adjusted, interest accrual will be effective beginning Aug. 1, 2025. Monitor your Loan details on mohela.studentaid.gov.

Please keep in mind, during periods of forbearance, Auto Pay will not be in effect and you will not receive the 0.25% interest rate reduction.

When do I need to start making payments?

You won't have to make payments until the SAVE forbearance ends. You will be responsible to begin repaying the accrued interest and principal when the lawsuit is resolved. Log In at any time to make a payment; payments are automatically applied to outstanding interest first.

Leaving SAVE

How do I leave the SAVE administrative forbearance?

You can leave the SAVE administrative forbearance by switching to an eligible repayment plan. Visit Loan Simulator   this link will open in a new window and apply today!

Please Note:

  • Once your request is approved, the forbearance will be ended to allow time for billing to start on your new plan. You will be billed 21 days prior to your due date.

  • If you have at least 1 loan on SAVE and 1 loan on another IDR plan, loans will stay in the SAVE administrative forbearance unless you select a non-IDR plan.

IDR Processing

When will my IDR application be processed?

MOHELA has resumed processing IBR, PAYE, and ICR applications. Your account will stay on a forbearance until your application is processed.

If you submitted an Income-Driven Repayment (IDR) application prior to April 27th, 2025, and your application has not been processed yet, you can now reapply at StudentAid.gov   this link will open in a new window to use your IRS verified income and select an eligible plan which may expedite processing. Your previous application will be automatically canceled. If you applied on StudentAid.gov you can track your application status by logging into your StudentAid.gov account.

Please Note:

PSLF and IDR Forgiveness

I'm working towards PSLF and want my payments to start counting.

If you're working toward Public Service Loan Forgiveness, are enrolled in the SAVE Plan, and want to start making qualifying payments, you must apply to switch to an eligible IDR plan   this link will open in a new window. We encourage you to look at the specific terms of each plan to make the best choice for your individual situation. Different IDR plans may require different monthly payments and—in the case of the IBR Plan—borrowers who later leave them may face interest capitalization (where unpaid interest is added to the principal balance). However, payments made under these IDR plans will count toward forgiveness under IDR and PSLF.

IBR Loan Discharge

If you switch to the Income-Based Repayment (IBR) Plan, you'll be eligible to have any remaining balance on your loans discharged after 20 or 25 years, depending on when you took out your loans. Apply for IBR on StudentAid.gov   this link will open in a new window.