What You Need to Know About Recent Changes to Student Loan Policy

What the current policy changes mean for your loans

As of early 2025, the federal government has paused or reversed several student loan relief programs that were previously in place. The most significant change is a halt to the Public Service Loan Forgiveness (PSLF) limited waiver that had allowed borrowers to count past payments toward forgiveness, even if those payments were made under the wrong repayment plan or while in deferment. That waiver period has ended. Additionally, the administration has paused the SAVE repayment plan's zero-dollar payment provision, which had allowed borrowers earning below a certain threshold to make no monthly payment while still making progress toward forgiveness.

These changes do not automatically cancel your loans or remove you from repayment. If you were enrolled in SAVE with a zero-dollar payment, your account will move to a standard repayment schedule. If you were counting payments toward PSLF under the waiver, those counted payments remain on your record, but you can no longer submit past payments for reconsideration under that program.

Key Takeaways

• The PSLF limited waiver that allowed retroactive payment counting ended, so you can no longer submit old payments for reconsideration under that program.
• The SAVE plan's zero-dollar payment option has been paused, meaning borrowers who may have access to for $0 monthly payments will be moved to standard repayment terms.
• Loans already forgiven under these programs remain forgiven; the changes affect only new submissions and future borrowers.
• Your loan servicer will notify you of changes to your account, but you should verify your repayment plan and contact information to may support you receive notices.

How the PSLF waiver ending affects you

The PSLF limited waiver, which ran from October 2021 through October 2023, allowed borrowers in public service jobs to count payments made under any repayment plan toward the 120 payments needed for forgiveness. Normally, only payments made under an income-driven repayment plan count. The waiver also counted payments made while your loan was in deferment or forbearance.

If you already received forgiveness under this waiver, nothing changes for you. If you submitted your process before the waiver ended and received approval, your forgiveness stands. However, if you did not submit your process during the waiver period, you cannot go back and count those old payments now. You can still pursue PSLF through the standard process: make 120 may have access to payments under an income-driven plan while working full-time for a government agency or nonprofit organization.

What happens if you were on the SAVE plan with zero payments

The SAVE (Saving on a Valuable Education) repayment plan included a provision that allowed borrowers earning below 225% of the federal poverty line to make a $0 monthly payment. This meant your loan balance would not grow through unpaid interest, and you would still make progress toward the 20-year forgiveness important date for undergraduate loans or 25 years for graduate loans.

With the zero-dollar payment provision paused, borrowers who were on SAVE with $0 payments will be moved to a standard 10-year repayment plan unless they take action. Your loan servicer will send you a notice explaining the change and your new payment amount. You have the option to switch to a different income-driven repayment plan if your income qualifies you for lower payments. Contact your servicer to explore other plans like PAYE, IBR, or ICR.

How to find out what plan you are currently on

Log into your account at studentaid.gov using your FSA ID. Under "My Loans," you will see each loan listed with its current status, servicer, and repayment plan. The repayment plan name appears next to each loan. If you see "SAVE" listed, check the payment amount shown — if it says $0, you will be affected by the pause and should expect a notice from your servicer within the next billing cycle.

If you are unsure which servicer handles your loans, studentaid.gov will show that information as well. You can also call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) to confirm your current plan and payment status. Have your Social Security number ready when you call.

Steps to take if your payment plan changed

First, review the notice your servicer sends you. It will explain your new payment amount and when payments resume. Do not ignore the notice — if you do not respond or make a payment by the important date, your loan may go into default.

Second, determine whether you want to stay on the new plan or switch to a different income-driven repayment plan. If your income is low, you may still may have access to for a lower payment under PAYE, IBR, or ICR. Visit studentaid.gov and use the Repayment Estimator tool to see what your payment would be under each plan. Then contact your servicer to request a plan change. You can also submit a new income-driven repayment plan request form directly through studentaid.gov.

Third, if you work in public service and have not yet pursued PSLF, gather your employment documentation now. You will need to submit the Employment Certification Form (ECF) to your servicer to confirm that your employer qualifies. The standard PSLF process is still available — you straightforward cannot use the waiver to count retroactive payments anymore.

What has not changed about student loans

Federal student loans remain in repayment. The pause on loan payments that began during the COVID-19 pandemic ended in October 2023, and borrowers have been making payments since then. Interest continues to accrue on loans not in deferment or forbearance. The interest rate on federal loans is set by Congress and does not change based on policy shifts.

Income-driven repayment plans are still available and still calculate your payment based on your discretionary income. Loan forgiveness after 20 or 25 years of payments under an income-driven plan remains in place. Public Service Loan Forgiveness after 120 may have access to payments is still available to borrowers who work for government agencies or nonprofits. Private student loans are not affected by federal policy changes.

Frequently Asked Questions

Can I still get my loans forgiven if I work in public service?

Yes. Public Service Loan Forgiveness is still available. You need to make 120 may have access to payments under an income-driven repayment plan while working full-time for a government agency or nonprofit. The change is that you can no longer count old payments made under the wrong plan or while in deferment — only payments made going forward under the correct plan count.

What if I cannot afford my new payment amount?

Contact your servicer and request an income-driven repayment plan. These plans calculate your payment based on your income and family size, which often results in a lower payment than the standard 10-year plan. You can also request deferment or forbearance if you are experiencing financial hardship, though interest will accrue during forbearance.

Do I need to do anything if my loans were already forgiven?

No. Loans that were forgiven under the PSLF waiver or any other program remain forgiven. The policy changes affect only future submissions and borrowers who have not yet received forgiveness.

When will my servicer contact me about the changes?

Your servicer is required to send you written notice before your repayment plan changes. This notice will include your new payment amount and the date payments are due. Check your mail and your studentaid.gov account regularly for updates.

Can I switch back to SAVE if I want to?

The SAVE plan itself is still available, but the zero-dollar payment provision is paused. If you switch to SAVE, you would be on the standard SAVE payment formula, which calculates your payment based on your income. You can request to switch to SAVE at any time through your servicer or at studentaid.gov.