Thanks for your response. Right now my decision is wait it out or apply for IDR switch to old IBR. The payment would be around double what I was paying on SAVE but PAYE and REPAYE disappeared. I did read that one legal expert thinks that as PAYE dissolved with the introduction of SAVE, if the ED loses the lawsuit, SAVE will go away but PAYE may thus be allowed to reappear. My payment on PAYE was almost as low as it was on SAVE and had I had the option I would switch to it right now, but they closed it to new borrowers I believe as of July 1 before any legal challenges gave thought to switch.

Well said on all counts.

You also bring up a really interesting point. With SAVE blocked for the foreseeable future, the Department of Education should bring back REPAYE as an option for the borrowers who wish to continue making payments of some type and make progress toward forgiveness.

Thank you very much for your reply. My loans were in Administrative Forbearance, due to Covid, I lost my job (corporate downsizing) and took advantage of the on ramp period, I am retirement age so I doubt very seriously I will enter the workplace again, unless it’s on a part time basis. I could certainly benefit from some loan forgiveness. My servicer is Ed Financial, honestly they seem confused too; I was told this one time IDR adjustment was sent to Congress, it passed the House and was waiting on the Senate, I asked the Rep, is she was confusing this with the variations of the Save plan, she said no. I am not eligible for any save plan, PSLF forgiveness or any income contingent program that I am aware of. My loans are federal direct parent plus loan I signed for, for my daughter under grad loan in 2000. I understand the on ramp period that has nothing to do with potential forgiveness, however I didn’t want to start making payments if I am eligible for loan forgiveness and that what prompted my question to you. Thanks again for your reply, will have to wait it out like 30 million other borrowers. Thank you for the article.

Kind Regards

I think it will make the most sense to clarify the various programs that you’ve discussed in your comment. They all sound similar, but if we sort them out, hopefully it will clear things up.

The on-ramp is a program to help borrowers who have missed payments or struggled with the transition back to repayment. During the on-ramp period, negative credit reporting and other collections activities have stopped. Once the on-ramp ends, these activities will resume.

The one-time adjustment was supposed to have been completed by 9/1, and we are still waiting on results. I’m still hopeful that they finish before the election.

The opt-out email you received was in reference to forgiveness 2.0. The only circumstance were opting out makes sense is if you don’t want forgiveness because of state taxes. Most people will not need to opt out. If you want to know more, I wrote an article about Forgiveness 2.0 and the chances of it actually happening.