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
365.25
= Daily Interest Accrual
$4.65

What is my interest rate?

You can view your interest rate and outstanding interest amount in the Loan Details section of your online account. Until our systems are updated, you can find your interest rates in a few places:

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 will not have to make payments until the SAVE forbearance ends. You will be responsible to Log in 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 at least 21 days prior to your due date.

IDR Processing

When will my IDR application be processed?

MOHELA has resumed processing Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) applications. Your account will stay on a forbearance until your application is processed.

If you submitted an IDR application prior to Apr. 27, 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.

If your income or tax situation has changed since you submitted your IDR application which has not yet been processed, you may submit alternative documentation of income.

Please Note: Applications where "lowest monthly payment" was selected, more than one IDR plan was selected, or an IDR plan was not selected will be denied, per FSA. Visit Studentaid.gov/loan-simulator  this link will open in a new window to review your options and apply for an eligible repayment plan.

If you don't submit a new application for a different repayment plan within 60 days, you will be placed back into your previously enrolled repayment plan. If you were previously in the SAVE repayment plan, you will remain in a SAVE forbearance.

Public Service Loan Forgiveness (PSLF) and IDR Forgiveness

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

If you're working toward PSLF, 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 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.