On Dec. 9, 2025, the U.S. Department of Education (ED) announced a proposed settlement agreement that would end the Saving on a Valuable Education (SAVE) Plan. The agreement must receive court approval before it can take effect. Borrowers enrolled in SAVE will remain in forbearance while ED provides additional guidance, which is expected in early 2026. Borrowers may apply to change to a different payment plan, but processing times may be extended.
ED is also carrying out changes required under the One Big Beautiful Bill Act (OBBBA), which was signed into law in July and made significant updates to federal student aid programs. Some provisions became effective immediately, while others will roll out next year and beyond. Further guidance on implementation of these changes is expected in 2026.