Big updates across the board this month: Student Loans being transferred to Treasury, SAVE’s official end and forced transitions, automatic discharges for defrauded borrowers, Parent PLUS borrowers running out of time, and a faster cadence of IDR/PSLF forgiveness. Below is the latest—and how to act with confidence.

SAVE Transition: Forbearance Ends Starting September 30 for Some Borrowers

Courts have cleared the way for the SAVE administrative forbearance to end for most borrowers later this year, with some ending as early as September 30, 2026. Beginning July 1, servicers will notify borrowers of their specific end date, after which they will have 90 days to switch repayment plans. Interest continues to accrue during the forbearance, and these months do not count toward IDR forgiveness or PSLF.

Required action: Before the forbearance ends, borrowers must select a new repayment plan or they will be automatically placed into the Standard Repayment Plan (higher payments and no forgiveness credit).

Do this now: Choose an IDR plan proactively so you aren’t auto‑placed into Standard. If you’re pursuing forgiveness, switching now restarts qualifying months immediately. One open question remains: some borrowers who qualified for forgiveness during the brief window when SAVE was technically in effect may still receive relief—watch for legal/administrative updates.

👉 Get SAVE transition guidance

---

Defaulted Loans: Shift from Education to Treasury

The government is moving management of defaulted federal student loans from the Education Department to the Treasury under an interagency agreement—not a loan sale. Treasury will assume collections and borrower support for defaulted loans with the stated goal of returning more borrowers to good standing. Education retains policy authority and loan terms, and core systems (including FAFSA) are unchanged for now.

What it means for you:

• No action is required if you’re in good standing—keep paying your current servicer.
• If you’re in default (or unsure), check your status at StudentAid.gov and consider rehabilitation or consolidation to exit default before more aggressive collections resume.
• Early resolution prevents wage garnishment, credit damage, and tax refund/benefit offsets and can restore access to forgiveness programs.

👉 Learn more about Preventing or Getting Out of Default

---

Borrower Defense (Sweet v. McMahon): Automatic Discharges Moving Forward

A federal appeals court rejected the government’s latest attempt to delay relief, clearing the way for automatic loan discharges for roughly 205,000 borrowers who are part of the post-class group under the Sweet settlement. Borrowers who submitted BDR applications from June 22, 2022 to November 15, 2022 and whose schools are on the Exhibit C list will receive full settlement relief if they did not get a decision by January 28, 2026. 

As of now, about 164,000 federal student loan borrowers will be notified of automatic loan forgiveness eligibility. About 41,000 additional borrowers will not receive automatic forgiveness but are owed a decision about their borrower defense application by April 15.

Discharge is to be completed within a year of the date of the notice. 

What to expect: Watch for official notices; no separate application is required if you’re covered. If your contact info has changed, update your servicer and StudentAid.gov profile to avoid delays.

👉 Learn more

---

Repayment & Forgiveness Momentum: IDR, PSLF, and Oversight

• IDR cancellations are accelerating. With prior counting obstacles lifted, more borrowers reaching 20–25 years of payments under any IDR plan should see forgiveness.
• Backlogs are improving unevenly. The IDR application backlog is down to roughly 576,000. PSLF Buyback has surged past 88,000—implying multi‑year waits—yet regular PSLF still delivered more than 12,000 discharges in February. If you’re pursuing PSLF, keep certifying employment and income annually.
• Servicer oversight is strained. Independent federal reviews of servicer accuracy reportedly paused in 2025; ED disputes the impact, but errors can slip through. Protect yourself: keep your contact info current, monitor your account and payment counts, submit income via the online IDR application with IRS data‑sharing to speed processing, and know how to file and escalate complaints.

---

Parent PLUS: Consolidate Now

To maintain access to IDR and forgiveness, consolidate Parent PLUS loans ASAP and enroll in ICR; after one ICR payment you can move to IBR. New or unconsolidated Parent PLUS loans after July 1, 2026 are expected to be limited to Standard Repayment with no IDR/forgiveness pathway. Consolidation can take 4–6 weeks and delays are common—do not delay.

👉 Get more guidance

---

Upcoming Webinars with Live Q&A + Breakout Support

Life After SAVE: Your Student Loan Playbook for Debt Management, Relief, and Forgiveness
The end of SAVE doesn’t end smart options. We’ll cover what repayment will look like, how to pick a plan with forgiveness and interest costs in mind, and practical ways to save money over time. Stay for breakouts for personalized help.

Paying for College with Confidence: Financial Aid, Loan Limits, and Smart Borrowing
A clear guide to today’s aid landscape—new undergraduate and graduate loan limits, Parent PLUS considerations, and how aid choices shape long‑term repayment. We’ll share strategies to minimize borrowing, avoid pitfalls, and protect future financial stability.

Preventing Credit Damage and Student Loan Collections: Relief Options for Borrowers Behind on Payments
If you’re delinquent or in default, you’re not out of options. We’ll explain how delinquency/default impacts your credit, how to stop further damage, and the fastest ways to return to good standing. We’ll compare rehabilitation vs. consolidation and show how each affects future forgiveness. Breakouts included.

Employer Briefing: Supporting Your Workforce Through Student Loan Challenges

In 30 minutes, learn how EDCAP’s free, confidential counseling supports your employees, clarifies new federal rules, and helps you avoid wage‑garnishment hassles—reducing HR/payroll administrative burdens and compliance risk.