Is it Time to Leave the SAVE Program?

Why “riding it out” may no longer be the smartest move for PSLF borrowers.

The rollercoaster that is the SAVE forbearance may finally be slowing down, and for many borrowers, it could be time to step off the ride.

Before we dive in, let’s clear the air:

• No, there hasn’t been a final court ruling.
• No, there’s no bad news about the PSLF Buyback program.

No major news has dropped. But the ground beneath the SAVE program is shifting in subtle ways, and those shifts are prompting us to reevaluate the long-term value of staying in the forbearance.

What’s at Stake

Time spent in the SAVE forbearance does not automatically qualify for PSLF, but it does count toward the PSLF Buyback program, a benefit we’ve discussed many times this year.

The appeal of the Buyback program has been clear: it lets you “buy back” missed payments during the SAVE forbearance, often using older, lower income data and more favorable repayment calculations than what you’d owe if you had switched plans immediately when litigation began.

However, two recent developments are changing the math:

1. We’re now seeing PSLF Buyback applications processed. That gives us and our industry peers a first real look at how the Department of Education is calculating those payments.
2. The Department of Education has been quietly updating the PSLF Buyback page with new language and structure. Those edits tell us a lot about how the program is evolving.

Let’s unpack those updates.

The Fine Print: Five Key Changes and What they Mean

1. The reference to the SAVE forbearance has disappeared: the Buyback page no longer mentions SAVE by name. That doesn’t mean you won’t get credit for your time in forbearance, but it’s a signal. The Department of Education likely doesn’t want borrowers riding out SAVE indefinitely, counting on Buyback as a multi-year safety net.
2. Limited guidance beyond the first 12 months: the page now specifies that borrowers already in SAVE before forbearance began will have their first 12 months of Buyback calculated based on previously documented income. But there’s no mention of how payments will be calculated after that point, which is a notable omission.
3. New clarity for those who weren’t in SAVE at the start: for borrowers who applied for SAVE but were never formally accepted, the new language states that any missed payments beyond one year will require recent tax returns. That means you can’t use one old tax return to cover 18 or 24 months of back payments. We expect this same logic will eventually apply to all borrowers.
4. Tax documentation required for the first year as well: those who weren’t in SAVE when the forbearance began must now provide tax returns (or alternative income documentation) even for that initial 12-month period. This applies to a lot of borrowers who submitted SAVE applications that were never finalized.
5. Higher repayment formulas likely coming: with the court injunction still blocking SAVE, current Buyback calculations default to the old REPAYE formula, which means higher payments than SAVE, but lower payments than Legacy IBR or the new RAP plan. That’s temporary. Once litigation ends, we expect formulas like the Legacy IBR or possibly PAYE to take over. Both calculate higher payments than SAVE.

Here’s the catch: you can’t submit your Buyback application until you hit 120 qualifying payments, so the year you actually apply could affect which formula is used to determine your cost.

What This Means in Plain English

When we look at the income documentation requirements and the formulas likely to be used for payments beyond that first year, our conclusion is simple: continuing to sit in SAVE forbearance may not save you money in the long run.

There will be exceptions (particularly for borrowers planning to apply for Buyback within the next 6-12 months), but for most PSLF pursuers, the benefit is tapering off.

To be clear, staying in SAVE isn’t necessarily costing you money right now. But it could cost you time and create unnecessary complexity down the road, especially if you’re chasing precise forgiveness timelines.

As with all things student loan–related, you have to weigh the “best-case scenario” (which often comes with risks and unknowns) against the more certain benefit of moving into a plan that offers clear rules, consistent progress, and automatic PSLF credit.

Our Bottom Line

We still have full faith in the PSLF Buyback program: it’s a powerful tool that will save many borrowers significant money. But for many, it may be time to acknowledge that the SAVE forbearance has run its course. The smarter move now may be to transition to an active income-driven repayment plan that offers a more predictable path forward.

Your Next Steps

Your next best move depends on your unique situation.

• Some borrowers will benefit most from the old or new IBR plan.
• Others should consider PAYE before it sunsets in 2028.
• Some will thrive under the upcoming Repayment Assistance Plan (RAP) and its interest subsidies.
• And others may find a standardized or capped payment plan helps maximize PSLF progress while maintaining affordability.

To help you sort through these changes, we’re hosting two live webinars on November 19^th:

• 1 p.m. ET: Register here
• 8 p.m. ET: Register here

We’ll break down all the updates, review your repayment options, and answer your questions live.

For Our Clients and Readers

• Current Annual Clients: we encourage you to attend one of our webinars (or watch the recording we’ll publish after) and then schedule a 30-minute meeting with your advisor if/when you’re ready to adjust your plan. Contact Help@studentloanprofessor.com if you need assistance with scheduling.

• New or Prospective Clients: if you’re new to Student Loan Professor or haven’t worked with us in a while, this is the perfect time to get personalized guidance or to update your plan. Our advisors can help you compare repayment plans, estimate costs, and determine the best fit for your income and career trajectory.

We’re also offering 10% off your initial consultation through the end of the year. Click here to learn more, and be sure to use code UNSAVE when you book.

In Closing

The SAVE forbearance served an important purpose, but it’s not meant to be forever. The key now is to take control, make informed choices, and move into a repayment plan that keeps you moving steadily toward forgiveness.

Our advisors are here to help you run the numbers, cut through the confusion, and create a plan that truly fits your future.

Til debt do us part,
The Student Loan Professor Team