SAVE Plan 0% Interest Ends August 1 — What Borrowers Must Do Now
The countdown is on: the 0% interest benefit under the SAVE plan ends August 1, 2025. If you’re one of the millions of borrowers taking advantage of this temporary relief, now is the time to reassess your repayment strategy — or risk higher interest charges and missed opportunities for forgiveness.
Whether you're a public servant aiming for PSLF or a borrower confused about what happens next, we break down your options so you can act with confidence — not confusion.
The SAVE plan’s 0% interest provision was a temporary forbearance tool, but it’s ending. That means:
If your loan balance is small and manageable, and you’re not pursuing forgiveness, paying off your balance before interest resumes could save you money.
If you’re not going for forgiveness and have good credit/income, refinancing to a lower interest rate might be your smartest move. Check our refinance partner, CampusDoor here.
If you work for a government or nonprofit employer — or even a contractor serving one — you may qualify for Public Service Loan Forgiveness (PSLF). But don’t count on the system to auto-enroll you. You must:
Plan Options Based on Loan Origination:
Eventually, everyone in PAYE will be moved into the new IBR by July 2026 — but acting now could keep your payments lower in the short term.
You still have choices. If you’ve been paying for years but are not PSLF-eligible:
Federal systems to “auto-enroll” borrowers based on IRS or employer data aren't ready — and won’t be reliable for years. If you do nothing, you might be assigned a plan that doesn’t align with your goals.
Take action now. Don’t risk credit hits or unexpected interest accrual.
Need help figuring it out? Schedule a free consult with LoanSense.