Major Student Loan Updates for September

As we look at the state of student loans this month, we still have no final ruling or guidance on the SAVE plan (mind boggling). The Department of Education (DOE) seems to have its priorities in the wrong place. Submitting even the most basic student loan applications feels like playing the lottery. And trying to resolve account issues is tougher than ever. On top of all that, the Fed looks like it may be about to make a move on interest rates.

That all being said, this month feels a little different. We here at Student Loan Professor can’t control the news, but we can help you navigate it. The headlines around student loans are often frustrating, so we’ve geared every section of this newsletter toward solutions, including practical steps and guidance you can actually use.

With that in mind, here’s what you need to know (and what you can do about it).

Latest on SAVE

Let’s just rip the bandage off here. We still have no ruling on the SAVE plan. I’m starting to think we might see the Second Coming before this ruling comes down.

On September 9, 2025, we saw all SAVE forbearances extended out to January 31, 2026. This may be a sign that the court is intentionally waiting until RAP comes online so that SAVE participants have another income-driven repayment option to transition into. While RAP isn’t guaranteed to launch until July 1, the OBBBA specifically noted they want it live “ASAP” for borrowers stuck in forbearance.

We don’t know for certain if the court, the DOE, and servicers are coordinating this behind the scenes, but it sure feels like something is going on.

Processing: What to Expect

Submitting student loan forms right now is a bit like scratching off a lottery ticket or opening a box of chocolates. As the great philosopher Forrest Gump said, “You never know what you’re gonna get.” Here’s what we’ve been seeing:

• Consolidation Paperwork: Surprisingly efficient. AidVantage (the only consolidation processor) doesn’t appear to be backed up.
• Income-Driven Repayment (IDR) Applications: Turnaround times vary by servicer. Some applications are approved within a week, while others take 3-4 weeks. MOHELA seems to have the slowest processing lately.
• PSLF Employment Certification Forms: Average processing time in August was around 10 business days. That’s a win!
• PSLF Buyback: Unfortunately, this is where things really stall. Applications are seriously backlogged, and we haven’t seen a single one processed for borrowers on SAVE. It’s possible the buyback can’t be calculated until the SAVE litigation is resolved, as the calculations may need to be based on a different repayment plan altogether.

When Your Servicer Stonewalls You

Recently, the DOE rebranded its Student Loan Ombudsman as the Office of Consumer Education and Ombudsman, broadening its mission from simply handling disputes to also offering borrower education and empowerment. Apparently, they are writing some sort of how-to manual.

On paper, that sounds like progress. But here’s the problem:

• The office still has a backlog of 27,000+ unresolved complaints.
• Many borrowers say they never hear back.
• More than half of the staff were let go.
• The online complaint submission form has been taken down.
• Complaints that had already been submitted were dismissed without resolution.

So, are we excited about the promise of a new “how-to” manual for borrowers? Uh, no.

That said, don’t lose hope if you’re stuck in a dispute. The Federal Ombudsman isn’t your only option. Our own Director of Education, Lisa Ciritella, recently published a roadmap to resolving student loan issues that can help you move forward.

Refinancing Opportunities

I don’t usually like to speculate, but I’m breaking that rule this month. The Fed meets next week, and most economists expect them to lower interest rates for the first time this year.

Here’s why this matters for you:

• Historically, there’s a strong correlation between Fed rates and student loan refinancing rates.
• If the Fed cuts by 25 bps (0.25%), I think we’ll see certain lenders drop by even more (perhaps 35, 45, or even 50 bps) to stay competitive.
• With SAVE/forbearance interest benefits gone as of August 1, thousands of borrowers are already exploring refinancing. But many didn’t like the initial offers, especially for longer-term or resident refi loans. Rates dropping 25 to 50bps lower than current refi offers would be a game changer for most borrowers. This is why we like to do two things for our clients:
  • Shop around. SLP is not beholden to any one lender. And we are not a lender. We serve as your personal shopper to find the best deals.
  • Revisit refinancing every year or two to maximize savings as the market changes. In other words, re-refi! I won’t cost you anything, but it could save you thousands.

👉 Sign up for a free refinancing appointment here.

Important Webinars

Between the massive changes brought on by the OBBBA and the uncertainty with SAVE, it’s no surprise our most recent webinars had record attendance. Borrowers are looking for clear direction on what actions to take, and when.

• We’ve scheduled more sessions for September and likely October.
• A special session for early-career physicians is coming up on September 23.
• If you don’t see one specific to your profession, join any loan repayment webinar. Much of the content applies to everyone.

We know there’s more borrowers who need our help. Please share the registration link with friends and colleagues who could benefit from this information.

Bottom Line

We’ll wrap things up so everyone can get back to watching college football…I mean, “work.” But we hope this month’s updates help you cut through the noise by providing tangible solutions. Whether it’s understanding SAVE extensions, navigating processing times, disputing servicer issues, or preparing to refinance, there are actions you can take right now. Click here to connect with us and make your next move with confidence.